WHAT DOES PERFORMANCE BOND MEAN AND HOW DOES IT WORK IN COMBINATION WITH A LETTER OF CREDIT? Please

You're asking about this exactly what I've just come across now. The performance bond or performance bond means that the tenderer and the winning bidder become the employer and the contractor after signing the contract.

The contractor must provide the employer with a performance guarantee issued by a bank, generally in the amount of 10 15 of the contract amount, to ensure that the contractor performs the contract in accordance with the terms of the contract. Otherwise, the bank is responsible for compensating a certain amount, up to the total amount of the performance bond. Our company is the contractor or the winning bidder mentioned above, which will first go to the bank by colleagues to handle the performance guarantee, and then when the factory informs us that the goods are about to be ready, we will notify the buyer (that is, the tenderer or the employer) and ask them to open a letter of credit, at this time, the buyer will let us confirm the content of the letter of credit, that is, the basic information of the future letter of credit.

However, I did not see the words of the performance guarantee on the issuance application. Therefore, I think this performance bond has nothing to do with the content of the letter of credit issued to us by the buyer. However, in the contract we signed with the buyer, the relevant information about the letter of credit and the performance guarantee are stated.

Hello! Performance Bond. Generally, there may be requirements for mechanical and electrical products or commodities with a large amount of subject matter.

If it helps you, hope.

Performance bonds. It is a complement to Proforma Invoice.

It has nothing to do with LC, and LC can be opened according to Proforma Invoice.

Performance Bond. Generally, there may be requirements for mechanical and electrical products or commodities with a large amount of subject matter.

n.Bond; Combine; Conventions; Adhesive.

vt.make binding; to....as collateral.

vi.United, united.

n.(bond) personal name; (British, German, Spanish, Congo (golden), Swedish) BondI am a teacher, if there is anything you don't understand, you can continue to ask me.

Hello classmates, I'm glad to answer for you!

The translation of bond is bond, the word you are talking about, it is one of the core vocabulary of CMA, the meaning of this word is as follows: bond is a debt investment, the investor borrows money from an entity (company or **) that needs funds at a specific interest rate and period, and the investor can obtain a certificate, that is, a bond, which states the interest rate (coupon) that the investor can receive and the date on which the funds will be repaid (maturity date). Interest on bonds is generally paid every six months (six months).

Gordon wishes you a happy life!

extendable bond; The issuer has the right to defer the payment of the bond after it matures.

Revocable L C refers to the letter of credit issued by the issuing bank without the consent of the beneficiary or the relevant parties, and has the right to revoke or modify the letter of credit at any time.

An irrevocable letter of credit (Irrevocable L C) refers to a letter of credit that cannot be arbitrarily modified or revoked by the issuing bank without the consent of the beneficiary or the negotiating bank and other relevant parties within the validity period once it is issued; As long as the beneficiary provides the relevant documents in accordance with the provisions of the certificate, the issuing bank (or the bank designated by the beneficiary) guarantees that the payment will be made in full.

Please note: The above is the description of revocable and irrevocable letters of credit in UCP500, while UCP600 clarifies that letters of credit are irrevocable, and considers letters of credit to be "a definite and irrevocable commitment arrangement for the issuing bank to redeem documents in conformity". However, if there is a real need to open a revocable letter of credit in practice, according to the comments of the drafting group of the UCP600, specific clauses must be set out in the letter of credit to reflect the revocable nature of the letter of credit.

There are no revocable letters of credit anymore and all letters of credit that have been opened are considered irrevocable, whether or not they are indicated irrevocable.

Revocable L C refers to the letter of credit that can be revoked by the applicant once issued by the bank, and this kind of letter of credit is not used by everyone now. This does not guarantee the interests of the beneficiaries.

irrevocable l c refers to an irrevocable letter of credit. These letters of credit are now in circulation, and they are irrevocable once they are issued. In this way, in line with the principle of fairness and integrity, the interests of the beneficiaries can also be guaranteed.

Comrade upstairs was right.

To add that an irrevocable letter of credit cannot be unilaterally revoked by the applicant, to be precise, if the applicant, the issuing bank and the beneficiary all agree to revoke, it is okay. The most important thing is the beneficiary's consent.

47a: Additional Terms.

The insurance is handled locally by the applicant for the certificate.

The invoice must prove that the goods are in accordance with the applicant's order**, and the total FOB value cannot exceed the amount of the letter of credit before deducting the **commission (if any).

All receipts must be issued in English.

All receipts must bear the Bank's letter of credit number and date and "the goods are freely importable under chapter 5 of exim policy 2004-2009."words.

Photocopied or computerized carbon copies will not be accepted unless they are marked as original and signed.

Can be shipped before the date of issuance.

If the submitted documents contain discrepancies, a discrepancy fee of $25 will be deducted from payment processing at the rate of $25 per set of semi-receipts.

Import bills are bills made by the buyer to take a loan from the issuing bank and use the loan to pay for the goods under the letter of credit. If the payment is made within 90 days, the payment should be made from the bank on the due date.

First of all, the business of opening a letter of credit by a bank is the financing business of the bank credit applicant. 90 days after you reach the bill of lading with the customer, it is the exporter financing to the L/C issuing bank, to the date of payment, can not repay, and then go to the bank to handle the bill, after the bank accepts, in the payment date to the other party, the import bill of purchase period by your company and the bank again to reach a financing contract.

In short, it is the financing that the bank gives you.

First of all, the payment time of the bank is not to pay when the documents are received, but only to accept when the documents are received, and there will be an acceptance due date on the acceptance notice (for example, the acceptance notice will be written on the date of the order: August 6; Acceptance due date October 8) The bank's payment time is October 8. If you do not make a bill, the bank will ask you to remit the corresponding amount under the letter of credit to their account before October 8, and then the bank will send the money to the other party on October 8.

If you ask to do a bill, that is, the bank will help you remit the money to the other party on October 8, and you don't need to give the money to the bank first, and you will negotiate with the bank on the term of the bill, which is equivalent to the bank to pledge the margin under your letter of credit to make a financing for you.

The former item is the port of the airport, which means port.

The latter item is the final destination.

Example: port of discharge: qingdao seaport, China

for transportation to weifang ,shandong ,china.

The first is the destination port Airport: Qingdao, China;

The second item is the final place: it is shipped to Weifang, Shandong, China.

Your sentence doesn't look like the current statement of the letter of credit. If there is one now, it should be.

44f：montreal,quebec,canada

It means shipping to Montreal, Quebec, Canada.

Port of discharge: Vancouver, Canada.

Shipped to: Montreal, Quebec, Canada.

1. For L/C, there are generally only two kinds of positive selling risks, namely, the creditworthiness of the issuing bank and the operation of the beneficiary. In the case of confirmed letters of credit, the bank's reputation has been resolved through confirmation; Then, the rest is the operation of the beneficiary. As far as the operation of the letter of credit is concerned, the beneficiary must act in strict accordance with the provisions of the letter of credit - the shipment of the Chinese on time and submit the documents that meet the requirements of the letter of credit.

2. The so-called 60 days generally refers to the forward 60 days, that is, 60 days after the bill of lading or 60 days after the issuing bank sees the bill of lading - it depends on how the letter of credit is stipulated.