Export L/C

Product Introduction

L/C is an irrevocable arrangement that constitutes a commitment made by the letter issuing bank to the assured payment of the consistent vouchers submitted by the beneficiary (exporter)

Product Features

1.Standardized operating procedure. The operation follows the Unified Practices for Documentary L/C established by the International Chamber of Commerce; the L/C operation of banks worldwide has form a basically unified standard.

2.It enhances trade safety. When the letter is consistent, the bank undertakes the first payment responsibility, so you don’t have to worry about that you don’t know much about the importer or you don’t trust the importer, thus the deal can be made smoothly.

3.It effectively eliminates risks. Via the requirements of L/C, you can effectively control the right of the goods, transportation manner and shipping date, thus avoiding the risk that you have shipped the goods but fail to receive the goods payment.

4.It reduces fund occupation. When you are short of money, you can apply for a short-term financing instrument such as export bill advance or forfeiting, so as to ease your own fund pressure, expedite fund turnover, and gain greater profits.

Our Commitments

1.Having received the L/C telegram issued by the letter-issuing bank, our bank will, within a working day, finish the examination of L/C clauses and notify you to come to our bank to receive the L/C; having received the vouchers you have submitted, our bank will, within two working days, finish the examination of the vouchers and send out the vouchers.

2.Before processing the L/C notice, our L/C experts will carefully examine the credit standing of the letter-issuing bank and specific clauses of the L/C in a responsible way, and remind you of risks in the L/C in a timely fashion, so that you can contact the overseas exporter to revise the clauses to avoid L/C related disputes.

3.After you have submitted the vouchers under the L/C, our L/C experts will control the risks in L/C clauses and voucher examination for you, so that the trade settlement process will be more conforming with international practices, thus reducing the number of nonconforming clauses in the L/C and avoiding the risks in L/C fraud to the maximum extent.

4.Our bank provides high-quality services such as collection urgence, acceptance notice, and proceeds receipt after delivery of vouchers. In addition, we also provide you with such follow-up financing services as export L/C advance, export L/C guarantee advance and forfeiting.

Kind Reminders

1.The L/C you have received shall include the specific name of the goods in order to prevent the suspicion of money laundering, and shall follow UCP600.

2.Letter of credit is the bank’s commitment of payment; its payment assurance capacity depends on the credit of the letter issuing bank to a very wide extent. Therefore, our bank suggests that you ask the exporter to have the L/C issued by a bank with a ranking of the investment level or higher, so as to avoid the risks in the unreasonable payment refusal and credit standing of the letter issuing bank.

3.Letter of credit is a conditional commitment of payment; L/C clauses indicate the specific payment conditions of the letter-issuing bank; if the payment conditions are severe or hard for you to meet, the payment promised by the bank will become nothing but just a piece of paper. Therefore, you shall carefully examine L/C clauses and ask the exporter to revise the L/C according to our bank’s risk reminders whenever possible so as to avoid L/C related disputes and risks of proceeds receipt.

4.When submitting the vouchers, you shall submit the customer contact list, all vouchers required by the L/C, L/C, the revised original copy, and letter of notice.