Import L/C refers to an undertaking of a bank for account of the importer to pay the foreign exporter provided the required terms of L/C are complied with.

Types of L/C

SRCB can open several types of L/C for customers, including Sight L/C, Usance L/C, Acceptance L/C, Negotiation L/C, Transferable L/C, Confirmed L/C, Revolving L/C, Reciprocal L/C, etc.

Scope of service

SRCB’s L/C business covers L/C Issuance, Amendment, Examination, Payment Acceptance or Dishonor, etc. Also, SRCB can assist customers to investigate on the credit information of the exporter, and provide information on exporter’s stock preparation and shipment.

SRCB provides trade financing service under import L/C, which include Import Bill Advance, Shipment Guarantee, etc.

Features

Credit improvement. The issuance of L/C provides with bank credit instead of commercial credit for the payment, which gives the importer some advantage in trade negotiation.

Transaction security. Since banks are participating in trade transactions, the trade process will be more standardized, and through the requirement of documents under L/C,  importers can have more effective control over ownership of the goods, transportation method, shipment date and quality of goods, etc.

Reduced funding requirement. Importers can apply for discounted security deposit when issuing L/C with the bank.

Applicable situations

1.    For importers & exporters both would like to have some restrictions on each other, and would like to improve trade reliability.

2.    For trade deal in a seller’s market where the exporter insists on adopting L/C settlement.

3.    For importers & exporters both lack of sufficient working capitals and require trade finance.

Kind reminder

For first-time applicants, SRCB requires documents including trade business license, business registration certificate, etc for security deposit account opening.

Since L/C issuance will impose more cost on the importer, the importer can ask for price discount or other favorable trade conditions when signing commercial contract with the exporter.