EDA bearing The most commonly used international trade payment and credit
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Letter of credit (LETTER - OF CREDIT, L/C)
The letter of credit is the bank (the issuing bank) in accordance with the importer (the applicant) requirements and instructions, to the exporter (beneficiaries) issued by the authorized issuance to banks, exporters or importers draft, guarantee in to meet the provisions of the letter of credit draft and documents, must the acceptance and payment of the ensure the file.
The main characteristic, the letter of credit:
Under the terms of the conditions of the credit, the issuing bank is the first bank. The letter of credit is a bank credit.
Letter of credit is a self-contained file independent of outside contract for the sale of.
Under the letter of credit payment is a documentation of the sale: the exporter after delivery the document, as long as the line do the terms and conditions of the credit, "the same document, just the same," bank guarantees payment to exporters. Importers have the documents representing the goods after payment.
Two, under the credit of the main document:
Bill: BILL OF EXCHANGE /DRAFT
Invoice: INVOICE
Bill of lading: BILL OF LADING
Insurance: INSURANCE POLICY
Packing and weight list: PACKING LIST AND WEIGHT MEMO
Certificate of origin: CERTIFICATE OF ORIGIN
Certificate of inspection: INSPECTION CERTIFICATE