Introduction
The import L/C is a payment undertaking by Corpus Bank to the foreign importer. Corpus Bank will fulfil its payment obligation when the terms stipulated in the L/C are complied with.
Scope of Business
- Issuance of all kinds of L/Cs, such as: sight payment, deferred payment, acceptance, negotiation, transferable, confirmation, revolving and counter L/Cs;
- The business includes: issuing letter of credit (including Issuing of L/C with Credit Limits and on margin), amendment, examination of documents, payment/acceptance or non payment, etc.; providing financing such as Import Bill Advance and Shipping Guarantee; assisting importer with the business information survey, stock-up and shipping information inquiry.
Features
- Improvement of your bargaining position in a negotiation – opening L/C provides the exporter with a conditional payment commitment on top of the commercial credit, giving you better credit by which you may win favorable price terms for your goods;
- Warranty of your cargo – commercial credit is enhanced by bank credit through the product. The trade itself will be warranted by the bank, and the ownership of the cargo, shipping date and quality of cargos are well controlled under the documents and terms;
- Reduction of fund occupation – for the importer who uses the L/C with credit limits, the fund occupation will be minimized during the period between the L/C issuance and payment.
Target Customers
Importer and exporter wish to promote the level of trade credit by making appointment on each other’s business activities;
The imported commodity is within a seller’s market and the exporter insists on settlement with L/Cs;
Both importer and exporter want to select trade finance out of the lack of liquidity.
Required Documents
- When applying for the issuance of L/C, applicant has to submit an application for L/C, trade contract, import certification such as import quota permit, import registered certification for mechanical & electrical products, relevant documents stipulated by the foreign exchange authorities such as application for foreign exchange purchasing, voucher for verification and cancellation of trade import exchange payment, and record table of foreign exchange payments for import.
- When handling the transaction for the first time, import and export certification and business license, etc. shall be presented to the bank for opening a margin account.
Process
Kind Reminder
You will incur more banking cost to open an import L/C for the additional payment undertaking from the bank, in view of which you are suggested to ask for a favorable price or other convenience when you sign a contract with the exporter.
