About the product
After receiving the letter of credit from the issuing bank, the Bank provides a series of services for exporters, including letter of credit advise, confirmation, document examination/negotiation, etc.
1. Letter of credit advising means that the Bank advise the beneficiary of the letter of credit or amendment that the Bank has received.
2. Confirmation of letter of credit means that the Bank undertakes the payment responsibility to the beneficiary, independent of the issuing bank.
3. L/C document examination/negotiation refers to the comprehensive service provided by the Bank for exporters under L/C, which integrates document examination, sending and remittance.
Product features
1. Bank credit and high degree of acceptance ensure the safety of the exporter's payment to a certain extent and help the exporter to prepare the goods in time.
2. It helps importers and exporters to apply to their respective banks for trade financing business.
Application
Exporters who do not know the importer's credit status and need the intervention of bank credit, or want to obtain diversified financing under L/C settlement.
Rate
1. Letter of credit advising: 200 yuan/transaction. Bangladeshi letter of credit advising: 300 yuan/transaction
2. Amendment advising : 100 yuan/transaction (For an additional amendment under a confirmed letter of credit, it shall be calculated based on the confirmation rate, with a minimum of 100 yuan/transaction). Bangladeshi letter of credit amendment advising: 150 yuan/transaction
3. Confirmation of letter of credit: 2‰ of the confirmation amount, with a minimum of 300 yuan, which shall be collected on a quarterly basis (it can be increased to 2‰-2%/quarter according to the risk degree of the country and banks).
4. Letter of credit document examination/negotiation: 1.25‰ of the document examination/negotiation amount, with a minimum of 300 yuan.
5. Post and telecommunications fees are calculated separately.
Handling process
1. Letter of credit advising:
(1) After receiving the certificate or amendment, the Bank shall verify its authenticity by checking the seal or cipher.
(2) The Bank will advise the beneficiary of the L/C or its amendment, and remind him of the potential risks in the terms.
2. Confirmation of letter of credit:
(1) When the Bank issues the letter of credit advise, the Bank will add confirmation at the request of the issuing bank or the exporter (beneficiary).
(2) After the exporter submits the export documents to the Bank, the Bank will make payment without recourse or irrevocable payment commitment to the exporter after check and verification.
(3) The Bank will send the documents to the issuing bank for remittance, and after receiving the payment, the Bank will use it to repay the money paid by the Bank.
3. L/C document examination/negotiation:
(1) After preparing and shipping the goods according to the terms of the letter of credit, the exporter (beneficiary) shall submit the export documents to the Bank.
(2) After examining the documents, the Bank shall send them to the issuing bank or the nominated bank for remittance.
(3) After receiving the documents, the issuing bank shall present them to the applicant under the letter of credit.
(4) The issuing bank shall pay the Bank when it is due, and the Bank shall pay the exporter.
