Letter of credit export
Letter of credit export I. Letter of credit export bill (NEGOTIATIONSUNDERGUAUNTEE) Upon receipt of the letter of credit, the exporter, after the shipment of the goods, delivers the relevant set of documents required by the letter of credit to the bank, requiring the bank to immediately pay in accordance with the amount of the letter of credit, enabling the exporter to Get short-term capital turnover. 2. Types of imported bills 1. The bill of exchange of the letter of credit According to the requirements of the letter of credit, the exporter will hand over the various documents and letters of credit listed on the letter of credit to the bank for short-term loans, which are actually mortgaged to the bank with the documents of the letter of credit. 2. Forward bills accepted by the letter of credit The exporter’s forward letter of credit business is notified by the issuing bank, and the exporter uses the acceptance notice of the forward letter of credit to apply for short-term loans from the bank. 3. Discount of forward bank acceptance bills Short-term borrowings using forward bank acceptance bills as collateral. The exporter got a forward bank draft, which has been accepted by the bank, but has not expired, and the exporter can mortgage the bank with a draft. III. Operational procedures for the export of letters of credit 1. Provide the bank with an application for foreign exchange bills and loans. The contents of the application include the introduction of the basic situation of the company, the financial status of the company, the amount of the application, and the time limit for the application. 2. Provide relevant information to the bank. (1). A copy of the business license of the company. (2). Foreign trade contract or agency agreement. (3). The company's annual financial statements for the past three years and the financial statements of the recent period. (4). The bank's application for export negotiation (bargain). (5). The bank's export bill of exchange agreement. (6). The original of the letter of credit and the original amendment of the letter of credit. (7). A full set of documents required by the letter of credit (including the amendment of the letter of credit). 3. The amount of the letter of credit export bill (1). The amount of the exchange rate is higher than 90% of the amount of the bill of exchange. Generally, the method of withholding interest, that is, the amount of the bill of exchange - the interest of the bill is used. (2). Interest on the bill of exchange for the current letter of credit = (the amount of the bill of exchange × the rate of the bill of exchange × the number of days of the bill of exchange) / 360 days (3). Forward credit certificate interest rate = (the amount of the bill of exchange × the interest rate of the bill of exchange × the number of days of the bill of exchange) × (the date of acceptance payment - the date of the exchange rate) / 360 days 4. The billing period (1). The term of the current letter of credit is different according to each country. The national time limit under normal circumstances is as follows: 15 days: Japan, Korea, Hong Kong, Macau, Singapore, Malaysia 20 days: Europe, USA, Canada, Australia, New Zealand 25 days: West Asia, Central and South America, Africa 30 days: other countries or regions (2). The term of the bill of exchange after the acceptance of the forward letter of credit is from the value date of the bill of exchange to the date of acceptance payment. If the settlement of the payment is made and the amount of the remittance is returned, the bank will transfer the balance to the relevant account of the enterprise. If the bank actually receives the negotiated payment for longer than the time of the bill, the interest will be recovered from the bank at this time. 6. In the following cases, the export of foreign exchange at the bank will be restricted. (1). The letter of credit is no longer notified, paid (or accepted) and negotiated by the same bank. Therefore, it is better for companies to choose the same bank for payment (or acceptance) and negotiation. (2) The letter of credit is revocable (or transferable). Therefore, companies should not ask for this type of letter of credit. (3). The letter of credit has been used for mortgage. Mortgage includes packing and lending. (4). The time limit for applying for a bill is more than 90 days. Therefore, the company requires the other party to open a forward letter of credit for less than 90 days. (5). The letter of credit is a payment letter of credit. Therefore, companies should not ask for such letters of credit. (6). There are discrepancies in the documents under the letter of credit. The company must produce the documents in accordance with the requirements of the terms of the letter of credit. (7). The valid place of the letter of credit is abroad. Therefore, the effective location of the letter of credit is required in China. (8). The letter of credit is close to the validity period. Therefore, on the one hand, the validity of the letter of credit is required to be longer. On the other hand, enterprises should take the time to do well when making the documents. (9). The forward letter of credit has already sent the documents and has not been accepted. Therefore, after the forward letter of credit is accepted, it can go to the bank to handle the export bill. (10). The credit bank has a bad reputation. Therefore, when the letter of credit is issued, some large banks should be selected for the issuance of certificates. (11). The issuing bank's state political situation is unstable, foreign exchange control is strict, credit rating is low, war is frequent, and the issuing bank is in a business crisis. Therefore, the national situation of the country should also be considered when the letter of credit is issued. Led Light Helmet,Safety Helmet,Mining Hard Helmet Safety Shoes Gloves Co., Ltd. , http://www.nsshoes-safety.com
5. Recycling of negotiable payments and return of loans