Product Description

A Letter of Credit is a conditional undertaking issued by a bank to pay an amount to the beneficiary of said letter of credit upon presentation of documents strictly complying to the terms and conditions precisely stipulated in the Letter of Credit. Among those documents are usually transport documents and/or certificates evidencing shipment of goods or delivery of services to beneficiary. The Letter of Credit is issued by a bank by order of a client (usually the purchaser of goods or services) in favour of the seller of said goods of services (called the beneficiary).

1.Advice of L/C

Advice of L/C means the notification of the received L/C or its amendments to the beneficiary by Bank of China.

2.Confirmation of L/C

Confirmation of L/C is the additional payment obligation undertaken independently by Bank of China for the beneficiary of the L/C beyond the payment obligation of the issuing bank.