The L/C is a payment undertaking by Bank of China to the foreign importer. Bank of China will fulfill its payment obligation when the terms stipulated in the L/C are complied with.

Features

1.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;

2.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;

3.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.