Product Name

Confirmation of L/C

Product Description

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

Functions

It undertakes the credit risks of the issuing bank for the exporter, to help the exporter receive payment in advance upon complying with the document delivery conditions; it can be divided into two forms: open confirmation and silent confirmation.

Features

1.Reduction of risks and acceleration of the capital turnover.Confirmation of L/C can help exporters prevent the risks from the issuing bank, the country risk and the foreign exchange control risks in the country of the issuing bank.

2.Double guarantee.Apart from the conditional payment undertaking made by the issuing bank, the exporters can get the conditional payment undertaking from Bank of China, so the payment guarantee is doubled.

3.Payment collection guarantee. Upon presentation in compliance with the L/C's requirements and approval of Bank of China, the exporters can gain non-recourse payment or payment promise.

Eligible Applicants

1.Exporters who want to obtain the payment confirmation from a bank other than the issuing bank.

2.Exporters who want to obtain non-recourse funds after presentation of documents even if the issuing bank has a good credit standing.

Application Requirements

I.Basic qualifications

1.The applicants hold the business license legally approved, registered and annually checked as well as other valid certificates sufficient to prove the legitimacy and scope of operation.

2.The applicants shall have the qualification to engage in import and export trade.

3.There is no negative credit record at Bank of China and/or other financial institutions.

II.The issuing bank must be a financial institution with a credit authorization and a good credibility.

Procedure

1.Bank of China provides confirmation upon the request of the issuing bank or the exporter (beneficiary) when advising the L/C;

2.The exporter presents the complying documents to Bank of China, and the Branch makes non-recourse payment or irrevocable payment promise to the exporter after examination and approval;

3.Bank of China mails the documents to the foreign issuing bank to claim reimbursement and will confirm the payment after the foreign payment received.