Product Name

Issuance of L/C

Product Description

The L/C is a payment undertaking by Bank of China to the exporter as it is applied by the importer. Bank of China Limited Karachi Branch will fulfill its payment obligation when the terms and conditions under the L/C are satisfied.

Features

1.Improve 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 a better credit by which you can win the favorable pricing terms for your goods.

2.Provide warranty for the cargo. The commercial credibility is replaced by the bank's credibility. The bank's involvement can ensure a safer trade. The ownership of the cargo, shipping date and quality of the cargo can be well controlled by the documents and clauses.

3.Reduce the occupation of fund. For the importer who have L/C issued base on their credit line, the fund occupation will be minimized during the period from the L/C issuance to the payment.

Eligible Applicants

1.Importers and exporters who want to promote the trade credit by making appointment on each other's business activities.

2.The imported commodity is in a seller's market and the exporter insists on a settlement with L/C.

3.Both the importers and exporters want to select trade finance due to the lack of liquidity.

Application Requirements

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.

Procedure

1.The importer submits the Application for Issuance of L/C. Bank of China Limited Karachi Branch will issue the L/C based on the margin or credit line after examination and approval.

2.The exporter prepares and ships the goods in accordance with the relevant L/C clauses after having been advised of the L/C.

3.The exporter presents the documents required by the L/C. The transmitting bank mails the documents to Bank of China Limited Karachi Branch to ask for payment or acceptance.

4.Upon receipt of the documents, Bank of China Limited Karachi Branch will make payment or acceptance to the exporters after examination and approval.

5.Bank of China Limited Karachi Branch makes the payment when the acceptance is due.