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Letters of Credit

Posted in Commercial Services

 Letters of Credit, Import and Export

Through opening letter of credits, it saves both time and money. in addition, it is the most world  wide spread solutions among banks to carry out the commercial activities in ease and secure conforming with international laws and norms , in order to ensure  the buyers receives his money and purchaser receives his goods in due time comply with terms for opening letter of credits .

Conditions for opening L/C:
 
  1. The applicant must be bank's customer and maintains an account.
  2. The applicant should acquire the relevant management approval for opening and issuing the letter of credit with specified / clear terms ; or it is within the credit limit.
  3. The applicant should submit proforma invoice or "sales order" from the exporter.
  4. The application form for issuing L/C and its General terms should be filled and completed thoroughly and signed. 

Terms and conditions for advising a Letter of credit:

  1. The beneficiary should maintain an account with our bank.
  2. The importer should not be listed among the debarred or ineligible ones.
  3. The incoming lc should have acquired the necessary management approval for the incoming letter of credit and adding our advising and/ or deferred payment.
  4. Adding our advising is done after studying incoming letter of credit and informing the beneficiary of the weakness points (if it exists).
  5. The applicant should present documents that are complied with letter of credit.

Foreign Exchange

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