L/C Payment Procedures For Cloth Importation-Woven Garment Merchandising
Sunday 8 December 2013
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In representative of larger total importation L/C is used. It is a costly physical care for than TT.
An irrevocable Letter of Credit is too an frequently used payment method. It is frequently referred to an L/C. Letters of Credit are formal payment methods that offering a lot of protection to the parties.
Simply put, a missive of the alphabet of credit is a missive of the alphabet written past times the importer's banking concern to the exporter. It verifies that the payment volition last guaranteed when the banking concern is presented alongside the concrete documents (bill of loading, as well as freight documents). Most letters of credit are "irrevocable" i time the importer has had them sent.
Influenza A virus subtype H5N1 missive of the alphabet of credit unremarkably includes applicant (you, the importer), beneficiary, opening bank, negotiating bank, specification as well as quantity of the goods, total of money, loading port as well as goal port, shipment date, the validity appointment of the L/C, damage as well as weather condition agreed past times both the importer as well as seller, as well as the documents required past times the importers (bill of loading, commercial invoice, packing list, insurance certificate, etc.)
L/C payment damage procedures:
a. You (the importer) applies to opened upward the L/C to us (the seller) through a banking concern who tin terminate opened upward the L/C inward your country.
b. The opening banking concern volition inform The Bank of Seller that the L/C has been opened.
c. The Bank of Seller volition inform us that the L/C has been established.
d. Seller volition banking concern agree all the damage as well as weather condition listed inward the L/C. If all damage as well as weather condition are acceptable, They'll conform the shipment inside the fourth dimension specified inward the L/C.
e. After the goods are loaded onto the send without whatever damage, the captain volition effect the build clean neb of lading to seller.
f. They volition submit the build clean neb of loading as well as other relevant documents to The Bank of seller to get together the payment. Only alongside build clean neb of loading tin terminate you lot claim the ownership of the goods.
g. The Bank of seller volition mail the build clean neb of lading as well as relevant documents to your banking concern (the opening bank).
h. The opening banking concern volition inform you lot that all documents are received.
i. You volition larn to the banking concern to brand the payment to larn the build clean neb of loading as well as relevant documents.
j. With all of these documents, you lot tin terminate clear the import Customs as well as alternative upward the goods afterwards the goods operate inward on the goal ocean port.