About the product
Issuing of L/C with credit limits refers to the related business in which the Bank opens import letter of credit for customers without collecting the full deposit.
Product features
Reduce the capital occupation, accelerate the capital turnover, and improve the efficiency of use of capital.
Application
Importers do not have sufficient liquidity or have other investment opportunities, and hope to be exempted from paying the deposit for opening the L/C in part or in full.
Rate
1.5 ‰-1% of the L/C amount, with a minimum of yuan, and an increase of 0.5‰ every three months for a validity period of more than three months.
Handling process
1. The importer and the exporter sign an import trade contract and agree to settlement by letter of credit.
2. Upon the application of the importer, the Bank shall verify the credit limit.
3. The Bank accepts the importer's application for opening L/C and uses its credit limit to open L/C.
4. The notifying bank notifies the beneficiary, i.e., the exporter, of the letter of credit.
5. The exporter prepares the goods for shipment and submits the documents required by the L/C to the Bank through the bank in the place of export.
6. After receiving the documents, the Bank deducts the importer's money for payment or make payment on the due date after acceptance.
7. In case of any nonconformities with the documents, the Bank can refuse to pay. After the importer accepts the documents, the Bank will accept or make payment.
8. After payment, the credit line of the importer in the Bank shall be released.
