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I. Introduction
Use this service when your company makes an agreement with your exporter to use L/C as the settlement of trade. ICBC will open Letter of Credit to exporter based on your application. When ICBC receives all the commercial documents sent from your exporter's bank, ICBC will proceed for acceptance (or payment) to exporter or its assigner provided all documents are verified without errors.
II. Features and Advantages
Letter of Credit opened by ICBC is fast, widely accepted, rich variety and comes with extensive service:
1. Fast: ICBC chooses the shortest path to deliver the L/C to your exporter in the shortest time via the large network of overseas branches and correspondent banks.
2. Widely Accepted: Credibility of the L/C opening bank determines if L/C can be used to get financing. In this regard, ICBC L/C is widely accepted by international banks because of the excellent reputation of ICBC. Your exporter will find it very convenient to use ICBC L/C for the purpose.
3. Rich Variety: Different types of L/C can be opened depending on your requirement: transferable, back-to-back, sight payment, deferred payment, negotiation, and usance L/C (buyer).
4. Extensive services: a basket of follow-up services available: import bill purchase, usance L/C (buyer), L/C payment-on-behalf, goods collection, and bill of Lading endorsement.
III. Target Clients
You as the importer have to open L/C to settle with exporters and send the L/C to your exporter in due course.
IV. Operation Guide
Submit the following when applying for import L/C:
1. Application Form with company seal affixed;
2. Prepare irrevocable documentary credit agreement;
3. Import contract (L/C Opening-on-Behalf Agreement (if necessary));
4. Import Payment Cancellation Slip;
5. Import Payment Record (if necessary);
6. Business License (copy) and loan card (first time opening of L/C at ICBC);
7. Other documentations required by ICBC.
V. Application Conditions
1. Your company should be in the list of "Payment against Import" of SAFE (State Administration of Foreign Exchange);
2. Your company must be rated by ICBC with an approved credit line;
3. Your company must pay the security deposit stated in ICBC rules and guarantee on the difference between the L/C amount and security deposit.
VI. Statement
Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final right of interpretation. Refer to the announcements and regulations of local branches for further details.
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