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I. Introduction
ICBC acts on your instruction to open a Time Letter of Credit to your exporter. ICBC will make payment against the presentation of documents which comply with the L/C terms. To the exporter, Time L/C is a sight payment, but the importer sees this as far day payment.
II. Features and Advantages
1. A financing opportunity to solve your short-term need and increase the liquidity of your company. You can collect the goods near day but make the payment in far day;
2. Easy to apply. Once all the documentations are completed, sign the Time Letter of Credit (Buyer) Agreement and get the L/C straight away;
3. Low cost. Your cost is lower by the preferential trade finance rate offered by ICBC..
III. Target Clients
Open the L/C as stated in the contract with your exporter.
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. FAQ
ICBC also offers a package of services such as forward FX sales.
VII. 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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