lc ppt.ppt

Letter of Credit A letter of credit is a document that a bank issues to a seller of goods or services which provides that the issuer will pay the seller for goods or services the seller delivers to a third-party buyer. The issuer then seeks reimbursement from the buyer or from the buyers bank. The document serves as a guarantee to the seller that it will be paid by the issuer of the letter of credit regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credits issuer. Documents that can be presented for payment To receive payment, an exporter or shipper must present the documents required by the letter of credit. Typically, the payee presents a document proving the goods were sent instead of showing the actual goods. The Original Bill of Lading (OBL) is normally the document accepted by banks as proof that goods have been shipped. However, the list and form of documents is open to imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped, or their place of origin or place. Typical types of documents in such contracts might include: Financial Documents: Bill of Exchange, Co-accepted Draft Commercial Documents: Invoice, Packing list Shipping Documents: Transport Document, Insurance Certificate, Commercial, Official or Legal Documents Official Documents: License, Embassy legalization, Origin Certificate, Inspection Certificate, Phytosanitary certificate Transport Documents: Bill of Lading Insurance documents: Insurance policy, or Certificate Issuing bank means the bank that issues a credit at the request of an applicant . Importer is the Applicant -- the party on whose request the credit is issued. 广州 Los Angeles Shiling Leather Co 狮岭镇 Shīlǐng Zhèn Las Vegas Leather Shop Las Vegas, Nevada Exporter is the Beneficiary -- the party in whose f