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Import Letter of Credit (L/C)
Import Letter of Credit
1 Product Introduction

Import Letter of Credit (L/C) is a payment undertaking made by CMB in accordance with the application of the importer (L/C applicant) which is in favor of the exporter (L/C beneficiary), and is subject to the full margin or within the credit line granted by CMB. After receiving the documents conforming to the L/C terms, CMB will fulfill payment obligations under the L/C.

2 Target Customers

Any importer who prepares to effect payment via L/C.

3 Product Advantages

1、 Convenient and fast services: CMB has established correspondent bank relationship with nearly 2,000 banks in the world. When issuing L/C, we will choose the fastest routes for customers, and ensure L/C arrives at the beneficiaries as soon as possible.

2、 Simple application: The applicant can submit L/C application and documents proving trading background online via CMB’s Internet banking. The whole business processes can be finished online any time anywhere.

3、 Wide recognition: The creditability of the L/C issuing bank is critical in financing, The L/C issued by CMB is accepted globally, which is favorable to the exporter’s financing under the L/C.

4、 Various types of L/C: CMB can issue L/C that meets different trading needs of customers, such as transfer, reciprocal, back-to-back, payment at sight, deferred payment, and red clause.

5、 L/C within credit line: Customers with long-term business relation with CMB will no longer need margin when applying for L/C within the credit line granted by CMB. The fund occupation will be minimized and the trading cost will be lowered.

Export Letter of Credit
1 Product Introduction

Export L/C is a service whereby CMB makes notifications or transfers notifications on L/C from other banks in accordance with the Uniform Customs and Practice for Documentary Credits that are promulgated by the International Chamber of Commerce. According to specific requirements of L/C (including but not limited to CMB’s notifications), examine the conformity of documents presented by the exporter, and send the documents to the issuing bank or other nominated banks for settlement.

2 Target Customers

Any exporter who prepares to use documentary credits as a method of settlement.

3 Product Advantages

1、 Guarantee on payment for exported goods. L/C is backed by banks. After documents are presented as per L/C, the issuing bank is obliged to effect payment.

2、 Facilitating trade finance. If the documents are in conformity, the exporter may apply for export negotiation at CMB, so as to be free from any restriction in terms of quota, guarantee or mortgage. In addition, the exporter can also apply for forfaiting.

All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.