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Confirmation of L/C

Overview

The Confirmation of L/C is a commitment made by ABC, at the request of customers (as the beneficiary) or the issuing bank, to undertake such obligations as independent payment, deferred payment, acceptance or negotiation to the beneficiary of an irrevocable L/C.

Features

Confirmation by ABC provides additional credit assurance to reduce bank or country risks when customers are not familiar with the issuing bank or its country or region, thereby offering double payment protection.

Procedures

1. ABC adds confirmation to export L/C upon completion of application by the customer or the issuing bank.

2. The customer submits documents to ABC, and ABC then examines those documents. If any discrepancy is found within the documents, ABC will advise the customer to replace them immediately. When the conformity of documents has been confirmed, ABC will make an irrevocable commitment to the payment.

3. ABC sends documents to the issuing bank for reimbursement, and the payment received from overseas will be used to reimburse ABC.

Tips

1. We suggest that customers avoid "soft clause" L/C when negotiating with the importer, and identify a safe and quick reimbursement route to ensure secure collection of payment.

2. For document examination, customers need to submit: Contact Form of Documents Presentation; a complete set of documents under the L/C; and the original of L/C.

3. Interest rate relating to L/C confirmation depends on the credit standing of the issuing bank.
Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599

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