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Import Letter of Credit


The Import Letter of Credit (L/C) is a settlement mode where ABC issues a L/C to the beneficiary upon receiving the customer's application, and promises to pay a specific amount to the exporter in the designated currency, after receiving the documents that comply with the L/C requirements within the specified time. Import L/C services include issuance (opening, altering, deregistering and cancelling L/C), documents processing (telegraphic notice, documents review and dishonor), and acceptance/promise of payment or deferred payment. ABC may open any type of L/C appropriate for the customer's needs, such as sight, deferred payment, acceptance, negotiation, transferrable, confirmed, revolving and back to back L/Cs.


1. L/C offers exporters a conditional commitment to payment in addition to the commercial credit, thus, enhancing the customers' credit standing and helping them secure a more reasonable price of goods.

2. L/C turns commercial credit into bank credit. The intervention of a bank provides additional assurance to trade by effectively controllingtitle to goods, time for shipment and quality of goods in accordance with relevant documents and terms and conditions.

3. L/C helps customers reduce money tied up during the period from opening the L/C to making the payment.


1. The customer applies to ABC to open an L/C by providing recent financial statements, business license, import and export contract, import license and registration certificate. The customer completes the L/C Opening Application Form and signs the L/C Issuance Finance Contract.

2. ABC issues the L/C to the exporter upon receiving the completed L/C Opening Application Form.

3. After documents are received and confirmed to comply with L/C requirements, the customer should promptly make the payment or acceptance/commitment to ABC, and ABC will then make the payment or acceptance/commitment.

4. If documents received show discrepancies, the customer should decide to accept or reject the documents, and ABC will make the payment/acceptance/commitment or dishonor the L/C accordingly.


1. In the first application, import and export approvals and the business license should also be provided for the opening of the margin account.

2. By opening an import L/C, customers provide additional assurance for the exporter's collection while incurring relatively high bank charges. Therefore, they may request the exporter to give a discount on price or other conveniences in return.
Note: Please contact your local branch for detailed information about the service.

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