Export letter of Credit

-Export settlement tool with lower risks

WHATWhat is export letter of credit?
A series of service provided to the exporter by the bank in exporters country after it received L/C from issuing bank,
including advising L/C, taking up and examining documents, presentation, reimbursement etc.
The contents of export L/C include checking up the authenticity of export L/C and amendment of L/C, advising the
domestic exporter; transfer L/C, examining transport documents surrendered by the exporter and presentation of
documents ; deal with trade financing such as negotiating, bill purchase, discounting on the request of clients;
forward-sold of exchange in RMB; inquiry, urging, recourse short payment and interest, by-sending documents;
check the credit of importer.
WHYWhy to choose export letter of credit?
Lower risks - bank credit of the issuing bank replaces commercial credit of the importer, the issuing bank provides
undertaking of conditional payment to exporter;
High initiative - exporter will obtain the undertaking of unconditional payment from the issuing bank as long as the
exporter can guarantee the quality of documents which is completely under control of the exporter;
Fee transfer - banking charges such as opening L/C etc. are usually for the importers account.
WHENWhen to choose export letter of credit?
The exporter has no awareness of or confidence in the credit status of the importer and needs additional undertaking
from the importers bank;
Needs to apply to the local bank for packing loans, so as to finance preparing for the goods to be exported.
HOWHow to handle export letter of credit operation?
The Operation flow

Attentions:
1.When discussing business terms with importer, soft clauses L/C should be avoided. At the same time a safe and
convenient way of reimbursement should be confirmed to guarantee a safe collection of payment;
2.Before the negotiating bank examines documents, the exporter needs to present: a. full set of documents stipulated
in L/C; b. Origin of L/C;
3.If insisting on sending documents with discrepancies, it is difficult to handle trade financing;
4.The bank will deal with operations such as collection of payment, settlement of payment, credit account according
to the state regulations concerning foreign exchange control;
5.If exporter wants to withdraw L/C, he needs to present: a. trust instrument in written form; b. full set of original
L/C.
ADVANTAGESthe advantages of Bank of China
Predominant reputation BOC has a long history of over 90 years and has been awarded the Best Bank in
China by Euromoney for successively 8 times. With the progressively improved system of corporate governance,
overall integration of operation flow, wholly-upgraded service efficiency and rich financial products, BOC has
continued to advance toward its goal of becoming a leading universal international bank;
Client first To provide clients with the most efficient service in shortest period is our continuous aim;
First-class professional service BOC, as the first bank in china to provide international settlement business, has
absorbed a pool of talented experts. The bank has maintained the largest share of the domestic market and has always
been the best against its Chinese peers in this regard;
Overall services Provide direct investigation or consulting service including credit status of the importer and
issuing bank, the risks of the import country, the going trend of the products in the international market, terms of L/C,
quality of documents, foreign exchange control, financing policy etc;
Effectively risk-evading system The first bank in china to offer Renminbi forward purchases and sales for
foreign exchange, BOC accumulated rich experiences in helping the clients to dissolve overall exchange risks.
Safe and timely clearing business With four major clearing center, that is US dollar clearing center- New York
Branch; Hong Kong dollar clearing center- Bank of China (Hong Kong); Euro clearing center -Frankfurt Branch and
Japanese yen clearing center-Tokyo Branch, BOC stands as the leader in domestic market for foreign currency
clearing businesses;
Advanced technology level BOC became one of the first bank to participate SWIFT in 1993. Sophisticated
SWIFT system provides our clients with robust guaranty of convenient and high-speed collection service.
Global network With 12529 domestic branches, 560institutions scattered in Hong Kong, Macao and oversea
areas and nearly 4000 agency banks, BOC, exclusively in domestic market, has established a multi-nation and multilayer high-speed global payment network established through 90 years accumulation;a