Pl tell how LC Documents are prepared?(Domestic and Export)
rgds
KK
tme s limted,bt drms r unlmtd (Mba ( fin.) Ca final Student) (257 Points)
24 May 2012Pl tell how LC Documents are prepared?(Domestic and Export)
rgds
KK
RAMESH KUMAR VERMA
( CS PURSUING )
(43848 Points)
Replied 25 May 2012
MAKE A REQUEST LETTER ADDRESSED TO BANK AS WELL AS IMPORT INVOICE, EXPORT IMPORT SALES CONTRACT/AGREEMENT/ BL AND OTHER DOCUMENTS AS PREFER BANK.
PLEASE READ LINK:
https://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.aspx
RAMESH KUMAR VERMA
( CS PURSUING )
(43848 Points)
Replied 25 May 2012
MAKE A REQUEST LETTER ADDRESSED TO BANK AS WELL AS IMPORT INVOICE, EXPORT IMPORT SALES CONTRACT/AGREEMENT/ BL AND OTHER DOCUMENTS AS PREFER BANK.
Import section of any bank deals with L/C opening and post import financing i.e. LIM & LTR. Now the procedure from opening L/C to disbursement against L/C is given below.
At first, an importer will request banker to open L/C along with the following documents.
1. An application
2. Indent or Performa Invoice
3. Import Registration Certificate (IRC)
4. Taxpayer Identification Number (TIN)
5. Insurance cover note with money receipt
6. A bank account.
7. Membership of chamber of commerce
Indent or Performa invoice is the sale contract between seller and buyer in import-export business. There is slight difference between indent and Performa invoice. The sales contract, which is direct correspondence between importer and exporter, is called Performa invoice. There is no intermediary between them. On the other hand, there may be an agent of exporter in importer’s country. In this regard, if the sale contract is occurred between the agent of exporter and importer then it is called indent.
After scrutinizing above-mentioned documents carefully, officer delivers the following forms to be filled up by importer and banker should check:
Whether the goods to be imported is permissible or not.
Whether the goods to be imported is demandable or not.
The forms are:
• Import Mercendised Permit Form (IMP).
• L/C Application Form (L/CAF).
• L/C Authorization Form (L/CAF).
Bank’s officer prepares L/C when above mentioned forms are to be submitted by customer or importer. Before preparing L/C SIBL officer scrutinizes the application in the following manner.
? The terms and conditions of the L/C must be complied with UCPDC 500 and Exchange Control & Import Trade Regulation.
? Eligibility of the goods to be imported.
? The L/C must not be opened in favor of the importer.
? Radioactivity report in case of food item.
Survey reports or certificate in case of old machinery is required. Bank of the importer is called ‘L/C Issuing Bank’. Then issuing bank inform it’s corresponding bank, called “Advising Bank’ or ‘Confirming Bank” located in exporter’s country to advice and the credit forward to the exporter and simultaneously officer makes L/C opening vouchers.
PLEASE READ LINK:
https://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.aspx
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