Letter of credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2012 Whether Import LC for Procrement of Stock can be opend more than 180 days. If yes, what will be the procedre.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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12 January 2012 A REQUEST LETTER PRESENT TO BANK ALONGWITH INVOICE, PURCHASE ORDER :

The Import Letter of Credit guarantees an exporter payment for goods or services, provided the terms of the letter of credit have been met.

A bank issue an import letter of credit on the behalf of an importer or buyer under the following Circumstances

* When a importer is importing goods within its own country.
*

When a trader is buying good from his own country and sell it to the another country for the purpose of merchandizing trade.
* When an Indian exporter who is executing a contract outside his own country requires importing goods from a third country to the country where he is executing the contract.

The first category of the most common in the day to day banking

MORE INFO:

http://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.aspx

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