Letter of Credit

what Is Letter of Credit?

Letter of Credit is an irrevocable undertaking given by a bank whereby it undertakesto honour a presentation of documents

submitted in accordance with the terms and conditions of the documentary credit and in compliance with UCP 600 and ISBP 745 .

What Types of Letter of Credit We Deal?

  • Transferable Letter of Credits
  • Back-To-Back Letter of Credits
  • Red Clause Or Advance Payments Letterof Credits & Green Clause Letterof Credits
  • Revolving Documentary Letterof Credits

Who are the parties involved under Letter of Credit?

  • Issuing bank
  • Advising bank
  • Nominated bank
  • Confirming bank
  • Beneficiary

How Does The Letter of Credit Works

The Buyer and Seller agree on the sale terms and come into the contract encompassing the type of products, delivery

schedule, mode of payment etc. After this, buyer arranges for his bank (Issuing Bank) to open a Letter of Credit in favor of the supplier/seller.
The seller then ships the goods and obtains the documents relating to the shipment, such as the commercial invoice, transport document, certificate of origin, Insurance Certificate, etc. After Issuing Bank receiving all documents as per Letter of Credit terms and conditions. The buyer has to make the payment to bank and will receive the documents, which will make him to take the shipment into possession.

We offer under Letter of Credit

  • Reviewing Letter of Credit terms & conditions as per Uniform customs practice UCP 600 & International standard banking practice (ISBP 745).
  • Providing technical support to advice Letter of Credit.
  • Providing Draft Letter of Credit based on the client requirement of underlying sales agreement/contract.
  • Removing/ incorporating necessary clauses under Letter of Credit terms & condition which is protecting exporter in getting delay of payment.
  • Removing/ incorporating necessary clauses under Letter of Credit terms & condition which is protecting Importer in securing the payment
  • Preparation of Beneficiary documents under Export Letters of Credit
    • All types of Beneficiary related document we can prepare such as Proforma Invoice, Provisional Invoice, Tax Invoice, Commercial Invoice, Bill of Exchange/ Draft, Beneficiary Certificates, etc.
  • Checking documents against Export Letter of Credit terms and conditions.
  • ACS handles critical step in removing discrepancies appropriately to assist the customers in getting payment on time from the opening bank..

ACS work flow of Letter of Credit
Letter of Credit Process

Leave Us Your Info

and we will get back to you

┬ęcopy rights 2019 ACS. All Rights Reseverd.