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Letters
of credit
To protect your company's business risk, a credit guarantee will mean
receivable / payable by the intervention of the banks in their processing.
A Bank (Issuing Bank) acting at the request and in accordance with the
instructions of the buyer / importer and is committed to a third party (the
seller / exporter) to pay, accept or negotiate documents drawing to submit
directly or through another bank intermediary. The Issuing Bank, to accede
to the request and issue the documentary credit, this assumes an irrevocable
commitment to pay / accept or negotiate bills of exchange, against delivery
by the Beneficiary of the documents agreed in advance and stipulated in the
previously order opening the credit.
The documentary credit is the safest method of payment used in international
transactions, since it is an instrument that gives confidence to the parties
involved: importer / exporter.
The bank deployed a technical operation and ensure the benefit of the
parties to an international contract of sale, providing development of the
purposes pursued by them in hiring.
The legal framework has been collected by the International Chamber of
Commerce and is formed by the Uniform Customs and Practice for Documentary
Credits, NEW BROCHURE 600, effective from July 2007.
References:
1. Contract
2. Opening of the L/C
3. Transmission of the L/C to the exporter's bank
4. Notification to the exporter in the L/C
5. Shipment of goods
6. Delivery of export documents
7. Payment to the exporter
8. Sending documents to the importer's bank
9. Reimbursements between banks
10. Delivery of documents to the importer pays
11. The importer withdraws merchandise duty
Reference - BBVA Frances Bank - Argentina
 info@mineralstrader.com
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