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Advance Payment Transfer

International trade service for small export transactions/Advance Payment L/C allows a special drawing right to the seller to collect payment before presentation of shipping documents.

Product Features
ImportExport
Goods shipped at seller conveniencesMore favorable to the exporters to start manufacturing or ship the goods.
Payment is received prior to the transfer of ownership of the goodsAvoid financial problem to the exporter and gain working capital for selling of goods.
Buyer shall not make any payment until they receive the goods.Exporter can eliminate credit risk or the risk of non-payment
Allows the buyer to import goods at relatively lower finance cost.
Establishing of a new relationship with a minimum cost.
Basic Requirements
ImportExport
Duly filled, Signed and stamped Import application formDuly filled, signed and stamped export application form
Performa invoice including full description of goods, unit price, quantity, mode of shipment, terms of payment, place of deliveryDuly signed contract by buyer and seller
Valid and renewed Foreign Trade, Investment, Industry, Agriculture or Mining LicenseValid and renewed Export/ Manufacturing/Industry License
Tin CertificateTin Certificate
Title certificate for used vehiclesUndertaking letter that the sight CAD will be settled within 90 days
Third party original price confirmation for used commodities/vehiclesForeign inward remittance received and credit advice generated by DB
Insurance certificate with sum insured not less than 110% value of the consignmentForeign cash note deposited to the Exporter’s account which shall be accompanied by customs declaration
Letter of undertaking not to ship the goods prior to foreign exchange approval and to import the goods within 120 days from the date of approvalPurpose of payment and beneficiary name should clearly be stated on the credit advise
Application letter for the transferCustomer’s name should not appear in delinquent list of NBE
Customer’s name should not appear in delinquent list of NBE

Documentary Letter of Credit / Banker’s Commercial Credit

A letter of credit (LC), also known as a documentary credit or banker’s commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide a guarantee from a credit worthy bank to an exporter. It is a commitment by a bank on behalf of the importer (buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stated in the LC been met, as evidenced by the presentation of specified documents.

Product Features
  • The issuing bank makes payment to the beneficiary or exporter against the receipt of complying stipulated documents.
  • The bank’s obligation to pay is solely conditioned upon the seller’s compliance with the terms and conditions of the LC
  • The exporter usually expects the buyer to pay the charges for the letter of credit
  • Payment is made on the basis of documents
  • Protect the interests of both buyer and seller
  • Payment is effected immediately or at a later date
  • Both Banks deal in documents only, not goods.
Basic Requirements
Import PermitExport Permit
Duly filled, Signed and stamped Import application formExport permit application form duly filled, signed & stamped (as appropriate) by the customer.
ICB (International Competitive Bid) documents for imports value 1,000,000 USD or moreDuly signed contract by seller & buyer
Performa invoice including full description of goods, unit price, quantity, mode of shipment, terms of payment, place of delivery Authenticated message of L/C
Insurance certificate with sum insured not less than 110% value of the consignment Authenticated message of L/C
Valid and renewed Foreign Trade, Investment, Industry, Agriculture or Mining LicenseExporter’s invoice
Tin CertificateValid and relevant Export/Manufacturing/Industry License
Third party original price confirmation for used commodities/vehiclesTax identification certificate (TIN certificate)
LC opening application formThe L/C should be irrevocable & confirmed*
Customer’s name should not appear in delinquent list of NBECustomer’s name should not appear in delinquent list of NBE
Undertaking letter to repatriate the amount within 90 days form the approval date except for cut flowers for 30 days
Deferred/Acceptance period should be within validity date of L/C*

Cash Against Document (CAD) / Inward Bills for Collection(IBC) / Documents against Payment (DP)

CAD: A payment arrangement in which an exporter instructs a bank to hand over shipping and title documents to the importer when the importer fully pays the accompanying bill of exchange or draft. Also called documents against payment.

DP: Documents against Payment (DP) A buyer is required to pay a seller’s sight draft in order to obtain shipping documents. Payment is made on presentation of the sight draft by a bank to the buyer, usually one or two weeks after shipment.

Product Features
  • It involve using a bill of exchange (commonly known as a draft) that requires the importer to pay the face amount either At sight (document against payment [D/P] or cash against documents [CAD]) or On a specified future date (document against acceptance [D/A] or cash against acceptance).
  • The exporter retains control over the goods until the importer pays the draft amount at sight or incur a legal obligation to pay at a specified later date.
  • Allows the importer not to pay for goods before shipment.
  • The collection cover letter gives instructions that specify the documents required for the delivery of the goods to the importer.
  • Offer no verification process and limited recourse in the event of non-payment
Basic Requirements
ImportExport
Purchase order in two originalsDuly filled, signed and stamped export application form
Performa invoice including full description of goods, unit price, quantity, mode of shipment, terms of payment, place of deliveryDuly signed contract by buyer and seller
Insurance certificate with sum insured not less than 110% value of the consignmentValid and renewed Export / Manufacturing / Industry License
Valid and renewed Foreign Trade, Investment, Industry, Agriculture or Mining LicenseTin Certificate
Tin CertificateUndertaking letter that the sight CAD will be settled within 90 days
Title certificate for used vehiclesCustomer’s name should not appear in delinquent list of NBE
Third party original price confirmation for used commodities / vehicles
Customer’s name should not appear in delinquent list of NBE
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