Most popular letter of credit irrevocable document

[letter of credit] - irrevocable documentary credit (public negotiation)

(I) unrestricted negotiation

public negotiation is also called free negotiation. Generally speaking, the word "free negotiation" must be indicated in the negotiation terms of the letter of credit

however, some letters of credit do not contain such words, but contain "invitation" or "order" public negotiation terms

the letter of credit issued by the issuing bank expresses its function of public negotiation through its undertaking clause or guarantee clause

all the following commitments listed in the letter of credit are public Negotiation:

1. This bank (the issuing bank) guarantees to the drawer, endorser and legitimate holder that all drafts drawn in accordance with the terms listed in this letter of credit will be paid at the time of submission

we (is cutting and abrasive wear particles uing bank) here by engage with the drawers, endorsers and bona - fit holders of draft (s) draw under and in com pliance with the terms of the credit that such draft (s) shall be due honed on due presentation and delivery of documents as specified

2. Where a bill of exchange is drawn and presented in accordance with the terms of this letter of credit, the bank guarantees that it will be accepted and paid by its drawer, endorser and legitimate holder at the time of presentation

Provided such drafts are drawn and presented in accordance with the terms of this credit, we hereby engage with the drawers, endorsers and bona - fide holders that the said drafts shall be duly honoured on presentation.

3. If the draft issued under this letter of credit complies with the terms listed in the letter of credit, its drawer, endorser, and legitimate holder shall present it to the negotiating bank for negotiation before the 19th month of the year when the 4.5 ton rotating plate mold has a cavity, and the issuing bank guarantees to pay the bill price when the document is submitted

We hereby agree with the drawers，endorsers and bona-fide holders of drafts drawn under and in compliance with the terms of this credit that the same shall be duly honoured on due presentation, and negotiated at the Negotiating Bank on or before, 19＿＿＿。

4. The bank agrees with the drawer, endorser and legitimate holder that all drafts drawn in accordance with the terms of this letter of credit should be presented to the bank. The ticket payment will be paid upon maturity

We hereby agree with the drawers, endorsers and bona - fide holders of drafts drawn in compliance with the terms of the credit that such drafts shall be duly honoured on presentation and paid at maturity.

sampe Shanghai Branch's terms of invitation for public negotiation refer to the guarantee or commitment made by the issuing bank or the paying bank. Where the drawer, endorser or legitimate holder of the bill holds the bill issued in accordance with the terms of the letter of credit, the paying bank will pay at that time. This clause refers to the general, open and free negotiation written invitation issued by the paying bank to the holder. Generally speaking, the banks that issue open negotiation letters of credit are those with good reputation, simple procedures and low bank charges

all beneficiaries who issue bills of exchange for public negotiation will inevitably receive foreign exchange. Adopting the method of public negotiation gives the drawer greater freedom to choose the negotiation bank, and the settlement of foreign exchange collection is relatively fast and convenient

identify the functions of open negotiation, restricted negotiation and non Negotiation:

any letter of credit that does not indicate the words of open negotiation or restricted negotiation in the letter of credit is regarded as a straight credit for payment and withdrawal, and no bank is allowed to negotiate. This kind of letter of credit is called non negotiation letter of credit

according to what regulations does the issuing bank stipulate, under the terms of the letter of credit, the draft issued by the beneficiary can:

open negotiation, that is, any bank is welcome to negotiate:

limited negotiation, that is, only a named bank is limited to negotiate

negotiation is not allowed, that is, no bank is allowed to negotiate, and only the paying bank is allowed to pay and withdraw documents

as for the three methods, which one is appropriate depends on the actual situation of the importer's capital turnover, the reputation of the issuing bank and the negotiation method agreed by both importers and exporters through negotiation

if the issuing bank is a reputable and well funded famous bank, and the letter of credit issued is in the form of public negotiation, any bank can negotiate, expand banking business and charge bank fees

if the issuing bank wants to master the document review and reduce the risk, it will appoint its sub handling bank and agent bank to handle it strictly, but the letter of credit issued by the issuing bank generally adopts the method of limited bank negotiation

if the importer has deposited the money to be paid into the bank where the exporter is located (such as the notifying bank), the letter of credit issued by the issuing bank should generally adopt the method of payment and redemption under the direct letter of credit, so as to reduce the turnover procedures of bills of exchange and documents and save bank expenses

functions of direct letter of credit:

1 The bank agrees with your company (Beneficiary) that all drafts and documents drawn in accordance with the terms of this letter of credit shall be paid when they are due to be submitted to the paying bank

We hereby agree with you （Beneficiary） that all drafts drawn under and in conformity with the terms of this credit will be duly honoured on presentation and on delivery of documents as specified to the Drawee bank。