Foreign trade companies, industry and trade companies, enterprises, foreign-funded enterprises and wholly foreign funded enterprises registered in China with import and export operation right.
Service function and content:
1. Issue letter of credit
2. Modify the letter of credit
3. Receive and audit the document under the letter of credit delivered from abroad
4. Make external payment, accept or propose refusal
5. Make import client capital settlement
6. Assist client in external inquiry
Transaction steps of letter of credit import business:
1. The importer shall submit the following materials to our bank
(1) Issuing application (sealed with official stamp and financial stamp)
(2) Import contract (agency agreement shall be attached for agency import)
(3) If the importer is responsible for goods insurance according to the import contract, the one that uses our bank’s credit or loan to issue, the issuing applicant shall submit the insured written certification before issuing.
(4) Domestic sales contract (if required).
(5) Effective voucher (if required): the import commodity or import unit is involved in the scope of Chinese import license management, such as license/registration certificate/mechanical and electric product registration form, processing with imported material for re-export registration manual, self-used material/original and auxiliary material approval license, etc.
(6) Import verification sheet (as the declaration)
(7) Import payment in foreign exchange record table (if required)
(8) Foreign exchange purchase application or foreign exchange payment application
(9) Other documents required by the bank
2. Import credit business flow
(1) Clients propos an application.
(2) Deposit full earnest money, deposit certain proportion of earnest money for applying for credit issuing.
(3) Document sent from abroad.
(4) Bank audits document.
(5) Notify enterprise.
(6) Enterprise pays or retires up bill after acceptance.
(7) Banks pays foreign exchange or accepts.
Financing under import letter of credit:
(1) Import bill advance, shipping guarantee, etc. The transaction of financing under relevant letter of credit can solve the short-term capital turnover difficulty of the client (see details in the chapter of international settlement financing).
(2) Relevant consulting business
Relevant regulations on Client’s Transaction of Import Credit Business:
1. Modification of letter of credit
The applicant can modify the content of issued letter of credit, however, the applicant cannot revoke the letter credit, and the modification can be made only after obtaining the approval of issuing bank, guaranteed bank (if any) and the beneficiary. If the modification exceeds the scope regulated by the original effective voucher, the effective voucher that conforms to the modification condition shall be submitted.
2. External payment (acceptance) date
The working hour of bank external payment or acceptance is within 7 working days as of the next day of receiving the document, if it has been accepted under the usance credit, the payment shall be made on the maturity day.
3. Acceptance refusal
It will be deemed that the applicant refuses to receive document if the applicant proposes refusal or fails to make any reply after receiving the document under the letter of credit, in which the remitting bank marks discrepancy or the issuing bank finds discrepancy in the document audit, and the bank will send the notice on acceptance refusal to the remitting bank within 7 working days after receiving the document.
4. Cancellation of letter of credit
No matter whether the letter of credit is paid, it will be calculated by the bank after exceeding the effective period for 3 months.
5. Revoking of letter of credit
When the letter of credit does not exceed the effective period, upon the approval of relevant party, and when the advising bank has confirmed to withdraw the original letter of credit, this letter of credit can be revoked.