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Letter of Credit

1.Import Letter of Credit 

The Import Letter of Credit (L/C) is a settlement service where ABC NY Branch issues a L/C to the beneficiary upon receiving the customer's application, and promises to pay a certain amount of money to the beneficiary in the designated currency, after receiving the documents that comply with the L/C requirements within the specified time. Import L/C services include L/C issuance (opening, altering, deregistering and cancelling L/C), documents processing (telegraphic notice, documents review and dishonor), and acceptance/promise of payment or deferred payment. ABC may issue any type of L/C tailored to the customer's needs, such as sight, deferred payment, acceptance, negotiation, transferrable, confirmed, revolving and back to back L/Cs.


1. L/C service offers exporters a conditional commitment to payment in addition to the commercial credit, thus, enhancing the customers' credit standing and helping them secure a more reasonable price of goods.

2. L/C service turns commercial credit into bank credit. The intervention of a bank provides additional assurance to trade by effectively controlling title to goods, time for shipment and quality of goods in accordance with relevant documents and terms and conditions.

3. L/C service helps customers free up cash flow between the points of obtaining the L/C and making the payment.


2.Export Letter of Credit 

The Export Letter of Credit (L/C) is a L/C settlement service where ABC NY Branch acts as the exporter's bank in accordance with the documentary L/C opened by the importer's bank. Export L/C mainly provides services such as L/C advice, cancellation, transfer, documents examination, sending documents for reimbursement and collection of payment.


1. The issuing bank provides bank credit in place of the importer's commercial credit and makes a conditional commitment to payment.

2. Customers may obtain an unconditional commitment to payment from the issuing bank as long as they guarantee the quality of their documents, which is, in fact, under their full control.

3. The cost of issuing L/C should be borne by the importer.

4. Once customers have received the L/C, the importer has basically completed their formalities for import, ensuring the performance of the contract.

5. Customers may apply to ABC NY Branch for pre-export or post-export financing, with the export L/C and documents under the L/C.