Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
Here are the typical steps of an irrevocable letter of credit that has been confirmed by a U.S. bank:
1.After the exporter and buyer agree on the terms of a sale, the buyer arranges for its bank to open a letter of credit that specifies the documents needed for payment. The buyer determines which documents will be required.
2.The buyer's bank issues, or opens, its irrevocable letter of credit includes all instructions to the seller relating to the shipment.
3.The buyer's bank sends its irrevocable letter of credit to a U.S. bank and requests confirmation. The exporter may request that a particular U.S. bank be the confirming bank, or the foreign bank may select a U.S. correspondent bank.
4.The U.S. bank prepares a letter of confirmation to forward to the exporter along with the irrevocable letter of credit.
5.The exporter reviews carefully all conditions in the letter of credit. The exporter's freight forwarder is contacted to make sure that the shipping date can be met. If the exporter cannot comply with one or more of the conditions, the customer is alerted at once.
6.The exporter arranges with the freight forwarder to deliver the goods to the appropriate port or airport.
7.When the goods are loaded, the freight forwarder completes the necessary documentation.
8.The exporter (or the freight forwarder) presents the documents, evidencing full compliance with the letter of credit terms, to the U.S. bank.
9The bank reviews the documents. If they are in order, the documents are sent to the buyer's bank for review and then transmitted to the buyer.
10.The buyer (or the buyer's agent) uses the documents to claim the goods.
11.A draft, which accompanies the letter of credit, is paid by the buyer's bank at the time specified or, if a time draft, may be discounted to the exporter's bank at an earlier date.
