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Opening L/C (Letter of Credit)
Korea Exchange Bank evaluates an importer's credit, mortgage and conditions of an LC and opens a 'Letter of Credit' in accordance with an importer's request. |
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Required Documents
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Application for Irrevocable Documentary Credit |
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Offer sheet or Contract document |
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Insurance Document (required if price terms are either FOB or CFR) |
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Import Agency Contract (required if an import agency acts on behalf of an importer), etc. |
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Important
Please be sure whether such conditions below are not included in a 'Letter of Credit'.
Conditions or terms as specified below require measures for preservation of claims |
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Forwarder's Cargo Receipt Acceptable Conditions
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House Airway Bill Acceptable |
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The Consignee of the bill of lading or the airway bill is an importer |
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Conditions or Terms specifying that the consignee of the bill of lading or the airway bill is an importer |
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Conditions or terms specifying that some parts of the original copy of the bill of lading should be sent to an importer |
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Unfair conditions or terms that UCP cannot be applied to |
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Amendment to L/C conditions and terms
Parties concerned agree to change some conditions and terms in the initial L/C. |
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Required Documents
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Application for Amendment to Irrevocable Documentary Credit |
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Offer Sheet or Contract including such amendment |
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Issuance of the Copy of L/C |
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KEB (the issuing bank) sends the copy of L/C to an advising bank and the applicant after completing procedures for opening or amending an L/C.
Please closely check conditions and terms of L/C issued and ask KEB to correct any discrepancy on L/C (if there are any discrepancies).
Please keep it mind that negligent confirmation causes grave consequences and legal controversy between the parties involved.
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Issuance of Letter of Guarantee (L/G) |
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KEB (the opening bank) issues a 'Letter of Guarantee' with joint signs by the applicant and KEB where goods shipped have already arrived prior to the arrival of the shipping documents.
The applicant present it to the shipping company for the clearance of the goods imported.
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Notice of Arrival of Import Shipping Documents |
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The negotiating bank has sent shipping documents to the opening bank after negotiation or payment of credit amount for shipping documents.
KEB (the opening bank) should confirm whether the shipping documents are compliant with the L/C conditions. Afterwards, the opening bank notifies the importer (the applicant) of the arrival of shipping documents.
KEB is entitled to refuse to settle payment if there are discrepancies between shipping documents and L/C.
Please keep it mind that the imports backed up by an L/G can not be treated as 'dishonored'.
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Settlement of Import Documents
Do you get a notice of arrival of shipping documents from the opening bank?
If you say yes, please follow the instructions below. |
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Settle payment within 7-business-day
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Present a receipt of shipping documents
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Receive shipping documents and bill of lading
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Get goods from a shipping company
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Go through Customs Clearance
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