Difference Between Letter of Credit and Bank Guarantee A Letter of Credit (LC) and a Bank Guarantee are both financial instruments used in international trade and business transactions to mitigate risks, but they serve different purposes and function differently. 1. Purpose Letter of Credit (LC): An LC is primarily used […]
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What is Letter of Credit ? Type and Parties involved WHAT IS LETTER OF CREDIT? L /C is an undertaking given by a Bank on behalf of its customer to pay a certain sum of money to a certain person ( Beneficiary ) on the fulfillment of certain terms and […]
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Step of Letter of Credit Opening Step One: If any importer wants to open a L/C, the importer is to be a customer of the bank and the importer will maintain a Current Account. Step Two: Importer submits an application requesting for opening L/C for US$. …….. for import of […]
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Discrepancies of Letter of Credit Common discrepancies in the export documents Claused/unclean/foul/dirty Bill of Lading. Charter party/stale/third party Bill of Lading (Unless stipulated in the letter of credit ) ON BOARD notation in B/L updated/unauthenticated. Shipment effected from the port other than that stipulated in the credit. Goods shipped on […]
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