Documentary Letters of Credit used for centuries to facilitate payment in global trade deals. Mostly, LC Terms and Conditions governed by the ICC and UCP for Documentary Credits.
Letters of Credit acts as an agreement between a bank, known as an issuing bank; authorizing another bank called as advising bank. Further, this assures the payment to the seller, on behalf of the buyer. Also, due to the risks of trade deals such as trust issues, distance, different laws, and rules in each country; so, the use of this has become a vital aspect of global trade.
Further, by having MT700, buyers have the security via documents; since, that verifies the quantity of goods; before making the payment to the seller. Also, on the other side; sellers are assured that they will receive the payment. Also, only if they comply with the terms of the issued MT700.
The one who requests their bank to issue MT700 on their behalf. Further, they can be a buyer or an importer.
The bank which receives an MT700 from the buyer’s end. And further, they forward it to the seller.
Under an LC at Sight, it means payment is to be made upon submission of documents; as stated in the issued LC. Moreover, this acts as a popular method of payment for global trade.
Back to Back LC
A beneficiary of an MT700 opens up a new Letters of Credit from their bank; also, on the basis of the LCs they have received. Further, this helps the traders to continue their trade smoothly.
The Company in whose favor an MT700 issued. Mostly, in imports and exports, the seller is the receiver.
Bill of Lading
A document issued by a transport carrier; also, this shows the receipt of goods for shipment by sea, air, or by road to a certain place. Further, it also serves as the contract between the shipper and transport carrier.
Certificate of Inspection
A document states that goods were in good condition at the time of inspection. Also, pre shipment inspection is often required in global trade.
Certificate of Origin
A written statement by the Chamber of Commerce to verify the origin of goods. Moreover, this contains info about the product, its destination, and the country of export.
Further, this may confirm the LC to the seller. Further, upon request from the issuing bank; they obligated to make the payment; and this should under the issued MT700.
Deferred Payment LC
Payment under this is made a no. of days after shipment. Or, after the submission of documents after a period stated in the issued Letters of Credit.
The Trade terms defined by the ICC defines the duties of the sellers and buyers in global trade. Further, this specifies who is responsible for the shipment, insurance, customs, and other supply chain activities.
The Issuing Bank provides an assurance to the seller that they will receive the payment; also, this will be done; only if they submit the stated documents that comply with the T&Cs.
The Uniform Customs and Practice for Documentary Credits (UCP 600) defines a set of rules governed by the ICC. Further, this needs to be followed by all institutions which issue the Letters of Credit.
To avail MT700, you need to request your bank with your pro forma invoice. Further, they will perform the study on their clients’ credit score; and fiscal strength. Moreover, if the client meets all the terms; they will approve their request. Also, in case, if they didn’t; then the bank will say NO; to issue the MT700. In such a case, they may look for other options to avail MT700.
So, to help the clients to facilitate their imports, Bronze Wing Trading L.L.C., the LC Providers in Dubai works for you! Also, we provide MT700 to help importers to reduce their fiscal risk. Further, we help the traders to facilitate their trade with minimum investment.
Avail Letters of Credit – LC MT700 from us to get started your global imports!