Sunday 20 Aug 2017
LCs

LCs

Documentary Credits

Documentary credits (or Letters of Credit) is a method to guarantee payments, through which the bank undertakes to pay to the seller of goods or services a specified amount, provided the required documents showing that goods have been shipped or services have been rendered on the agreed dates, are presented by the seller.
Opening sight L/Cs for Import of Goods
Persons who are authorized to open L/C 
All natural and legal persons
Type of goods
All authorized merchandizes as per the Import and Export Code,
Proceedings 
- The applicant must refer to the relevant ministry and present the P/I and receive the goods import permit,
- The applicant must refer to the Ministry of Commerce and receive the goods import permit,
Note: It is obligatory to carry out the tender formalities or present the license for abandonment of tender formalities for governmental purchases with the value of above USD one million.
- Examine the customer’s creditability, issuance of credit resolution and setting the rate of required down payment,
Note: The volume of down payment for importing all goods by the ministries and public establishments who use public budget is 100 percent of the credit on the opening date,
- The applicant must pay the costs for opening L/C,
- Opening L/Cs through sending a Swift message,
- Transporting of goods and receiving the shipment documents from the agent,
- Paying the difference of the required fund up to the initial down payment by the customer, endorsement and delivery of the documents to the customer for clearing of the goods,
Persons required to open L/C
All importers including manufacturing and commercial companies who import goods, raw materials, spare parts, machineries for the production lines and services, may open refinance L/C by using maximum one-year interbank credit lines.
Persons allowed
Natural and legal persons including manufacturers and businesspersons with a credit record of maximum 5 years, producers and importers of drugs, pharmaceuticals, auto manufacturers and spare parts producers,
Authorized Goods 
Goods, raw materials, spare parts, machinery of the manufacturing lines and services importable to the country,