L/C (Letter of Credit)
L / C is an instrument issued by a bank on behalf of one of their clients, which empowers a person or a company receiving such instruments draw drafts on the bank concerned or on one of correspondent banks for the interest, according to the conditions / requirements specified in the instrument.
The function of L / C as follows:
- It is an agreement of banks in resolving international commercialtransactions.
- Provide security for the parties involved in the transaction are held.
- Ensuring the payment provided that the requirements of L / C are met.
- An instrument that is based only on documents and not on commodities or services.
- Helping issuing bank provide financing facilities to the importers and monitoring usage.
L / C (LETTER OF CREDIT) Import
Terms - conditions:
- Having Giro in Bank Jatim
- Guarantee deposits 100% of the nominal issuer L / C.
- API-licensed (Import identification number), APIT (limited importsidentification number).
Other costs:
- Opening of L / C = 1/8% X Nominal minimum $ 50,00 with the following notes:
- Defined KMPK for issuance of L / C Import.
- Defined by KMPK Credit Equivalent dollars
- Changes in L / C
- With the change in nominal = 1/8% X Nominal changes Minimum $ 50,00
- Without a change in nominal = USD 25,00
- Cancellation L / C = USD 5,00 + Bank Charges Koresp. + Cost of Telex.
- Warranty expenditures / Shipping guarante = USD 10,00
L / C (LETTER OF CREDIT) Export Terms - conditions:
- Having Giro in Bank Jatim
- Receiving L / C from Overseas Bank.
- Can export documents in negotiations or do billing on collection according to applicable regulations.
Other costs:
- Notification / redirection L / C for the customer = USD 15,00
- Change / Amendment L / C = USD 15,00
- Cancellation L / C = USD 15,00
- Alienation of L / C = USD 15,00
- The Commission negotiated document
- Sight L / C (Performance) = 1/8% X Nominal (min $ 25,00 max $ 150,00 and)
- Usance L / C (Futures) = 1/8% X Nominal (min $ 25,00 max $ 150,00 and)
- Transit time interest
- Export Notes Sight = SIBOR +6.5% after day 5.
- Export Notes Usance = SIBOR + 6.5%.
- Shipment Documents = appropriate courier fee.