L / C a single "3W" common sense, we must know

L / C documents produced, in the end where the documents submitted to it, there are many people do not know. In the circumvention of the confirming bank to pay a single case, if you encounter an issuing bank bankruptcy or unreasonable protest, as long as the delivery is still within the validity period of the L / C, the document can still be handed over to the confirming bank, Acceptance.

Who to pay (WHO)

L / C documents produced, in the end where the documents submitted to it, there are many people do not know. In general, when we pay a single to pay the issuing bank's designated bank. Such as 41A or 41D AVAILABLE WITH BANK OF CHINA, SHANGHAI BRANCH BY NEGOTIATION, then the nominated bank is BANK OF CHINA, SHANGHAI BRANCH. If the credit has been designated line, suggest that you follow the issuing bank's instructions, to pay the single line to the designated bank.

If the issuing bank does not require a specific bank to pay, we can pay the bill directly to the issuing bank, you can also pay their own bank to pay a single, to pay the transfer of the transfer of registration should be done to prepare for inspection, all submitted Documents, they must have a copy for future reference.

Here are some of the more common way to pay orders for your reference:

1. To pay the issuing bank directly

Before the documents arrive at the issuing bank, the credit risk of the documents to be borne by the beneficiary. And directly to pay a single, no other bank to help us pre-audit documents, have a higher probability of discrepancies. This form of payment, unless necessary, is not recommended.

2. To the designated bank to pay a single

Where the beneficiary pays the nominated bank as specified in the L / C, the entry of the corresponding documents into the nominated bank constitutes the payment responsibility of the issuing bank. As long as the designated bank strictly in accordance with the letter of credit provided by the way and line operations, documents in the mailing process of delay or loss risk by the issuing bank to bear. Even if the beneficiary lost the documents still have the right to claim the purchase price, the issuing bank still have to pay.

3. Make a presentation to the confirming bank

Where the beneficiary chooses to file a claim with the confirming bank in the event that the confirming bank under the issuing bank confirms the letter of credit, the confirming bank must comply with the sending instructions. If the beneficiary chooses to bypass the confirming bank and file the order with the issuing bank directly, it will need to execute the issuing instructions from the issuing bank.

If you send the bill directly to the confirming bank discrepancies, the confirming bank will generally refuse to pay first, then the confirming bank's confirming liability lapses. Therefore, it is necessary to ensure that the documents match directly with the confirming bank.

In the circumvention of the confirming bank to pay a single case, if you encounter an issuing bank bankruptcy or unreasonable protest, as long as the delivery is still within the validity period of the L / C, the document can still be handed over to the confirming bank, Acceptance.

4 to the bank to pay a single

When the beneficiary is not convenient to pay the nominated bank of letter of credit, the beneficiary may choose to pay the bill to his own bank for communication and financing. Because at this time to pay a single line of credit is not the designated bank, so the beneficiary need to bear the documents before entering the designated bank or issuing bank loss risk. If the pay bank in accordance with the instructions of the letter of credit to its nominated bank to pay the bill, the beneficiary to pay an additional bank charges.

The above four kinds of way is the most common four, we usually pay the second or fourth choice, because these two way for our exporters more convenient and safe.

When to pay (WHEN)

1. Confirmation of delivery time

Under normal circumstances, the letter of credit will pay the bill of lading set as the bill of lading within 7 days, 10 days or 15 days, etc., and some letters of credit stipulated delivery period is less than 5 days, the beneficiary at the time of receipt of the letter of credit Pay special attention to pay the bill time.

If the letter of credit does not require payment of a single time, then pay the bill of lading within 21 days after the bill of lading in the letter of credit and the latest due date, whichever is earlier, select the date of payment, that is That the date of delivery can not be later than the validity of the letter of credit.

2. pay the single grace period

When the latest one-day payment is not the working day of the designated bank, the delivery of the single delivery can be postponed to the first day of the designated bank's commencement of work, and the designated bank must indicate this fact in the letter of delivery.

For example: the bill of lading date is September 29, 2013, the letter of credit stipulated that the deadline for delivery of bills of lading is 5 days after the bill of lading, calculate the bill of exchange for the date before October 4, just our national day in China, the latest bill of lading is postponed After the National Day holiday, the bank opened the first day of business day.

3. To pay the completion of a single act

There are many exporters that as long as the documents delivered to the bank even if the completion of a single, or only the documents sent to the issuing bank to complete the transaction. This understanding is not quite right. To be able to complete the issuing bank's payment obligations be considered a single pay. It is not a matter of completing the payment of a single bank to a bank other than the nominated bank, and the non-bank nominee has to pay the bills to the nominated bank within the time limit and expiration date.

When the documents are submitted to the designated bank or issuing bank discrepancies found, the beneficiary to modify the documents and submit the correct documents, both need to be completed within the delivery date, or even modified all the documents discrepancies, but because of After a single pay period, which constitutes a new discrepancy.

Where to pay (WHERE)

The L / C will specify the expiration date and expiration date, but generally will not explain the exact location of the presentation. According to Article 6 of UCP600, the place where the issuing bank's nominated bank in the L / C is located shall be the place where the documents should be submitted.

In addition, due to the place of credit of the credit is very important for the beneficiary, so the expiry of the credit where the beneficiary is located, and provided for the credit where the beneficiary bank designated by the bank is necessary.