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How to Open Letter of Credit (LC) ?

Definition of LC
LC is a abbreviation of full meaning. Which meaning is Letter of Credit (LC). Now I try know to what is meaning of letter of credit ? Actually letter of credit also know as a documentary credit or bankers commercial credit. Its is a payment mechanism which used in international trade to provide economics guarantee from a credit worthy bank to an exporter of goods.

How to Work Letter of Credit ?
If we want to know about for opening letter of credit first of all know follow chart for better understanding.

How to open Letter of Credit ?
Step: 01
  • Contract With Buyer & Seller.
  • Collect Proforma Invoice (P.I)
Step: 02
Now Apply to Bank for Opening Letter Credit along necessary papers.
  • LC opener Forwarding.
  • Proforma Invoice.
  • F27 / Checklist (All Back to Back Terms & Conditions Included here)
  • IMP Form 
Mandatory Necessary Papers or Information.
  • Trade Incense 
  • Tax Identification Number
  • ERC
  • IRC
  • Incorporation Certificate
  • Memorandam
  • NID for MD
NB: Mandatory Necessary Information or Papers Onetime Submit to Bank Till Renewal Expiration. 






1 comment:

  1. Dear Concern,
    I need BTB Lc related Bangladesh Bank circular such as, BTB LC open procedure, Documents prepared seal & sign and Bank Maturity letter.

    Thanks
    Md.Moniruzzaman

    ReplyDelete

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