Credit obligation of the seller to the buyer, and the Bank is given.
The obligation of the buyer’s payments, which amount to the seller in time and with correct amount into the hands of the seller. whenever the buyer is not able to pay the amount of the purchase, the Bank is obliged to pay the remaining purchase amount or all. credit is often in international transactions in order to ensure receipt of sums paid will be used
Due to the nature of international transactions that include factors such as the distance and the difference in laws e. .. A very important aspect of the l/c, in international trade. The Bank also gave several of the buyer which is a preservative found in credit until confirmation that the goods have been purchased to carry funds won’t pay.
1. ensure the seller shipped the documents after the provision of the funds in accordance with the terms of the credit broker or credit from the Bank confirming receipt.
2-possibility to control on the carriage and delivery of the final product.
3. the study of the initial agreement in accordance with the provisions of the transport documents under the terms of the contract between the parties
4. ensure that the validity of the payment to the seller only after the transfer of ownership of the goods of his jaw and face.
5-ability to earn more credit facilities for the seller in front of the opening to the preparation of the order goods
6. the obligation of the Bank to pay a surcharge on transactions instead of individual seller
In the case of credit from different directions, there are divisions, most notably the following:
In relation to credit in Iran should be reminded that due to the constraints imposed by the Central Bank of the types of these funds useless in Iran or need to get a license by the Central Bank.
Types of credit
1-import or export credit:
Credit to the buyer for import to your country imported and the opening credits of this credit in terms of the seller of goods who is located in another country of the export credit.
2. Revocable l/c reversible: L/C
In this type of credit, the buyer or a bank credit without informing the beneficiaries can be opened, any change or create credit in terms of correcting (without the permission of the seller)
It is clear from these types of uses does not have much credit because the seller is required to ensure sustained credibility and buyer’s obligations do not stay.
Surprisingly, if the buyer wishes to the Iranian banking system credit reversible opening of special permission of the Central Bank, he appreciated while credit demand irreversible need to license.
3-non-refundable credit: Irrevocable L/C
In irreversible credit any credit from the buyer’s circumstances change or an opening bank credit agreement and subject to the consent of the seller. The vendors are usually of such credits are more welcome.
According to the latest International Chamber of Commerce rules if it is not stipulated in the credit, and the silence on the reversible or irreversible, it is irreversible.
4-approved credit: C/L Confirmed
Requires that the buyer credit is a credit issued to your bank to verify by any bank other reputable seller desire, Koch. this type of credit ensuring the dignity of not having to bank credit issuer or political or economic situation shaky buyer.
Now, many foreign retailers approved credits of Iranian buyers demand that this is an issue for two reasons, firstly the political and economic situation, but in the years after the second Iran-Iraq war due to a shortage of currency in the country’s banking system, the Central Bank opened the credit to buyers to Amani encouraged while the Central Bank credits at the time of maturity is the ability to pay the amount of the credit that was causing a delay in the payment of the amount of long term credits to Vendors that causes distrust Iranian banks to the vendors.
5 credit–unconfirmed: Unconfirmed L/C
This type of credit in the ordinary circumstances and without approval of the Bank opening another. If the word is not mentioned in the terms of credit Confirmed it is deemed not credit approval
6-transferable credit: Tranferable L/C
To its credit, the beneficiary under said that the principal has the right to all or part of the opening credits to the person or people. In fact, this type of credit is considered a privilege for the seller
7-non-transferable credit: Untransferable L/C
To the right of the beneficiary gets the assignment of credit, said the whole or a part of it to another. The Convention on international trade on being non-transferable credits and also for the opening of credit transferable need to license the Bank.
8-credit Amani or Usance period: L/C
Is that the way the validity of credit immediately after g اایه documents the beneficiary does not pay, but pay it, after the designated period for the buyer to the seller. in fact, the deadline that the price the goods after receiving and selling it. Amani trading usually done in countries that lack of Exchange.
9-credit At Sight: Visual C/L
According to the Bank’s credit that it’s a notification after the visibility offered to carry documents on behalf of the beneficiary (seller), in the case of the observance of the present circumstances of all the credit she immediately to pay its way.
10-credit back to back: Back to Back L/C
Credit of this type consists of two separated validation. The first credit in favour of the beneficiary, which finds an opening for any reason will be able to prepare and send the goods. Therefore relying on the credit in favor of another, he is credited for opening the second seller (beneficiary) that
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