I. Introduction When your company is not comfortable with the financial standing of the L/C opening bank or wishes to apply export tax rebate or export exchanges cancellation using ICBC fast and convenient export finance service, then submits the original L/C advised through ICBC and request for L/C confirmation. Once your company ships out all the goods under the L/C confirmed by ICBC and submits all the clean bills to ICBC, ICBC will undertake to pay.
II. Features and Advantages 1. Help you to avoid the country risk and FX control risk in the country of the L/C opening bank. ICBC assumes the obligations and liabilities to pay should the L/C opening bank defaults in payment. You have nothing to worry. 2. Relieve your financial burden. You get the final payment in the shortest time and increase your cash inflow for the current period.
III. Target Clients When you receive L/C, you worry about if you can get the payment after the goods shipped out since you are doubtful about the credibility of the L/C opening bank, and more, the political turmoil in the country or region where the L/C opening bank is located.
IV. Operation Guide 1. Sign Letter of L/C Confirmation, and L/C Confirmation Cooperation Agreement, if necessary; 2. Once the goods are shipped, enclose the "L/C Advice" when submitting the documents to ICBC first time.
V. FAQ 1. Interest rate depends on the credibility of the L/C opening bank; 2. If the L/C opening bank rejects to make payment for a reason related to fraud or by the order of the Court to stop payment, ICBC will claim back the L/C amount and interest from you.
VI. Statement Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final rights of interpretation. Refer to the announcements and regulations of local branches for further details.