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  • Application For Irrevocable Documentary Credit (dc) - Hsbc

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To: HSBC Bank Middle East Limited Application for Irrevocable Office: Documentary Credit (DC) DC No: 1. Applicant (Name, address and commercial registration number): 2. Date: (For Bank use only) 4.

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A Documentary Credit (“D/C”) also known as Letter of Credit (“L/C”) is a method of payment where the buyer's bank guarantees payment to the seller with the condition that the seller has to fulfil the terms specified in the L/C.

Documentary credit (or letter of credit) is a method of payment that facilitates and secures international transactions. In practical terms, a bank undertakes, on behalf of its client (the importer), to pay a beneficiary (the exporter) the price of goods or services within a specified time.

An irrevocable letter of credit (ILOC) is a guarantee for payment issued by a bank for goods and services purchased, which cannot be cancelled during some specified time period. ILOCs are most commonly used to facilitate international trade.

Parties Involved in a Documentary Credit Issuing Bank: The bank that issues the credit on behalf of the buyer. Beneficiary: The seller who will receive payment under the credit. Advising Bank: The bank that advises the beneficiary of the credit's issuance.

Steps for Opening a Documentary Credit Signing of the contract between the Exporter and the Importer. ... Request for the Opening of a Documentary Credit. ... Issuing of the Documentary Credit. ... Notice of Confirmation or Rejection of the Documentary Credit. ... Shipping of Goods. ... Remittance of Documents. ... Sending of the Documents.

The buyer signs a contract with the seller envisaging LC-based payments. The buyer's bank (the issuing bank) opens a letter of credit and sends it to the seller's bank (advising bank) or to a confirming (executing) bank (in case of a confirmed letter of credit) for further dispatch to the beneficiary.

How documentary credit works Contract is signed between buyer and seller, stipulating that payment is to be made by documentary credit. Buyer requests a documentary credit be issued. ... Buyer's bank verifies buyer's creditworthiness. ... Buyer's bank issues documentary credit. ... Seller's bank examines documents.

Let's get a better understanding of how this whole process works. A step-by-step guide to understanding Export Documentary Collection. ... Agreement of terms: ... Shipment and receipt of documents: ... Presentation of documents to the bank: ... Receipt of payment from the importer and possession of goods:

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232