May I ask about the revolving letter...?

Question: May I ask about the revolving letter of credit and its advantages and disadvantages for importers and exporters?
Answer:

Recirculating L / C is an irrevocable letter of credit whose value is reproduced many times as soon as the previous payment obligation is fulfilled. Recirculated letters of credit are often used in payments with familiar customers, with a stable quantity and category of goods sold for a long time. The advantage of a circular letter of credit is that the buyer only needs to open 1 L / C for both the order and the exporter does not have to wait for a new letter of credit.
Pros: The use of L / C is a secure payment method because there is a third party (credit institution / commercial bank) to pay for the buyer, so the risk of not paying the seller It is very difficult because opening a letter of credit is a complicated witnessing process itself
Disadvantage: Periodic L / C is quite long (several years), and periodic L / C is a non-cancelable (irrevocable) L / C, so using periodic L / C should also accept the Company's financial risks, while still having to import goods when the situation of enterprises or markets causes instability
Bài viết khác
PROCEDURES FOR IMPORT OF GROSS ALCOHOL, IMPORTED ALCOHOL STAMPS, SPECIAL CONSUMPTION TAX 31/07/2020 15:45 We plan to import dispensed liquor, put in big drums - 200 L / drum to Vietnam, then extract, bottle and label in Vietnam to sell on the market. So: - When doing import, the company needs to do the procedures and prepare what documents? - What is the procedure to buy imported wine stamps, stamp wine, declare and manage wine stamps with the customs office? - Is the special consumption tax calculated on the value of imported goods or including the cost of extraction, bottling and labeling in Vietnam? - If the company pays special excise tax at the time of importation, does it have to pay additional excise tax? Chi tiết
How are chemical import procedures used as diagnostic testers used on testing machines? 16/05/2019 15:37

How are chemical import procedures used as diagnostic testers used on testing machines?

 
Chi tiết
In which case is the goods exempt from actual inspection? 16/05/2019 13:25

In which case is the goods exempt from actual inspection?

 
Chi tiết
What customs documents for exported goods include documents? 16/05/2019 13:22

What customs documents for exported goods include documents?

 
Chi tiết
Phòng 01, Tầng trệt, Tòa Nhà Flora, Số 59 Đường 19, Khu Phố 19, Phường An Khánh, TP. HCM
 
 0988 6666 87        
 info@logisticsh-a.com                        Hotline: 
 
      
(028) 22335566
 
Hotline
Quý khách có nhu cầu vui lòng liên hệ
0988 6666 87