CUSTOMS PROCEDURE - may i ask about the revolving letter...?

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

Export of plywood 05/08/2020 11:01 Industrial plywood made from eucalyptus and acacia plantation forests. Input materials for production: Trading with receipts of documents, contracts, and complete forest product lists with individuals and units in the territory of Vietnam. The company wants to ask questions and answers about documents and records for export procedures: What kind of industrial plywood made from eucalyptus wood, acacia plantation includes what documents when going through customs procedures to export B11 type? Chi tiết

Ask about plastic scrap? 07/04/2020 13:38 Is an enterprise specializing in manufacturing and exporting plastic products, during the production process, the generated waste cannot be recycled? Enterprises have sold inland as scrap and declared VAT to tax administration agencies. However, according to the guidance for the scrap company formed from both imported and purchased domestic materials, the enterprise must allocate and split the scrap selling price into 2 parts; for the import part, the Customs declaration also for the domestic part, the tax declaration.
Enterprises wonder, in case of VAT declaration with the customs office, does the scrap purchasing unit need red invoice ?. Chi tiết

I have a shipment export to Japan....? 10/03/2020 08:33 Question: I have a shipment export to Japan, on the contract showing that both sellers and buyers have completed the declaration, have not sent SI and VGM but now the importer requires to show more Consignee, notify other than byuer is coming. 4 parties, So the contract I need to edit anything? And what do I have to show on Invoice. Packing List and Bill of Lading or show all 4 parties the same documents? Chi tiết

Customs procedures of non-commercial personal goods, what does the application process include? 02/07/2019 08:44 Customs procedures of non-commercial personal goods, what does the application process include? Chi tiết