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
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
How to solve problems about energy labeling certificates when doing customs clearance procedures? 16/05/2019 15:46

How to solve problems about energy labeling certificates when doing customs clearance procedures?

 
Chi tiết
Procedures for importing industrial printer types using digital technology, offset type, flexo, copper pipe? 16/05/2019 15:39

Procedures for importing industrial printer types using digital technology, offset type, flexo, copper pipe?

 
Chi tiết
In which case does the customs office inspect processing facilities, manufacturing, processing capacity, production? How long is the processing time for processing, manufacturing, machining capacity, production? 16/05/2019 13:49

In which case does the customs office inspect processing facilities, manufacturing, processing capacity, production? How long is the processing time for processing, manufacturing, machining capacity, production?

 
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