Skip to main content

Procedure - For DLC Issuance

There are different types of letters of credit and various scenarios in which letters of credit (L/C) are used. The basic letter of credit procedure:

1. The buyer and the seller draw up a purchase and sales agreement. The purchase and sales agreement between the buyer and the seller stipulates that payment is made through a letter of credit.

2. The buyer submits the LOI along with required DLC Type (Use Updated Security List), Face Value, Issuing Bank Name, Receiving Bank Details to issue a letter of credit. The letter of credit must be in accordance with the purchase and sales agreement.

3. Issuing Platform will check the Availability of the requested Security and reply to the Applicant with Security details (or suggest an alternative Security). The reply will be attached with an Application/CIS Form.

4. Applicant will fill and submit the Application/CIS with Supporting documents like Pro-forma Invoice & Purchase Contract.

5. Legal Desk will verify the documents and access Applicant’s capabilities. Accepted applicants will receive the Legal Agreement of Securities Issuance Program.

6. Applicant will submit the Executed Agreement to issuing authority.

7. Issuing authority will counter-sign the agreement and submit a copy to the Applicant.

8. Issuing authority will issue the Payment Invoice for the Lease fee of the required DLC.

9. Applicant, within five (5) banking days, instructs his Bank to transfer the Lease Fee on Letter of Credit transaction.

10. Within three (3) banking days from the receipt of the Lease Charges, the issuing bank sends the letter of credit to the advising bank through SWIFT MT700.

11. The advising bank verifies the authenticity of the letter of credit and forwards the letter of credit to the seller.

12. After ensuring that the terms of the letter of credit can be met, the seller produces the goods and prepares shipment.

13. The seller prepares the documents that prove that the goods are ready for shipment and presents these documents to the advising bank. The advising bank sends the documents to the issuing bank.

14. The issuing bank checks the documents and if approved, the issuing bank transfers the payment to the seller through the advising bank.

15. The issuing bank hands over the documents to the buyer. The documents allow the buyer to clear the goods from the customs and take possession of the goods. The buyer pays the issuing bank.

Comments

Popular posts from this blog

BG/SBLC LEASE 12+3

Transaction Procedure. 1. Lessee Submits DOA, LOI, CIS, PASSPORT, Current dated Bank Comfort Letter, Copy of    Certificate of Incorporation and Bank Details. 2. Provider will conduct Due Diligence and upon successful Due Diligence the DOA will be     signed/counter signed between lessor and the lessee . 3. The Lessor will then send MT799 pre advice. 4. The Lessee’s bank replies with RWA / ICBPO or payment guarantee of 12+3 % and the     transmission fees, payable in 5-7 business days after MT760 receipt . 5. The lessor’s Bank will then send the MT760 to Lessee’s bank 6. Lessee’s bank does MT103 wire transfer to Lessor’s designated bank accounts within 5-7     business days after MT760 swift receipt After Successful Due diligence, Lessor countersigns the LOI. The Signed LOI becomes a Legal binding Commercial Contract (agreement) between the parties. Both parties shall lodge the agreement in their respectiv...

Dubai receiver MT103/202

MT103/202 CASH TRANSFER  For genuine senders that can accept to begin sending mt103/202 cash transfer with small tranches and increase the amount.  we have 2 corporate receiving accounts in NOOR BANK DUBAI and FIRST GULF BANK DUBAI +  (RAK bank)National Bank Of RAS AL KHAIMAH  + Abu Dhabi Commercial Bank ( ADCB )  that can handle with simple commercial invoice from receiver that must be signed from your sender.  Tranche schedule  First tranche 1m  Second tranche 5m  EMAIL : spz.resources@gmail.com