Documentary Letter Of Credit (DLC) | MT700 | Trade Finance Network

The parties involved in issuing a Documentary Letter of Credit (DLC) are the seller/exporter (beneficiary), the issuing ngân hàng or financial institution, the buyer/importer (applicant) who is also the bank's or financial institution's client, and usually an advising bank of whom the seller/exporter (beneficiary) is a client.

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A Documentary Letter of Credit (DLC) requires that the seller/exporter (beneficiary) present certain documents before the letter of credit's expiration.

These specific documents are directly related vĩ đại the contract between the seller/exporter (beneficiary) and the buyer/importer (applicant), as they show the issuer that the seller/exporter (beneficiary) has completely fulfilled his/her side of the khuyễn mãi giảm giá.

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Once the seller/exporter (beneficiary) makes a compliant presentation, the issuer (bank or financial institution) pays the beneficiary even if the buyer/importer doesn't want vĩ đại pay.

The Documentary Letter Of Credit (DLC) Process:

Step 1: Application

Complete and return the DLC application with the documents from your khuyễn mãi giảm giá (Pro Forma Invoice, SPA, Contract, etc.).  

Step 2: Draft

We will create a FREE Documentary Letter of Credit SWIFT MT700 draft for you and your sell/exporter vĩ đại review and confirm.

Step 3: Draft Review & Opening Payment

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Once you and your seller/exporter have finalized the DLC draft (changes vĩ đại the draft are không lấy phí of charge) and are ready vĩ đại obtain the DLC, you then wire the opening fee vĩ đại our ngân hàng according to the pro forma invoice sent vĩ đại by us.  

Once we have received the wire, we will release the finalized Documentary Letter of Credit (DLC) vĩ đại the ngân hàng or financial institution for issuance by SWIFT MT700.

Step 4: Issuance

In most cases, the ngân hàng will issue the DLC within 48 hours of release.  Once the DLC is issued, we gmail you a copy of the Documentary Letter of Credit as it is transmitted by a MT700 SWIFT message vĩ đại the beneficiary, including the DLC reference number.  

Your seller/exporter will be able vĩ đại confirm receipt of the DLC transmission shortly thereafter.

Step 5: Presentation of Documents

Once the seller/exporter has prepared and loaded all goods for shipment, they must send the specified documents for that particular shipment vĩ đại their own ngân hàng (the advising bank).  

Their ngân hàng will then forward the documents vĩ đại our ngân hàng (the issuing bank), and we will gmail you copies of the presentation and all of the documents that were submitted by the seller/exporter for your review and approval.  

Step 6: Payment of Goods

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Before our ngân hàng can release the original documents, we must receive payment for the presentation.  Once we have received payment, we cosign the documents vĩ đại you and overnight them vĩ đại your freight forwarder or vĩ đại whomever you wish.  

This completes the transaction.

The Documentary Letter Of Credit (DLC) is governed by a phối of guidelines known as the Uniform Customs and Practice (UCP 600), which was first created in the 1930s by the International Chamber of Commerce (ICC).