l/C I NG L/C i ng (Reciprocal L/C) thng c s dng trong giao dch gia cng hng xut khu, theo

c hai bn u ng vai tr l nh nhp khu v xut khu. L/C i ng c pht hnh hoc ch c hiu lc khi c mt L/C khc i ng vi n c pht hnh. Khc vi nhng L/C thng thng c thanh ton/chp nhn thanh ton khi chng t xut trnh ph hp, L/C i ng l L/C thanh ton c iu kin, theo Ngn hng Pht hnh (NHPH) L/C i ng cam kt thanh ton ch sau khi nhn c y tin hng theo L/C khc i vi L/C do NHPH pht hnh. iu kin thanh ton in hnh ca L/C i ng thng c NHPH quy nh tng t nh sau: y l L/C i ng vi L/C s ... ngy .... c pht hnh bi Ngn hng..... Khi nhn c chng t ph hp, chng ti (NHPH) s chp nhn hi phiu/chng t v s thc hin thanh ton hi phiu/chng t o hn ch sau khi nhn c y tin hng theo L/C s ........... ngy ...... do Ngn hng ....... pht hnh. V d sau y c th gip bn hiu r hn v L/C i ng: Shingbang Ltd., Co (Hn Quc) k mt hp ng gia cng hng may mc vi Garment Company No. 5 (Vit Nam), theo Shingbang Ltd., Co m L/C nhp thnh phm (Master L/C) cho ngi hng l Garment Company No. 5 v L/C Garment Company No. 5 m L/C nhp nguyn liu tr chm 90 ngy cho ngi hng l Shingbang Ltd., Co. Khi nhn c L/C, v d, L/C No. 123 dated 20/2/2008 c pht hng bi Korex Bank Seoul, Garment Company No. 5 yu cu ngn hng ca mnh (Vietcombank Da Nang) pht hnh L/C tr chm (deferred payment L/C) 90 ngy i ng vi L/C trn cho ngi hng l Shingbang. L/C i ng do Vietcombank Da Nang pht hnh c th quy nh v iu kin thanh ton nh sau: This L/C is reciprocal to L/C No. 123 dated 20/4/2008 issued by Korex Bank, Seoul. Upon receipt of the documents complying with the L/C terms, we shall incur a deferred payment undertaking but the payment hen due shall be effected only after our full receipt of the proceeds under L/C No. 123 dated 20/4/2008. L/C i ng ph bin ch yu mt s nc Chu . Vit Nam loi L/C ny c pht hnh ph bin nhng nm 90 khi cc cng ty dt may Vit Nam gia cng hng may mc cho cc cng ty Hn Quc. Hin nay loi L/C hu nh khng cn c s dng rng ri.

Different Types of Letter of Credit (by the nature of L/C)

confirmed LC

An LC is said to be confirmed when another bank adds its additional confirmation (or guarantee) to honor a complying presentation at the request or authorization of the issuing bank.

Transferable LC

A Transferable Credit is one under which the exporter has the right to make the credit available to one or more subsequent beneficiaries. Credits are made transferable when the original beneficiary is a middleman and does not supply the merchandise himself but procures goods from the suppliers and arrange them to be sent to the buyer and does not want the buyer and supplier know each other. The middleman is entitled to substitute its own invoice for the one of the supplier and acquire the difference as his profit in transferable letter of credit mechanism. Important Points of Consideration:

A letter of credit can be transferred to the second beneficiary at the request of the first beneficiary only if it expressly states that the letter of credit is "transferable". A bank is not obligated to transfer a credit. A transferable letter of credit can be transferred to more than one second beneficiary as long as credit allows partial shipments. The first beneficiary may demand from the transferring bank to substitute his name for that of the applicant. However, if a document other than invoice required in the transferable credit must be issued in a way to show the applicant's name, in such a case that requirement must be indicated in the transferred credit. Back to Back LC

In this type of LC consisted of two separated and different types of LC. First one is established in the benefit of the seller that is not able to provide the corresponding goods for any reasons. Because of that reason according to the credit which is opened for him, neither credit will be opened for another seller to provide the desired goods and sends it. Back-to-back L/C is a type of L/C issued in case of intermediary trade. Intermediate companies such as trading houses are sometimes required to open L/Cs by supplier and receive Export L/Cs from buyer. SMBC will issue a L/C for the intermediary company which is secured by the Export L/C (Master L/C). This L/C is called "Back-to-back L/C". Standby Letter of Credit

A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SLOC will perform brief underwriting duties to ensure the credit quality of the Buyer, then send notification to the bank of the Seller. Also known as a "non-performing letter of credit". Standby letters of credit are often used in international trade transactions, such as the purchase of goods from another country. The seller will ask for a standby letter of credit, which can be cashed on demand if the buyer fails to make payment by the date specified in the contract.

Revolving Letter of Credit

With a Revolving Letter of Credit, the issuing bank restores the credit to its original amount once it has been used or drawn down. Usually, these arrangements limit the number of times the buyer may draw down its line over a predetermined period.

A revolving letter of credit is a guaranteed payment arrangement with a bank that is used to facilitate repeat sales transactions in international trade. In instances where importers and exporters engage in repeat purchases of the same goods over the course of time, a revolving letter of credit establishes an open draw in favor of the exporter so the importer does not have to obtain a letter of credit for each individual transaction. The importer's bank, known as the issuing bank, guarantees payment for every order under the letter for a specified length of time, as long as the exporter provides the proof of shipping or other documentary evidence required.