what`s L/C confirmation?
Open & Silent confirmation
L/Cconfirmation is effective to hedge exporter's future assets
once associate degree LC is issued, the
issuance Bank could request the Advising Bank to feature its confirmation on
the LC. By agreeing to feature the confirmation, the Advising Bank can become
the Confirming Bank and undertakes to pay the beneficiary (seller) if all the
terms and conditions of the LC area unit complied with. Such endeavor from the
Confirming Bank is separate and additionally to the endeavor given by the
issuance.
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Open & Silent confirmation
Open confirmation is that the case wherever
associate degree L/C issuance bank requests to feature confirmation to the
advising bank on the L/C.
Silent
confirmation is that the case wherever confirmation is adscititious solely upon
asking by the bourgeois. there's no request to feature confirmation on the L/C
by the L/C confirmation
What ought
to merchandiser do once he receives
Letter of Credit?
1). The
names and addresses area unit complete and so as.
2). The
terms and conditions of the LC adjust to what.
3). The LC quantity, unit value and merchandise description area unit so
as.
4). the
proportion of insurance cowl (if applicable).
5). the most
recent cargo date, presentation date and LC expiration date will
6). the
kinds of documents entailed below the LC ar procurable.
7). L/C confirmation is effective to hedge exporter's future assets.
