Product Definition  

　　Refer to a service where Harbin Bank, upon request from domestic importers (letter of credit applicants), issues letters of credit within the approved credit limit and upon receipt of adequate collateral. The bank then fulfills its payment obligations under the letter of credit upon receiving documents that meet the credit's terms.

　　Product Features  

　　1. Enhances negotiating power. The issuance of a letter of credit is equivalent to providing the exporter with a conditional payment commitment beyond commercial credit, enhancing the importer's credit, which can be used to negotiate more favorable prices for goods.  

　　2. Ensure goods security. Commercial credit is converted into bank credit, wherein the bank's involvement enhances the security of the trade. This involvement enables effective management of ownership, shipping schedules, and product quality through the scrutiny of documents and adherence to stipulated terms.

　　3. Reduce capital pressure. For importers using credit to issue letters of credit, it reduces the use of their own funds between the issuance of the credit and the payment.

　　Applicable Clients  

　　1. Import and export parties who wish to set certain terms to improve the credibility of the trade.  

　　2. In a seller's market, where the exporter mandates the use of a letter of credit as the method of settlement, importers must comply with this requirement.

　　3. Importers and exporters with limited working capital who are seeking trade financing.  

　　Application Conditions  

　　1. Enterprises that are legally registered with a valid business license, having undergone annual inspections or possessing other valid documentation that verifies their legal operations and defined scope of business activities; listed in the company registry. 

　　2. Enterprises with a genuine, legal, and compliant trade background.  

　　3. Submission of the Irrevocable Letter of Credit Application Form, Letter of Credit Issuance Applicant's Commitment, trade contract, and agency agreement, etc.  

　　Processing Procedure

　　1. The importer submits the letter of credit application form, trade contract, import permit (if applicable), etc. Harbin Bank, after review, issues the letter of credit based on collateral or credit limit.  

　　2. Upon receipt of the letter of credit notification, the exporter arranges the goods in accordance with the stipulated terms of the letter of credit.  

　　3. The exporter submits the documents in accordance with the requirements set forth in the letter of credit. Subsequently, the presenting bank forwards these documents to Harbin Bank for payment or acceptance. Harbin Bank then conducts a review of the documents and provides document review services.

　　4. Upon receiving and approving the documents, Harbin Bank proceeds with making payment or acceptance to the exporter, completing the transaction on the due date.