International Business & Finance
Content
Letter Of Credit
Present By: Muhammad Bilal Naseer
Roll #: BC12-730
Section: “B” (Afternoon)
Presented To: Prof. Muhammad Akram
Letter Of Credit
A binding document that a buyer can
request from his bank in order
to guarantee that
the payment for goods will be
transferred to the seller. Basically, a
letter of credit gives the seller
reassurance that he will receive the
payment for the goods.
Parties:
MADNI dying
and printing mills
(Importer)
UNG JIN corporation
(Exporter)
Importing
Merchandis
e
Banks Involve:
Importer Bank
MCB Bank
Exporter
Bank
SHINHAN Bank
Transaction Details:
Items Imported: Thickening agent for textile printing Seatex HV
Total value: $91,800
Importer: MADNI dying and printing mills
Exporter: UNG JIN corporation
Weight(Net): 12000 KGs
Draft: At sight
Merchandise Imported:
1.Thickening agent for
textile printing Seatex
HV(Sodium Alginate)
2.Weight is 12000 KGs……
DOCUMENTS USED IN
TRANSACTION
1. Request for opening of
letter of Credit
2. Pro forma Invoice
3. Commercial Invoice
4. Packing List
5. Certificate of Origin
6. Bill of Lading
7. Bill of Exchange
Request for Opening of Letter of Credit:
Swift
Contents
Form of Documentary Credit
Date of Issue
Applicable Rules
Bank Details
Currency Details
Draft
Description of Goods
Swift Cont.
Swift Cont.
Commercial Invoice
Packing List
Insurance
Bill of Lading
Shipper
Consignee Name
Notify Party
Port of Delivery
Bill of Exchange
Amount
Sight
1. Importer Orders Merchandise
2.Exporter Agrees to Fulfill Order
3.
6.Merchandise Shipped to Pakistan
UNG JIN
corporatio
n
10 &11
Exporter sells
To bank
7. UNGJIN Corp.
Presents Draft
to Bank
MADNI
MADNI dying
dying
and
and printing
printing
mills
mills
13.Importer
Pays bank
12. Bank tells
importer
Documents arrive
14.SHINHAN Presents Draft and
Receive payment
SHINHAN
Bank Ltd.
5. SHINHAN bank
Informs
UNG JIN
corporation about
L/C
8. SHINHAN Bank Presents Draft to
MCB
MADNI
dying and
printing mills
Arranges of
L/C
MCB Bank
Ltd.
9.MCB returns Accepted Draft
4. MCB Send L/C To SHINHAN Bank
Present By: Muhammad Bilal Naseer
Roll #: BC12-730
Section: “B” (Afternoon)
Presented To: Prof. Muhammad Akram
Letter Of Credit
A binding document that a buyer can
request from his bank in order
to guarantee that
the payment for goods will be
transferred to the seller. Basically, a
letter of credit gives the seller
reassurance that he will receive the
payment for the goods.
Parties:
MADNI dying
and printing mills
(Importer)
UNG JIN corporation
(Exporter)
Importing
Merchandis
e
Banks Involve:
Importer Bank
MCB Bank
Exporter
Bank
SHINHAN Bank
Transaction Details:
Items Imported: Thickening agent for textile printing Seatex HV
Total value: $91,800
Importer: MADNI dying and printing mills
Exporter: UNG JIN corporation
Weight(Net): 12000 KGs
Draft: At sight
Merchandise Imported:
1.Thickening agent for
textile printing Seatex
HV(Sodium Alginate)
2.Weight is 12000 KGs……
DOCUMENTS USED IN
TRANSACTION
1. Request for opening of
letter of Credit
2. Pro forma Invoice
3. Commercial Invoice
4. Packing List
5. Certificate of Origin
6. Bill of Lading
7. Bill of Exchange
Request for Opening of Letter of Credit:
Swift
Contents
Form of Documentary Credit
Date of Issue
Applicable Rules
Bank Details
Currency Details
Draft
Description of Goods
Swift Cont.
Swift Cont.
Commercial Invoice
Packing List
Insurance
Bill of Lading
Shipper
Consignee Name
Notify Party
Port of Delivery
Bill of Exchange
Amount
Sight
1. Importer Orders Merchandise
2.Exporter Agrees to Fulfill Order
3.
6.Merchandise Shipped to Pakistan
UNG JIN
corporatio
n
10 &11
Exporter sells
To bank
7. UNGJIN Corp.
Presents Draft
to Bank
MADNI
MADNI dying
dying
and
and printing
printing
mills
mills
13.Importer
Pays bank
12. Bank tells
importer
Documents arrive
14.SHINHAN Presents Draft and
Receive payment
SHINHAN
Bank Ltd.
5. SHINHAN bank
Informs
UNG JIN
corporation about
L/C
8. SHINHAN Bank Presents Draft to
MCB
MADNI
dying and
printing mills
Arranges of
L/C
MCB Bank
Ltd.
9.MCB returns Accepted Draft
4. MCB Send L/C To SHINHAN Bank
