Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Procedure for Opening a L/C for Imports
11-26-2006, 04:17 AM
Post: #1
Procedure for Opening a L/C for Imports
What is the procedure for opening L/C. What is the complete procedure for imports and what are relevant documents involved.
Visit this user's website Find all posts by this user
Quote this message in a reply
12-13-2006, 02:58 AM
Post: #2
 
U should visit a bank...
Its there business and they will be more than happy to tell you everything regarding that...
Visit this user's website Find all posts by this user
Quote this message in a reply
01-23-2007, 06:59 PM
Post: #3
 
Get L/c opening form, fill it out, attach
1.BBFS (Borrower's basic fact sheet),
2.latest audited fin. statement.
3.pro forma invoice of the item to be imported.

bank will ask you for the security, if no security is availalbe then LC will be opened against 100% margin. i.e. 100% amount to be paid to the bank before the establisment of lc.

TC.
Visit this user's website Find all posts by this user
Quote this message in a reply
01-23-2007, 07:55 PM
Post: #4
 
Well process here in Saudi Arabia is extremely simple and straight forward.

Only you need to fill in the L/C form (No attachment needed) and bank will deduct only 5% to 8% L/C margin depending on type of import. Opening L/C is no big deal the real problem starts after that. There are custom clearance issue, ( your clearing agent would do this) partial shipments, some times material received is less physically and more on packing lists, insurance claims on damaged materials, exchange rate variations and so on and so forth.

L/Cs are regulated by ICC (International Chamber of Commerce) Publication No. 500. What surprises me is that why in entire course of CA/ACCA there is no topic on L/Cs. It’s a major area of which professional accountants must be aware of. ICC – 500 has made it quite standardized.

You know, I literally thrashed my interviewer on every question he asked me and when he asked me about L/Cs I felt like sinking in the seat.
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 2 Guest(s)