Export and Import Products
1. Letter of Credit (L/C)
Letter of Credit (L/C) is a guarantee of payment/promise of payment from an issuing bank to beneficiary, if the documents that have been submitted by the beneficiary are in accordance with the requirements of L/C, UCP 600, and international banking practice standards (complying presentation).
- L/C based on rules of Uniform Customs and Practice for Documentary Credit ICC Publication No. 600 (UCP 600).
- L/C is irrevocable which means it cannot be canceled unilaterally.
- L/C is independent (separated from sales contract).
2. Documentary Collection
Documentary Collection is a payment system by which seller sends goods to buyer and makes billing payment using document through bank services.
Generally, there are 2 (two) types of Documentary Collection :
- Collection D/P (Document against Payment)
Document submitted to buyer after the buyer pays in full the price of the goods listed on the document for the shipment of goods.
- Collection D/A (Document against Acceptance)
Document submitted to buyer after the buyer accepts the draft attached to the document. Payment is made by the buyer on the due date stated in the accepted draft.