For the importer
- A documentary letter of credit helps the importer minimise the risk the exporter not to deliver the goods.
- It guarantees that payment will be executed upon presentation of the documents confirming shipment of the goods.
- It allows the importer to structure the payment according to the contract and their needs.
- It shows solvency and ability of the importer to negotiate favourable terms in future.
For the exporter
- It guarantees payment upon complying presentation of documents.
- It minimises production risk if the buyer cancels or changes the order.
- It allows the exporter to structure the delivery in accordance with their interests.
- The importer may make claims on goods received outside the letter of credit, which gives the exporter a guarantee that they will receive the full payment for the goods delivered without further deductions.
Issuance of a letter of credit
A documentary letter of credit is issued by Tokuda Bank upon preliminary provided collateral (credit line or cash collateral) and the completed and signed of a Application for issuance of letter of credit
Receipt of a letter of credit
Tokuda Bank AD advises its clients of letters of credit received from domestic and foreign banks, confirming the authenticity, offers professional consultations on their terms and assists in the preparation of relevant documents.
Charges and Commissions
All charges and commissions relating to the handling of letters of credit issued and received by Tokuda Bank are stated in the section Documentary Operations of the Tariff.
The processing of letters of credit in Tokuda Bank is governed by the current ICC Uniform Customs and Practice for Documentary Credits.