Sugar supplier / sugar export

5 benefits to buyers and suppliers sugar, when using stand-by letter of credit SBLC

Company operates according to the rules of International trade ICC (International Chamber of Commerce, France)

www.Icumsa45.ru

Vladislav Kamozin | Director | Kazakhstan Sugar Company

5 benefits to buyers and suppliers sugar, when using stand-by letter of credit SBLC!

What is stand-by letter of credit SBLC ?

Stand-by letter of credit SBLC - it is the hybrid bank tool, which unites DLC - Documentary Letter of Credit by obligatory providing documents (POP)according to the delivered sugar, and BG - Bank Guarantee in that, that she it is executed only in a case inability of the buyer to pay sugar supply.

Company operates according to the rules of International trade ICC (International Chamber of Commerce, France)

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As works stand-by letter of credit SBLC ?

The buyer and the Seller conclude the contract(1) on sugar supply by rules of International trade of ICC (International Chamber of Commerce, France).Buyer sends the statement + the contract for opening stand-by letter of credit SBLC(2) in its bank. The bank of the buyer issues BG - Bank Guarantee(3), which through stand-by letter of credit SBLC ways SWIFT (MT760)(4) reaches the Seller. Bank of the Seller having received SWIFT (MT760), issues documents POP (MT799) and 2% Perfomans Bond (MT760)(5) and sends to Bank of the Buyer and further to the Buyer(6). Bank of the buyer makes payment for the put sugar(7) according to the received documents POP (MT799).

If payment doesn't happen, that stand-by letter of credit SBLC, comes into force(9) and Bank of the Seller works according to the received notice about lack of payment + has to attach Documents POP(8), issued at the time of release stand-by letter of credit SBLC, proving that the Seller fulfilled the liabilities in full to the Buyer. It brings for payment Bank of the Buyer in favor of Bank of the Seller, for the put sugar. Further the Seller notifies the Buyer, what there is no payment and the contract is broken off!(10)

P.S.: 2% Perfomans Bond (MT760) works similarly with stand-by letter of credit SBLC, only in favor of Buyer for not performances of the signed contract. If the contract isn't performed because of the Seller, Buyer receives 2% Perfomans Bond (MT760).

Company operates according to the rules of International trade ICC (International Chamber of Commerce, France)

*SBLC must be issued OR confirmed by top 50 bank

ПОКУПАТЕЛЬ ПРОДАВЕЦ

Scheme of work stand-by letter of credit *SBLC

КОНТРАКТ

БАНК ПОКУПАТЕЛЯ БАНК ПРОДАВЦА

1. ВЫДАЧА ГАРАНТИИ 2. SBLC УВЕДОМЛЕНИЕ

1.conclude CONTRACTBUYER SELLER

2.Application for opening

SBLC

3. BANK OF BUYERissues

BG - Bank Guarantee

5. BANK OF SELLERissues documents POP (MT799) and Perfomans Bond

2%(MT760)

6. Receives documentsPOP (MT799) and Perfomans Bond 2%(MT760)

4. which through SBLC ways SWIFT (МТ760)

7. Makes payment for the put sugar

8. If there is no

payment + Documents

(POP)

9. SBLC comes into payment

force

10. Notice isn't present payment and contract is broken off

5 benefits to the buyer sugar on usestand-by letter of credit SBLC

For buyer:

1. Receiving goods without advance payment.2. Stand-by letter of credit SBLC it is used in cases, if one of the parties according to the transaction wishes to obtain the maximum guarantee of execution of contract commitments by other party.3. Possibility of temporary use of means Bank of the Buyer Stand-by letter of credit SBLC in case of approach «guaranteed» case and inability to carry out payment in time.4. Guaranteed by Bank of the Buyer stand-by letter of credit SBLC or first-class foreign bank ТОП 50 implementation of obligations to the Seller.5. Possibility of the early termination of validity period stand-by letter of credit SBLC in case of implementation of obligations to the Seller.

P.S.: 2% Perfomans Bond (MT760) gives additional benefit for the Buyer for not performances of the signed contract. If the contract isn't performed because of the Seller, Buyer receives 2% Perfomans Bond (MT760).

Company operates according to the rules of International trade ICC (International Chamber of Commerce, France)

5 benefits to the supplier sugar on usestand-by letter of credit SBLC

For seller:

1. Double guarantee of payment for the delivered goods - from Bank of the Buyer and from foreign bank ТОП 50.2. Speed of receiving means on stand-by letter of credit SBLC in case of failure to carry out by the Buyer of the contract commitments.3. Possibility of shipment of goods until payment from 100% a guarantee of payment for sugar.4. Completely minimizes risks of the Seller and he is ready to deliver sugar.5. stand-by letter of credit SBLC, in unlike bank guarantees BG (which, as a rule, submit to the legislation of the country of delivery) submit to the Unified rules and customs for documentary letters of credit (USP 600) - it is the international document, which is obligatory for execution.

Сompany operates according to the rules of International trade ICC (International Chamber of Commerce, France)

* Learn more! ► http://Icumsa45.ru/

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Tel.: +7 (908) 055-96-34 | E-mail: kz.sugar.co@icumsa45.ru | Skype: kz.sugar.co

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Kazakhstan Sugar CompanyBIN 150440033703

Company address:

Index: 110000, country Republic Kazakhstan, Kostanay city, Lermontova street, building 28A, office № 4.

Сompany operates according to the rules of the International Trade ICC (International Chamber of Commerce, France)