Documentary Letters of Credit

we organize issuance of documentary letters of credit from top banks such as HSBC Hong Kong, STANDARD CHARTERED BANK Singapore. These LCs are for 90 days and are payable at sight 100%. Normally, a 90-day LC costs 4% to 6% depending on terms of supplies. This LC cost must be paid in advance on the basis of a signed BANK INSTRUMENT ARRANGEMENT AGREEMENT. LC is issued within 48 hours from the date of receipt of LC issuance cost. In case, the LC amount is higher and accordingly the LC issuance charges are higher, we also assist in arrangement of a separate SBLC to secure the main LC cost which should be reimbursed at the time of settlement of LC on arrival of shipment at the port of destination. Our company ARGO issues Indemnity to the LC provider (the company which deposits 100% margin for the LC). Please bear in mind that all LCs are 100% cash-backed which means these LCs basically are FULLY FUNDED DOCUMENTARY LETTERs OF CREDIT (FFDLC).

In order to trigger the LC, we must have the following documents from the client:

a) Color Scanned Copy of the Valid Proforma Invoice with all details of product, rate, total amount, banking coordinates of the supplier, buyer´s name properly indicated, port of loading, port of discharge, payment terms, signature and stamp by the supplier;

b) Color Passport Copy of the CEO of the client (buyer);

c) Bank Comfort Letter of the client;

d) Complete banking coordinates of the client (buyer);

e) A Letter of Intent requesting issuance of documentary letter of credit for so musch so amount duly signed by the CEO addressed to : ARGO INTERNATIONAL INC. 730 Drillane Circle, Hopkins, 55305 MN, USA;

Please find attached specimen of LC and copies of certain LCs issued for your understanding about the exact text of LC. If your seller has any specific LC text, you can provide the same for our examination and approval.

The procedure shall, therefore, be is as follows:

1. The client first provides the above-mentioned initial documents so that we should proivde the specific Bank Instrument Arrangement Agreement along with the invoice of the LC issuance charges;

2. The client signs the Bank Instrument Arrangement Agreement;

3. The client pays the LC issuance charges or charges for the SBLC to secure the main LC cost as per the Bank instrument Arrangement Agreement to the nominated bank account;

4. ARGO issues Indemnity Letter to the LC provider on behalf of the client (buyer);

5. LC is issued within 48 hours of the receipt of the LC issuance charges or in case a separate SBLC is to be organized first to secure the main LC cost, such SBLC is first issued and then FFDLC is issued with 48 hours after the SBLC has been sent to the LC provider;

6. The supplier should commence the shipment and provide scanned copies of shipping papers both to us and the buyer;

7. The buyer MUST arrange funds at their own end to settle the commercial invoice value of the supplier before the arrival of shipment and make sure that once the original shipping papers are submitted by the supplier at the counter of the LC issuing bank, the buyer´s bank MUST remit the money either to LC issuing bank (for settlement of LC) or make direct payment to the supplier and allow the LC to expire appropriately (NOTE: The LC provider shall IN NO WAY MAKE ANY PAYMENT ON BEHALF OF THE BUYER AND THIS IS WHY "INDEMNITY" IS PROVIDED TO THE LC PROVIDER). The buyer must have funds at the time of arrival of shipment to settle the supplier as discussed above;

8. If the main LC cost is secured through a separate SBLC, such LC cost should also be paid against a specific invoice at the time of settlement of LC (on arrival of shipment);

SYED JAMALUDDIN
Germany / USA
tel 004917632440017 USA TEL +1 7632607659
email: argointernationalusa@gmail.com
www.argointernationalusa.blogspot.com