Letter of Credit
We at Kurdistan International Islamic Bank for Investment and Development present several worldwide banking services as issuing Letter of Credit through a big and wide range of correspondence with international banks. Different types of Letter of Credits which are subjected to international uniform (UPC-600).
Requirements:
1. The official contract between importer and exporter. 2. Official application for issuing L/C with the logo of the importer company showing the amount of L/C numerical and writing with other data 3. Opening a current account to the customer or the company to deposit the amount of L/C 4. Sign a contract between the importer and the bank stating the amount of the L/C and the required conditions 5. All customer documents, if the customer is a company (company issuance contract, minutes of meeting, official taxable from general tax authority In addition, authorized persons names and their signature specimen.
Letter of credit
It is one of the most important services by banks in general , as it is the basis for international commercial movement (import and export) all over the world , which is carried out through the correspondent network of banks around the world.
where the documentary credit is a written undertaking issued by the bank called (the issuer) and it is based on the request of the customer (the beneficiary ) the bank is obligated to pledge to pay the specified amount within a certain period of time (whenever the seller presents the commodity documents in compliance with the terms of the credit).
It is considered a safe method of payment instead of cash and transfers, but within international laws and customs that protect the rights of both parties , seller and buyer.
seller: guarantees receipt of the value of the goods upon shipment.
buyer :guarantees receipt of the goods to be purchased and their value paid.
for example :when you buy a commodity from outside the country and you need a guarantee that the goods will arrive before paying the amount, and at the same time the supplier company needs to ensure that the amount of the goods arrives , through the documentary credit , the right of the two patties will be guaranteed through a contract concluded between the two banks.
what our honorable customer has to do is report to us to conduct the required financial transactions with the bank with which the supplying company deals with international guarantees.