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Process
of Export Letter of Credit |
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The buyers (foreign countries)
have conducted the contractual arrangements with the local suppliers
/ sellers. |
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Buyer asks to open a letter
of credit in favour of the exporter in Sri Lanka. |
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Buyer's bank opens the
letter of credit in favour of the exporter in Sri Lanka and mails
it to the exporter's bank. |
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Exporter's bank receives
the letter of credit from the importer's bank and sends it to the
exporter. |
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When the exporter receives
the original letter of credit , he then ships the relevant products
to the importer. |
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After examining the documents,
and if in conformity with the L.C. terms, the exporter is entitled
to get the value of the bill and the dollar amount is debited to the
importers account. |
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Exporter's bank dispatches
the documents to importer'sbank |
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Importer's bank examines
the documents and, if in accordance with L.C. terms, debits with US
dollars amount to the importer's account and response to the entry
made by exporter's bank |
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When the importer's bank
receives the receipt Letter of Credit value from importer, hand over
the relevant documents to the importer. |
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Importer submits the documents
to the steamship line and takes possession of the goods. |
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