Letter of CreditLC

An LC replaces the buyer's credit risk with a bank's undertaking, so an exporter can ship goods to an unknown importer with confidence of payment.

Parties: applicant (importer), issuing bank (importer's bank), beneficiary (exporter), advising bank (which authenticates and passes the LC to the exporter), confirming bank (which adds its own undertaking, if requested), negotiating or nominated bank and reimbursing bank.

Process: the importer applies and provides margin or credit limit; the issuing bank opens the LC through SWIFT (MT700); the advising bank advises it; the exporter ships the goods and presents documents such as the commercial invoice, bill of lading or airway bill, packing list, certificate of origin and insurance certificate; banks examine the documents; if they comply, the issuing bank pays or accepts.

LCs are governed internationally by the ICC's UCP 600 (effective 1 July 2007). A core principle is that banks deal in documents, not goods, and the credit is independent of the sale contract.

Types include sight and usance LCs, irrevocable, confirmed, transferable, back-to-back, revolving, red clause and standby LCs. In Nepal, LCs are used widely for imports from third countries, under NRB's foreign exchange rules.

Nepali banks open LCs for imports under NRB's foreign exchange directives; imports from India are often settled through other modes such as direct payment or DAP collections in addition to LCs.

प्रतीतपत्रले क्रेताको कर्जा जोखिमलाई बैंकको प्रतिबद्धताले प्रतिस्थापन गर्छ, जसले निर्यातकर्तालाई भुक्तानीको सुनिश्चितता दिन्छ।

पक्षहरू: निवेदक (आयातकर्ता), जारीकर्ता बैंक, लाभग्राही (निर्यातकर्ता), सूचना दिने बैंक (advising), पुष्टि गर्ने बैंक (confirming), वार्ता गर्ने बैंक (negotiating) र प्रतिपूर्ति बैंक।

प्रक्रिया: आयातकर्ताले मार्जिन वा कर्जा सीमासहित आवेदन दिन्छन्; जारीकर्ता बैंकले SWIFT (MT700) मार्फत LC खोल्छ; निर्यातकर्ताले सामान पठाई वाणिज्यिक बीजक, बिल अफ लेडिङ/एयरवे बिल, प्याकिङ लिस्ट, उत्पत्तिको प्रमाणपत्र र बिमा प्रमाणपत्र पेस गर्छन्; कागजात सर्तअनुरूप भए भुक्तानी वा स्वीकृति हुन्छ।

अन्तर्राष्ट्रिय रूपमा ICC को UCP 600 लागू हुन्छ। मूल सिद्धान्त: बैंकले सामान होइन कागजातको आधारमा काम गर्छ। प्रकार: दृष्टि (sight), म्यादी (usance), अपरिवर्तनीय, पुष्टि गरिएको, हस्तान्तरणयोग्य, ब्याक-टु-ब्याक, रिभल्भिङ, रेड क्लज र स्ट्यान्डबाइ।

नेपालका बैंकहरूले नेपाल राष्ट्र बैंकको विदेशी विनिमय निर्देशनअनुसार आयातका लागि प्रतीतपत्र खोल्छन्; भारतबाटको आयात प्रतीतपत्रका साथै सिधा भुक्तानी वा DAP जस्ता माध्यमबाट पनि हुन्छ।