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    Letter of Credit

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    shikhasharmajpr8146

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    Letter of Credit

    Uploaded by

    shikhasharmajpr8146
    25 views5 pages

    Copyright

    © Attribution Non-Commercial (BY-NC)

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    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    25 views5 pages

    Letter of Credit

    Uploaded by

    shikhasharmajpr8146

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 5

    Letters of Credit

    Getting Paid Under


    An Irrevocable Documentary Credit

    Karen Dunlap
    Dunlap International, Inc.
    Letter
    Governed by
    of Credit UCP 500
    Summary of a contract
    between seller and
    buyer with the bank(s)
    as referee.
    The Beginning:
    An Offer and an Acceptance

    • Formal Contract
    • Seller’s Quotation/
    Proforma Invoice and
    Buyer’s Purchase Order
    • Order placed over the
    internet
    PROFORMA INVOICE
    Critical First Step
     A PROFORMA INVOICE is an invoice provided by a
    supplier prior to the shipment of merchandise,
    informing the buyer of the kinds and quantities of
    goods to be sent, their value, and important
    specifications (payment terms, time of shipment,
    weights and dimensions, shipping terms, etc.).
     Essentially the proforma invoice is a quotation laid out
    in the format of your proposed billing invoice
    summarizing the key terms of your sales contract .
    When is a Proforma Invoice required?
    1. To enable the Buyer to open a
    Letter of Credit.
    2.To enable the Buyer to obtain
    an Import License (and foreign
    currency exchange).
    A Proforma is useful anytime
    you need to communicate your
    expectations clearly!

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