2
ITALIAN
EXPORTER
FOREIGN
IMPORTER
UBI><BANCA
FOREIGN BANK OF
THE IMPORTER
INCOMING L/C (UBI EXPORT)
Italy
WORLD
1-
CO
NT
RA
CT
2- LC opening request
3-
L/c
Issued o
n U
BI
gro
up
4 – ADVICE OF L/C
5 -
Sh
ipm
en
t o
f g
oo
ds
5 - Docs presentation
6 –
Do
cu
me
nts
ma
iled
7 - Docs release to collect the goods
7 - Payment
8–
Pa
ym
en
t
9 - Payment
UBI Corporate Banking
MT 710 Advice of a Third
Bank's or a Non-Bank's
Documentary Credit
MT 720 Transfer of a
Documentary Credit
Article 39 Assignment
of Proceeds
UBI Corporate Banking
MT 710 Advice of a Third
Bank's or a Non-Bank's
Documentary Credit
MT 720 Transfer of a
Documentary Credit
Article 39 Assignment
of Proceeds
3
ITALIAN
EXPORTER
FOREIGN
IMPORTER
UBI><BANCA
FOREIGN BANK OF
THE IMPORTER
INCOMING L/C (UBI EXPORT) CONFIRMATION
Italy
WORLD
1-
Pu
rch
ase
co
ntr
act
2- LC opening request
3-
LC
issu
e o
n U
BI>
<B
an
ca
4 - LC advised and reach
a confirmation agreement
5 -
Sh
ipm
en
t o
f g
oo
ds
5 - Docs presentation
6 –
Do
cu
me
nts
ma
iled
7 - Docs release to collect the goods
9- Payment
8–
Pa
ym
en
t
7 - Payment
CreDoc Online
TFP
Trade Facilitation
Program
Article 9.
Reimbursement
Undertaking
Silent Confirmation
4
ITALIAN
EXPORTER
FOREIGN
IMPORTER
UBI><BANCA
FOREIGN BANK OF
THE IMPORTER
Export LC discounting (Both confirmed and unconfirmed)
Italy
CO
NT
RA
CT
2- Deferred LC opening request
3-
De
ferr
ed
LC
issu
e o
n U
BI>
<B
an
ca
4 - LC advice
5 -
Sh
ipm
en
t o
f g
oo
ds
6 - Docs presentation with request to discount before maturity
8 –
Do
cu
me
nts
ma
iled
9 - Docs release to collect the goods
10
– P
aym
en
t o
n m
atu
rity
7 – Payment, less discount fee
Article 12
Nomination
“in lieu” tax
10- Payment
5
ITALIAN
EXPORTER
FOREIGN
IMPORTER
UBI><BANCA
FOREIGN BANK
OF THE
IMPORTER
Export LC with Post-financing to the foreign importer
Italy
WORLD
1-
Pu
rch
ase
co
ntr
act
2- Sight LC opening request with Post-
financing + agreement 3
- L
C issu
e o
n U
BI>
<B
an
ca
4 - LC advice
5 -
Sh
ipm
en
t o
f g
oo
ds
6 - Docs presentation under LC terms
8 –
Do
cu
me
nts
ma
iled
9 - Docs release to co
llect the goods
7 – Sgiht Payment of LC
10
– In
form
atio
n o
f P
ost-
fin
an
cin
g p
rovid
ed
11– Information of Post-financing provided
12
- L
C r
ep
aym
en
t +
in
tere
st
8
Foreign
EXPORTER
ITALIAN
IMPORTER
Foreign BANK OF
EXPORTER
UBI><BANCA
OUTGOING L/ C (UBI IMPORT) Discounting to foreign exporter
WORLD
Italy
1-
Pu
rch
ase
co
ntr
act
2- Deferred LC opening with
«Discountable» clause 3
- D
efe
rre
d L
C issu
e o
n F
ore
ign
b
an
k
4 - LC advice
5 -
Sh
ipm
en
t o
f g
oo
ds
6 - Docs presentation with request to
discount under LC before maturity
7 –
In
form
UB
I a
bo
ut d
isco
un
tin
g r
eq
ue
st
8 –
Assig
nm
ent of pro
ceeds o
n m
atu
rity
9–
Pa
ym
en
t le
ss d
isco
un
tin
g in
tere
st
10 – Payment less discount interest
11 – Repayment on maturity
.
MT 710 Advice of a Third
Bank's or a Non-Bank's
Documentary Credit
“this letter of credit
is discountable”
Conform
documents
Assignment
9
“REQUEST” MT760
Contractual Guarantees (bid
bond, advance, performance,
maintainance
Tax refund payment bond
ISSUANCE OF INTERNATIONAL /LOCAL GUARANTEES
ISSUE” MT 760
Issue SBLC
Contractual Guarantees (bid
bond, advance, performance,
maintainance
Funding Requirements
10
Summary:
ADVICE OF NON
CONFIRMED L/C
ADDING
CONFIRMATION
DISCOUNTING L/C
EXPORT
POST FINANCING DISCOUNTING B/E
IMPORT
DISCOUNTING
ISSUE OR REQUEST TO ISSUE GUARANTEES / S.B.L.C.
14
Assignment of Proceeds
Dear Sirs,
We transcribe hereafter, for your proper knowledge, the text of the letter which has been transmitted to us
from ……………..(beneficiary of l/c)………………. on (date)
“QUOTE”
Re: IRREVOCABLE DOCUMENTARY CREDIT N. XXXXXXXX = (amount) OUR REF. N. ZZZZZZZZ
With reference to the above mentioned irrevocable documentary credit please note that we confirm you hereby our irrevocable
order to transfer on our behalf to …..(indicazione del beneficiario estero – indirizzo e n. di conto )………, the amount of
……….(importo in cifre e lettere del solo impegno)….. soon after the full amount equal to ….(importo del credito)……...-
relevant to the above stated Credit, will be ready and available for us, after dispatch, within the stated validity terms, with all
duly complying documents.
Without any responsibility on your part, you are kindly requested to give immediate advice to the concerned party:
………..(beneficiario estero)…….., by stating the validity terms of said credit.
“UNQUOTE”
In advising you of the instructions stated in the above said letter, without any engagement or responsibility
on our part, please note that, as it is a credit domiciled for payment at a Foreign Bank counter, we will carry
out the instructions received by our client, only after the Foreign Bank has credited us the relevant covering
amount. We assure you , however that, as it is an irrevocable order, no further instructions from
……………..(beneficiary of l/c )………………. – meant to modify or revoke these instructions, will be
accepted by ourselves, without your previous approval. Please also note that the undertaking we have been
charged with will be accepted by ourselves unless 1) we have any prior claims on our customer or 2) there
are judicial rulings preventing the payment.
15
T.F.P.
Mt 799:
WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF
: CREDIT NO. AAA/16 IN YOUR FAVOUR UNDER THE TERMS
: OF THE LETTER OF AGREEMENT BETWEEN OURSELVES AND
: YOURSELVES DATED (..)(THE 'CONFIRMING
: BANK AGREEMENT'). OUR IRREVOCABLE STANDBY LETTER
: OF CREDIT IS ISSUED IN SUPPORT OF THE FOLLOWING
: INSTRUMENT (THE 'ELIGIBLE INSTRUMENT')
: CLAIMS: PAYMENT WILL BE MADE IN ACCORDANCE WITH
: THE TERMS OF THE CONFIRMING BANK AGREEMENT WITHIN
: FIFTEEN DAYS AFTER RECEIPT BY US OF YOUR NOTICE
: OF UNPAID CLAIM IN THE FORMAT AND ACCOMPANIED BY
: THE ENCLOSURES DESCRIBED IN THE CONFIRMING BANK
: AGREEMENT (OR, IF THAT FIFTEENTH DAY IS NOT A
: TRANSFER (TARGET) SYSTEM, THE NEXT FOLLOWING
: NOTICE OF UNPAID CLAIM.
: MORE THAN ONE NOTICE OF UNPAID CLAIM MAY BE
: PRESENTED.
: THIS STANDBY LETTER OF CREDIT IS SUBJECT TO UCP
: 600 AND SHALL BE GOVERNED BY AND CONSTRUED IN
: ACCORDANCE WITH THE LAWS OF ENGLAND AND WALES.
MT 700:
:78: PLEASE ADD CONFIRMATION BASED ON 100 PCT COVER FROM EBRD.
16
I.R.U
: WE ARE AUTHORIZED BY ABCD BANK : TO ISSUE OUR IRREVOCABLE REIMBURSEMENT UNDERTAKING FOR THE AMOUNT OF
: EUR 00000,00 IN F/O YR GOOD BANK.
: .
: HEREBY WE ISSUE OUR IRREVOCABLE REIMBURSEMENT EUR 00000,00
TO HONOUR YOUR
CLAIM UNDER LETTER OF CREDIT NO :aaaaaaa ISSUED ON ..
: BY ABCD BANK FOR THE AMOUNT OF EUR 00000,00.
: .
: WE HAVE BEEN INFORMED BY THE ABOVE NAMED ISSUING BANK THAT YOU ARE
AUTHORIZED TO PRESENT REIMBURSEMENT CLAIM TO US UNDER THE SAID L/C.
: WE IRREVOCABLY UNDERTAKE TO HONOUR YOUR REIMBURSEMENT CLAIM UP TO
AMOUNT OF EUR 00000,00 PROVIDED YOU CONFIRM TO US THAT
: TERMS AND CONDITIONS OF A/M L/C HAVE BEEN
: COMPLIED WITH OR THE ISSUING BANK HAS ACCEPTED
: THE APPLICANT'S CONSENT TO PAY AGAINST DISCRDOCS.
: .
: OUR REIMBURSEMENT UNDERTAKING EXPIRES ON ………
: ANY REIMBURSEMENT CLAIM MUST REACH
: US BY AUTHENTICATED TELETRANSMISSION AT LEAST 3
: BANKING DAYS PRIOR MATURITY.
: ANY PAYMENT THE MATURITY DATE OF WHICH DOES NOT
: FALL ON A U.S./EC/BY BANKING DAY SHALL BE
: BROUGHT FORWARD TO THE NEXT BANKING DAY.
: .
: ALL CHARGES UNDER THE REIMBURSEMENT UNDERTAKING
: ARE FOR THE ACCOUNT OF THE APPLICANT.
: .
: REIMBURSEMENT IS SUBJECT TO URR 725.
: .
: YOUR CLAIM MUST INDICATE OUR REF.
17
Post Finance SES/OSN 3483/550759 RICEV.IL 99/99/99 ORE 00:00 MSG 700
AVAILABLE WITH..BY.. :41 : A BCABIT21
BY DEF PAYMENT
F:DEFF PAYMENT :42P: ON 360DAYS FROM THE DATE OF SHIPMENT
:78 :
UPON RECEIPT OF CREDIT CONFORM DOCS PLS PAY TO THE BENEFICIARY
BENEFICIARY AT SIGHT AND GRANT US A FINANCING FOR THE PERIOD OF
12 MONTHS FROM THE DATE OF PAYMENT TO THE BENEFICIARY.
.
PROVIDED PRESENTATION OF STIPULATED DOCUMENTS REPAYMENT OF THE
PRINCIPAL AMOUNT TO BE EFFECTED BULLET.
.
YOUR FINANCING COMMISSION IS TO BE CALCULATED AS FOLLOWS: ON THE
AMOUNT OF SET OF DOCS PAID FOR THE PERIOD FROM THE DATE OF
PAYMENT TO THE BENEFICIARY TILL MATURITY DATE AT EURIBOR FOR
RESPECTIVE MATCHING PERIOD FIXED AT TWO BUSINESS DAYS PRIOR TO
THE DATE OF PAYMENT TO THE BENEFICIARY PLUS 0.XX0 PCNT P.A.
COMPOUNDED 365/360 DAYS/YEAR BASIS.
10 PCNT INCOME TAX WILL BE WITHELD BY US IN RESPECT TO THE
FINANCING COMMISSION CALCULATED BY YOUR GOOD BANK.
YOUR FINANCING COMMISSION WILL BE PAID AT THE END OF FINANCING
PERIOD SIMULTANEOUSLY WITH PRINCIPAL REPAYMENT INSTALLMENT.
.
PRINCIPAL REPAYMENT INSTALLMENT AND FINANCING COMMISSION WILL BE
PAID UPON RECEIPT OF YOUR AUTHENTICATED SWIFT MESSAGE INDICATING
ITS EXACT AMOUNT AND DETAILS OF CALCULATION.
18
Discounting Import L/C
TO: UBI BANCA (UNIONE DI BANCHE ITALIANE) SCPA
RE: Assignment of irrevocable L/C Nr. .…….. matur. on……, issued by…… Bank
for a total amount of ……….. – Our Ref. ....
______________________________________________________________________________________
With reference to the above mentioned Letter of Credit, we hereby confirm that our client has assigned their rights to us
and that we have irrevocably and unconditionally assigned to you, accepting your offer price of ....., plus 3 banking
days, plus the amount of USD 150,00 for foreign bank charges.
We hereby represent and warrant that we will notify ...name of the L/C issuing bank... (“the Issuing Bank” of the above
L/C) to pay directly to you any proceeds under the above L/C or accept your instructions in that regard.
Notwithstanding the foregoing, we further confirm that in case of receiving of any proceeds under the above L/C from
the Issuing Bank at maturity, we shall hold such proceeds in trust for your benefit and we shall pay directly to you or
your assignees in accordance with your instructions, for the full face value we received and any interest accrued
thereon, free of any deduction whatsoever from our side.
We further undertake to indemnify you any loss and damages should the documents presented for negotiation under
this L/C be forged, fabricated or fraudulent, or contain any material misrepresentation or no genuine underlying
transaction exists in connection with the L/C or the beneficiary commits fraud in relation to the underlying transaction.
We confirm that all the copies of the documents provided by us under this transaction are authenticated.
Please provide to credit the discounted proceeds to our (USD/EUR/etc) Acct. Nr. xxx with xxx Bank (swift code: xxx).
Kindly acknowledge receipt.
19
Counter Guarantee –MT 760
In consideration of you, UBI Banca , issuing the above guarantee to ( ..beneficiary …) in
the terms stated above, we,…(requesting Bank)…hereby irrevocably and unconditionally
agree to pay to you on your r first written demand an amount equal to and in the same
currency as each sum paid by you under or in connection with the above guarantee, and
we undertake to indemnify you and keep you indemnified against any and all claims,
losses, costs, damages, interest or expenses you may sustain in connection with the
above guarantee, provided that the maximum amount recoverable from us under this
counter guarantee shall not exceed the sum of ...( amount )
All amounts payable under this counter guarantee will not be subject to counterclaim or
set-off and all such payments must be made free and clear and without deduction of any
kind.
This counter guarantee is valid until receipt of your authenticated SWIFT message in
confirmation of release from all liability thereunder.
We agree that this counter guarantee shall be construed and decided in accordance
with Italian law and subject to the jurisdiction of the Court in Brescia (ITALY).
(or, in alternative)
International Rules for Demand Guarantees – URDG 758 ICC Publication.
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