Import & Export
Century Commercial Bank Ltd. (CCBL) provides trade services covering import, export and Guarantees services. We have an experience team of trade staffs, who will work with you in a very personalized and professional manner, to ensure international trade transactions; proceed faster, easier and risk-free. Our team will not only process your request but also provide you import information useful to your business as well.
Import Letter of Credit
Documentary Letter of Credit (DC) is a conditional undertaking given by a bank (issuing bank) on behalf of buyer/applicant to pay a seller/beneficiary against stipulated documents provided all terms and conditions are complied. Letter of credit is the most safe and convenient means of payment for the export in all domestic and international trade. CCBL offers domestic and foreign Letter of Credit of two types:
- Sight LC: The Letter of Credit which needs to be settled/ retired within 5 banking days after the sight of the documentary bill following the date of presentation provided that the documents are clean.
- Usance LC: The Letter of Credit which needs to be settled/retired in a specific future date only after acceptance of the presented documents
Import Letter of Credit Cycle
- The buyer and seller negotiate the deal for purchase/sell of goods/ services and approach the LC issuing bank to open an import letter of Credit (LC)
- The issuing bank issues the Letter of Credit and sends it to the advising bank for advising the LC to the beneficiary, the advising bank advises the LC to beneficiary for shipment of goods.
- The exporter/seller exports the goods as per the terms and conditions of the LC and submits the relevant documents as stated in the LC to the negotiating/nominated bank
- The negotiating bank forwards the original documents to issuing bank for payment under LC
- The issuing bank obtains the payment from the applicant/buyer and sends the payment to the negotiating bank to further credit the payment to the beneficiary/seller.
- The issuing bank provides the LC documents to the applicant/buyer for the release of goods from the customs.
Pre-requisites for issuing import LC
Before issuing LC, applicant will require to have approved credit limits sanctioned by the bank. In line with Nepal Rastra Bank regulations, we will require the following documents along with our dully filled up LC application form for establishing LC:
- Proforma Invoice/ Sales Contract/ Indent with mandatorily mentioned following information:
- Goods Name, brand and model number
- Country of Origin of goods
- Quantity, Unit Price and Total amount
- Incoterms (CIF, FOB, CFR, EXW…etc)
- Payment type- Sight Payment, Usance with tenure or if deferred payment if the payment is to be made in mixed basis (for e.g. certain percent payment after documents arrival and certain percent payment after arrival of goods…etc)
- At least eight digit harmonic code number of goods
- Full name, address, contact no., e-mail address of the importer/buyer and exporter/seller
- Exim Code No. of the applicant/buyer
- Bi.Bi.Ni. form number 3
- Firm/ Company registration certificate
- PAN certificate
- Board Minute (If applicable)
- Memorandum of Association (MOA) (If applicable)
- Article of Association (AOA) (if applicable)
- Citizenship of the borrower
- Latest Tax lodge/clearance certificate
Export Letter of Credit
CCBL offers export LC advising and negotiation services. Under export LC negotiation, we purchase sight bill of exchange and discounting of usance bill of exchange. We negotiate export bills subject to all terms and conditions under the letter of credit are complied with.
There are various other NRB provisions regarding import/export of goods from India and other third countries. We will help you to know these provisions so as to make you feel at ease while conducting import/export business.
Letter of Guarantee
A Letter of Guarantee is an irrevocable promise made in writing by one person (guarantor or surety ) to another party( the beneficiary) to answer for the debt or default of a third party (principal debtor).
- Bid Bond Guarantee
- Performance Bond Guarantee
- Advance Payment Guarantee
- Credit Supply Guarantee
- Credit Line
Documentary Collection offers low-cost but secure alternatives to letter of credit to trade. It is easy and convenient to route documentary collection through CCBL. The bank offers both inward and outward documentary collection services in a very competitive pricing in compliance with ICC publication Uniform Rules for Collection number 522 and Nepal Rastra Bank directives for both sight (DAP) and usance (DAA) collection documents.
For further information, please contact
Central Trade Finance Department
Century Commercial Bank Ltd.,
Head Office, Putalisadak, Kathmandu, Nepal
Tel: 014445062/4412579, Fax: 01444142