Export Documentary Credit

An Export Documentary credit is a documentary credit settlement service provided by CEXIM as the exporter's bank in accordance with the documentary credit issued by the importer's bank. Export documentary credit mainly provides services such as advising documentary credit, examining documents, contacting other banks, presenting documents and collecting proceeds.  

Our Service: 1. Checking the apparent authenticity of the documentary credit received, advising the documentary credit and reminding the exporter of unfavorable terms; 2. Confirming the documentary credit; 3. Transferring the documentary credit; 4. Examining the beneficiary’s documents and presenting documents for payment; 5. Enquiries, collecting proceeds and interests, adding or replacing documents; 6. Available finance services such as negotiation, packing loan, export bill advance, credit under short-term export credit insurance, forfeiting and etc. 

Benefits for Exporters 

Securing the Collection of Proceeds: Credit risk of the buyer is replaced by that of the bank, thus mitigating the transaction exposure; 

Accelerating Cash Flow: The exporter can have access to proceeds once presentation is complying, hence speeding up the trade cycle; 

Low-Cost Financing: With a documentary credit as a settlement method, a comprehensive range of financing options can be easily available to an exporter, including pre-shipment finance (packing loan) and post-shipment finance (bill advance, discounting). Besides, the cost of these options is lower than that of other loans; 

Shifting Charges: Bank charges under the documentary credit are often for the account of the importer. 

When Do You Choose Export Documentary credits? 

The exporter lacks the information or trust about the importer’s creditworthiness and seeks for a payment undertaking from the bank; 

The exporter is shortage of funds and needs finance service from CEXIM. 

Tips 

Please require the importer to choose the issuing bank with high credit standing, and avoid “soft clauses” which may be unfavorable to you; if you are still unable to trust the issuing bank, you can contact us for adding confirmation to the documentary credit; 

Please review the documentary credit upon your receipt to determine if its terms and conditions are acceptable. If not, you should contact the applicant and request an amendment; 

Please prepare the documents strictly complying with the documentary credit so as to receive the proceeds or finance service timely.