A Domestic Documentary Credit is a settlement method where CEXIM issues a conditional payment undertaking to the domestic seller (the supplier) upon application from the domestic buyer (our customer), and promises to carry out the payment undertaking to the supplier on the complying documents presented within the specified time.  

Our Service: Issue of documentary credits (sight, usance, negotiation, confirmation and etc), amendment, examination of documents, payment/acceptance or dishonor and etc. 

Benefits for Buyers 

Facilitating a Deal: The participation of the bank solves the lack of trust between buyers and sellers, thus greatly enhancing the chance to sign a contract; 

Improving the Bargaining Power: A documentary credit secures the businesses by bank credit instead of buyer credit, thus enhancing the buyer’s bargaining power; 

Reducing the Funds Tied Up: The buyer can pay the deposit partly during the issue of documentary credit and pay the balance later for the release of documents. Under a usance documentary credit, the buyer can borrow the documents from the issuing bank and resale the goods before the payment on the maturity date, reducing the funds tied up in the business.

When Do You Choose Import Documentary credits? 

The commodity to be traded is in a seller’s market and the seller requires settlement by documentary credit; 

Both the buyer and the seller wish each other to be bound to carry out the duty in the trade; 

Both the buyer and the seller wish to finance more working capital to solve the lack of cash. 

Tips 

Before applying for domestic documentary credit in our bank, kindly note that a credit limit is required; 

Please provide the following documents: application form for issue of documentary credit, commercial contract, other documents required by the People’s Bank of China, etc.