Letter Of Credit Accounting Procedures

1. The issuing bank opens the processing procedures for the letter of credit. (1) accepting the application and examining the applicant's application for opening a letter of credit to the applicant's Bank, he shall fill in the application form of a three way open certificate (Appendix I) and sign the applicant's undertaking (Appendix two) on the back of the opening application form, together with the relevant purchase and sale contract to the bank.

The first part of the application form accepts the receipt, the applicant is retained; the second joint certificate is based on the accounting department, and the third part of the credit card is retained.

Upon receipt of the issuing bank, the first opening application is stamped with the official seal of the business and submitted to the applicant, and the following contents are examined: whether or not the items recorded in the application 1. are up to the requirements; whether the 2. applicant is a signer, whether the signature is in line with the signature of the reserved bank; whether there is any contradiction between the 3. clauses; and whether the relevant provisions in the application form are consistent with the purchase and sale contract.

After the audit is correct, the applicant agrees to collect the deposit from the applicant according to the creditworthiness of the applicant, or at the same time require the applicant to provide other security.

When a deposit is deposited with a bank, a cheque and a triple entry bill should be submitted. The cheque should be used as a debit voucher. First, the bill should be added to the bank to make the receipt. The second party will be included in the bill as the credit voucher and the third entry bill as the credit voucher attachment.

The entry is: the applicant, the applicant, the applicant, the guaranty or the letter of guarantee, the register of memorandum account, the important or valuable document, and the relevant documents.

(two) the issuing bank will open a letter of credit (Appendix three) based on the second letter of credit and the letter of credit (hereinafter referred to as the "measures").

When a letter of credit is opened, a letter of credit is issued, a duplicate of the first letter of credit, a deposit of the notifying bank, the original of the second letter of credit, a beneficiary, a copy of the third letter of credit, a deposit of the issuing bank, and a notice of the fourth letter of credit.

The issuing bank shall add a mortgage to the first, second or third letter of credit, and affix a letter of credit and a personal seal on the first, second letter of credit.

After reexamination, the first, second letter of credit is jointly sent to the pport department. The fourth official seal is affixed to the applicant's official seal.

We will open a letter of credit by two letters of credit, a copy of the first joint letter of credit, and the issuing bank. The second letter of credit will be retained by the applicant.

The issuing bank will send the letter of credit to the notification bank by telex, and the second couplet will submit the business seal to the applicant.

After opening a letter of credit or opening a letter of credit, the issuing bank will issue a sight (or forward) letter of credit in accordance with the third letter of credit, the first letter of credit, or the first letter of credit, and collect the issuing fee and the post and Telecommunications fee according to the regulations.

Two, the procedures for handling the amendment of the letter of credit. (1) accepting the application for amendment of the letter of credit and examining the applicant's application to amend the letter of credit to the issuing bank, he should fill in the application form for a three letter of credit amendment (Appendix five), and endorse the letter of application on the back of the letter of application (Appendix six), and submit it to the issuing bank together with the written proof of the consent of the beneficiary.

The first is the receipt of the receipt, the applicant is retained; the second amendment is based on the retention of the accounting department, and the third amendment is kept and the credit department remains.

If the issuing bank accepts the amendment, it should examine whether the terms of the application are revised, whether it is in line with the provisions of the "measures", whether it is in conflict with other provisions of the letter of credit, whether it is an increase or reduction or amendment.

The additional guarantee for the increase is compared with the method of providing guaranty in (1).

The issuing bank may reduce the corresponding margin according to the applicant's creditworthiness.

(two) open the amendment to the letter of credit. The issuing bank will open an amendment to the letter of credit (Appendix seven) according to the amendment of the second letter of credit and the provisions of the measures.

When a letter of credit is amended, a letter of credit is amended, a copy of the first letter of credit is amended, and the bank is retained. The original of the second amendment to the letter of credit, the beneficiary; a copy of the amendment to the third letter of credit, the retained Bank of the issuing bank; and the notice of amendment to the fourth letter of credit, which is retained by the applicant.

The issuing bank shall add a mortgage to the designated place of the first, second and third letter of credit amendment, and affix a letter of credit and a personal seal to the amendment to the first, second letter of credit.

After the audit is correct, the first, second amendment will be sent to the traffic department and the official seal of the fourth party will be handed over to the applicant.

When you open the amendment to the letter of credit, you will apply for the amendment of the letter of credit two times, the copy of the first amendment to the letter of credit, the deposit of the issuing bank, and the amendment of the second letter of credit, which is retained by the applicant.

When the issuing bank adds a mortgage and checks it correctly, it sends the information of the letter of credit to the advising bank by telex. The second letter of credit amendment is affixed with the business seal to the applicant.

After opening a letter of credit or opening a letter of credit amendment, the issuing bank shall, according to the third letter of credit, the amendment of the letter of credit or the first amendment to the letter of credit, make an outward (or forward) letter of credit.

Three, the advising bank advises the processing of the letter of credit. (1) the notice of the letter of credit. 1.. Verify the signature and the cipher. The advising bank receives the letter of credit from the issuing bank, checks the letter of credit and checks whether it is correct or not.

If the letter of credit is opened by electricity, check whether the mortgage is correct.

After no mistake, the original letter of credit is issued with the words "duplicate" marked in duplicate.

Register "letter of credit notification register" according to letter of credit and open copy of the letter of credit.

The 2. letter of credit, the letter of advice, the letter of credit, and the confirmation of the authenticity of the letter of credit within the specified time, and the making of the two letter of credit (Appendix eight) shall be amended. The first notice is to affix the business seal together with the original letter of credit to the beneficiary, and sign it by the beneficiary in the letter of credit notification register. The second joint notice is kept and kept together with the copy of the letter of credit, which is specially kept and charged to the beneficiary according to the regulations.

3., after checking the signature, it is necessary to send the letter of credit back to the issuing bank to reopen the letter of credit. If the deposit is not in conformity with the requirement, the issuing bank should be inquired in time. After receiving the check, the issuing bank will check it in accordance with three and (2.).

(two) the notice advising bank of the letter of credit has received the amendment to the letter of credit issued by the issuing bank, which is treated in accordance with three and (1.).

After confirming the authenticity of the surface, a two letter of credit amendment notice (Appendix nine) is made. First notice, the business seal and the letter of credit amendment are issued to the beneficiary and signed by the beneficiary in the "letter of credit notification register". The second joint notice is kept and kept together with the copy of the letter of credit, which is specially kept in custody and is charged to the beneficiary according to the regulations.

After checking the signature or secret pledge, it is treated according to three, (1) 3..

Four, the beneficiary's account opening process is handled by the beneficiary's account bank. (1) the processing of negotiation documents. 1. accept the bill and audit the beneficiary's application for negotiation with the applicant bank. The application form for the negotiation of two letters of credit / entrusted receipts (Appendix ten) is to be filled. The first beneficiary is retained, the second joint bank is retained, and a five party Negotiation Certificate (Appendix eleven) is added, the first joint debit voucher, the second credit union certificate, the third party credit certificate, the fourth joint account collection notice, the fifth joint maturity card.

The beneficiary will affix the reserved bank signature with the letter of credit, the letter of credit amendment notice, the original of the letter of credit, the amendment of the letter of credit and the documents to the negotiating bank on the first letter of credit / entrust receipt application and the first negotiation certificate.

The negotiating bank shall examine carefully: (1) whether the letter of credit is negotiable letter of credit for the bank; whether or not the letter of credit is negotiated by the bank; (2) whether the documents are negotiated during the time of presentation or the validity period of the letter of credit; (3) the completion of the letter of credit negotiation / collection application and the contents of the negotiation voucher; (4) whether the beneficiary is signatures, whether the signature is in line with the signature of the reserved bank; whether the 5 documents are complete and whether they are in conformity with the terms stipulated in the letter of credit; (2) whether the letter of credit is a forward letter of credit.

(2.) the negotiation bank should calculate the negotiation interest and the actual negotiation amount according to the regulations, the first negotiation certificate is the debit voucher, the second joint Negotiation Certificate is the credit certificate of the deposit account, the third Negotiation Certificate is the credential voucher of the revenue revenue account.

The entry is: negotiation, payment, payment, payment, payment, payment, payment, payment and payment. The beneficiary's account of the beneficiary will be charged to the negotiating bank after negotiation.

(2) the negotiating bank shall indicate the date of negotiation, business number, amount of negotiation, the amount of negotiation, the balance of the letter of credit, the name of the negotiating bank, and the official seal of the negotiating bank on the back of the letter of credit (Appendix four). Second, the business seal and the fourth party Negotiation Certificate, together with the letter of credit, the letter of credit amendment notice and the original letter of credit, and the amendment to the letter of credit, are returned to the beneficiary on the application form of the joint negotiation / entrustment receipt.

(3) after negotiation of the pfer procedures, the negotiating bank will make a two letter of sending notification (Appendix twelve). The first official seal will be accompanied by the completed certificate of entrustment receipt, together with the documents, and sent to the issuing bank for collection. The second negotiating bank will be retained and processed according to the procedures of the entrusted collection.

The 3. negotiation bank fails to handle the documents discrepancy. (1) the negotiating bank's audit documents are found to be inconsistent, and can be negotiated with the beneficiary's amendment after agreeing with them, compared with four, (1) 2..

(2) the negotiating bank's audit documents are found to be inconsistent. If the beneficiary is not satisfied after the amendment, the refusal to negotiate shall be made by a two party refusal of negotiation / discrepancy notice (the format is drawn up by each bank), indicating the reasons for refusing to negotiate, and the remaining one party. Another official seal will be stamped together with the relevant documents to withdraw the beneficiary.

(two) entrusting the receivables to the bill, the beneficiary will entrust the opening bank to submit the documents to the issuing bank, and fill in the entrusted receipts and letters of credit negotiation / application for collection, together with the original of the letter of credit, the original of the letter of credit amendment, and the relevant documents to the opening bank.

The opening bank has completed the examination and fill in the requirements, and the documents are complete. The first letter of credit negotiation / entrustment receipt application is sent to the issuing bank together with the relevant documents together with the entrusted receipts.

A single notice or the original receipt, the original letter of credit, the original letter of credit amendment and the letter of credit negotiation / entrustment collection application sent by the beneficiary bank, shall draw the letter of credit for the sole purpose, and examine the following contents within the specified time: whether the 1. letter is issued by the bank; whether the 2. documents are submitted within the stipulated time of presentation or the validity period of the letter of credit; whether the claim amount of 3. is in line with the letter of credit; whether the 4. documents are in conformity with the accompanying documents; whether the 5. negotiating bank is a designated bank; whether the documents recorded in the accounts receivable are correct. Five, the issuing bank handles the processing of the invoice. (1) the documents correspond to the payment in full. The issuing bank receives the entrusted collection vouchers, documents and documents sent by the negotiating bank.

The purpose of the examination is to comply with the following documents: (1.) the payment of a letter of credit at sight, the payment of a letter of credit at sight, the payment of a letter of credit at sight. The entry is: the applicant of the letter of credit, the applicant of the letter of credit, the deposit account of the applicant, the applicant, the bank, the bank, the issuing bank and the issuing bank, after completing the payment procedures, the two letter of credit must be filled out in the form of a single letter (Annex thirteen). The first official seal will be affixed to the business seal, together with the relevant documents to be issued to the applicant and signed by it. The second issuing bank will be retained, and the account should be kept on the off balance sheet basis.

Where there is a mortgage, pledge or guarantee, it shall be refunded, and the account book should be kept, and the important or valuable document should be paid.

2. days of L / C processing, the issuing bank shall generate the electricity from the beneficiary bank (including negotiating bank) within the stipulated time, and negotiate with the beneficiary and confirm payment at maturity.

Payment on maturity date is five, (1) 1., and accounting for off balance sheet items.

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