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FROM THAILAND TO THE WORLD:

The bank will issue a letter of credit in favour of  the seller to assure the payment for the cost of goods sold. If the seller delivers the goods to the buyer and acts in accordance with the conditions agreed upon by both the buyer and the seller as specified in such a letter of credit, the bank makes payment according to the letter of credit. The issuance of a domestic letter of credit helps facilitate business conduct between the buyer and the seller and ensues safety in transacting goods between the two parties.

The bank issues a letter of guarantee to its client by making a promise to the recipient (receiver) a  guarantee that if the client acts in compliance with the terms and conditions as agreed upon in the letter of guarantee. This prevents damage to the receiver of the letter of guarantee and if the client fails to make payment, the bank will make payment to the amount specified in the letter of guarantee. eg, guarantee of bidding tender, guarantee of construction contract, guarantee of payment for electricity, etc. The method of issuing a letter of guarantee helps  the client & avoids cash as a guarantee.It also acts as a safeguard between both parties.

The buyer and seller agree terms, including means of transport, period of credit offered, latest date of shipment and the relevant Inco-term to be used.

The buyer applies to the bank for a letter of credit to be issued.

The bank will then evaluate the buyer's credit rating, and may require cash cover and/or reduction of other lending limits.

The issuing bank will issue a letter of credit. This will be sent to the advising bank by airmail, telex or SWIFT.

The advising bank will establish authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary).

The advising bank may confirm the letter of credit, i.e. add its own payment undertaking.

The seller should check that the letter of credit matches the commercial agreement, and that the terms and conditions can be satisfied in goodtime.

If there is anything that may cause a problem, an amendment should be requested.

The seller ships the goods and gathers together all the documents asked for in the letter of credit including the invoice, bill of lading, insurance policy certificate, as well as the certificates of origin and quality.

Before presenting the documents to the bank, the seller should check them for discrepancies against the letter of credit, and correct the documents where necessary.

The documents are presented to one of the banks, usually the advising bank.

The advising bank checks the documents against the letter of credit. If the documents are compliant, the bank pays the seller and forwards the documents to the issuing bank.

The issuing bank will also check the documents. If they are in order the issuing bank will reimburse the seller's bank immediately.

The issuing bank debits the buyer and releases the documents (including transport document), so that the buyer can claim the goods from the carrier.

It should be noted that the letter of credit refers to documents representing the goods, and not the physical goods themselves. The banks do not examine the goods on behalf of their customers but instead only care about the documents representing the goods.

HOW ITS DONE: 

 
Irrevocable Letter of Credit

To buy goods using a  letter of credit, the buyer must meet terms and conditions that are acceptable to both parties. Compliance with these terms and conditions will ensure prompt shipment of buyer’s order. Any deviations from the terms and conditions without our agreement may result in additional bank charges and a delay shipment until the Letter of Credit can be amended.

bullet We require an irrevocable commercial letter of credit with the following as beneficiary:
Asia Trading Post Co Ltd.
P.O.Box 264, Prasing P.O.
bullet Muang. Chiangmai 50200. Thailand
bullet Our L/C term is at sight.
bullet Preferred advising and negotiating banks.
- Bangkok Bank Public Company Limited
- Thai Farmers Bank Company Limited
bullet All bank charges outside Thailand, any discount and acceptance charges are on account of the buyer.
bullet All documents to be in English. Documents presented within 21 days after B/L date.
bullet If trade term is CIF basis, you should allow us to select the freight forwarder.
bullet Usual terms FOB Bangkok.

Unless otherwise stated, the Letter of Credit must be subject to the Uniform Customs and Practice for Documentary Credits.

Opening the Letter of Credit

bullet Description of goods: The latest shipment date from the opening date of letter of credit as well as the expiration date from the last shipment date are subject to prior negotiation.
bullet Partial shipment allowed
bullet Trans-shipment allowed
bullet Documents:
-Commercial invoice : 1 original, 2 copies
-Packing list : 3 copies
-B/L or Airway Bill : 3 copies to include
(i) Letter of Credit number
(ii) Consignment to issuing bank
(iii) Marked freight collect, notify applicant (if term is F.O.B)
bullet If required, Certificate of Origin is Thailand

2. Wire transfer

Payment should be made to the address stated on the invoice. We have outlined a  guideline for remittance.
Account name : Asia Trading Post Co., Ltd.     Srinakornping Branch
Account No. : 252-3-162531
Bank : Bangkok Bank Public Company Limited, Srinakornping Branch, Thailand

3. Payment in advance

Payment must be received prior to release of shipment. Please remit payment via wire transfer according to our account information stated above.

4. Export Terms: 

Lof C at sight. FOB Bangkok.

email us: exports@asiatradingonline.com 

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N.B. Complete law services via our NEW Thai Lawyer partner . (re: Alien Business Law: NEC Announcement 281 Cat A prohibited to foreigners). However under the terms of our  Company License Asia Trading Post (Co Ltd)  provide : 1. Cat 34 lawyer services  &2.  Cat 35.consultancy services.

 COPYRIGHT: No parts or parts of this website may be copied, printed or circulated for publication in any form or part of without the express written permission of Asia Trading Post Co Ltd. Please also note all Thailand affected pages which include eg. law, immigration, visas can not be used unless  written permission is obtained from both 29 Tanin Co Ltd--Law Office & also Asia Trading Post Co Ltd by way of contract.  All infringements will be an infringement of privacy and our company will act accordingly. See FAQs