Letter of Credit (L/C) |
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It is a written undertaking by issuing bank (from a
foreign bank) to be issued, at the request of an
applicant (customer of the foreign bank), who is
buyer or importer), in favour of a beneficiary –
customer of Dashen Bank (who is seller/supplier/
exporter) to effect payment to the latter against
presentation of shipping documents which comply to
terms and conditions stipulated in the text of an
L/C.
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Documents required for
Permit Approval |
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a) Duly signed contract by seller & buyer
b) Authenticated message of L/C opened.
c) Seller's invoice
d) Export License Valid for the year
e) Tax registration certificate (TIN certificate)
f) Export permit application form duly filled,
signed & stamped (as appropriate) by the customer.
g) If the export is Teff or Berbere an undertaking
letter from the exporter that the goods will be
unloaded as mentioned in the export permit
(excluding Djibouti and The Sudan)
h) NBE issues delinquent list of exporters
periodically. Customer’s name should not appear in
the delinquent exporters list of NBE for the period.
If the name appears, there should be subsequent list
indicating the given customer has cleared all
outstanding items at NBE.
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Expectations from exporters on L/C basis |
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a) Exporter should know foreign counter part as
detail as possible with regard to financial
soundness, reliability, integrity, full address,
etc.
b) Exporter should insist on opening of each L/C
from a bank which has correspondent banking
relationship with Dashen Bank. L/Cs more preferably
should be confirmed by a/c maintaining correspondent
bank.
c) Exporter should go through text of L/C opened in
his favor and make sure that compliance can be met
without doubt. Otherwise, amendments need to be
requested from opener before as soon as L/C is
received or at the latest long before shipment of
consignments.
d) Sales/Purchase contract should exist between the
two parties (importer and exporter).
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