This is a facility provided by the bank to its import customers to enable them import the goods and services from abroad without necessarily making payment in advance to the exporter. Benefits include:

Payment is guaranteed by both the issuing bank and the confirming bank as long as compliant documents are presented.

Mitigates the buyer/country risks.

Can allow multiple/continuous shipments.

Allows access to other products e.g. pre-shipment finance and structured finance.

Quality of products and price guaranteed by an independent pre-shipment inspection company.

Ensures delivery is done within schedule and payment date is fixed.

 

Requirements

· Available to Family Bank customers.

· Import LC opening.

· A credit facility or cash margin.

· Declaration payment for imports form duly signed by the customer.

· Pro forma invoice from the seller or provider of services.

· Copy of Import Declaration Form (IDF).

· Certificate of insurance or copy of marine insurance policy, if covered locally.

· LC application form duly signed.