- Export bills purchase
- Export bills collection
- Bill discounting
- Advising letters of credits
- Transferring Letters of Credits
- Adding Confirmation to letters of credits
- Bills negotiation
- Forward Exchange Contract
- Obtaining Status Reports
- Advisory Services
- Handling of Duty Rebates
Export bills purchase
If your buyers are not willing to carry out their trade transactions under letters of credits you may have to do it under collections. ie
Documents against payments(D/P)
Documents against acceptance(D/A)
Export bills for collection
If the documents are drawn under L/c and not complied with the terms and conditions of the L/c, beneficiary may request the bank to forward the bill on collection/approval basis and to credit the proceeds on receipt from the L/c issuing bank.
Documents which are drawn not under l/co’s also forwarded for collection as per the exporters or drawers request.
- Our team of experts will help you to forward such documents immediately to your buyers through our correspondent banks and continue their follow up action until you receive payment
The exporters or sellers of the goods may agree to sell the goods or services to their buyers on credit terms such as Payments after 30 days, 60 days or 90 days from shipment etc as per their sales contracts. In such circumstances your payment for the exports will be deferred until the agreed period. These type of usance bills may be discounted for immediate credit to meet your cash requirements.
We discount such bills
- Against an approved Limit facility
- On a case by case basis
Our team of experts will continue their follow up action until you receive your payments.
Advising Letters of Credits and Amendments
Letters of Credits received from Banks (overseas and local) are certified for authenticity and advised to the beneficiaries.
- We advise your most expected Letters of credits immediately after receipt from the L/C opening bank.
- If the beneficiary is not our client, facility to advise through their bankers.
- If the L/c’s are not received as per your sales contracts, facility to call for amendments from the opening bank through us.
- When the amendments received authenticity certified and advised to the relevant beneficiaries.
Since Bank of Ceylon has correspondent Banking relations with more than 1,000 well recognized banks all over the world you may insist your buyers to inform their bankers to advise the L/C’s through BoC. You may save some cost and time by doing this.
Transferring Letters of Credits
Transferable Letters of Credits will be transferred to Second beneficiaries on the request of First beneficiary. If the 1st Beneficiary is not in a position to perform as per the L/C, its facilitate them to transfer the L/C to 2nd beneficiary and fulfill their commitment to the buyer.
We transfer such L/C’s to a 2nd beneficiary as per our clients request and help them to continue their business without any interruption with their buyers.
Depending on the type of transfer the 1st beneficiary can substitute his Invoice, Draft etc and present documents to the issuing bank and earn money without doing the exports by him.
When transferring the L/C’s to 2nd beneficiary any or all of the following can be reduced or curtailed.
- Amount of the credit
- Unit price stated therein
- Expiry date
- Latest date for shipment or given period for shipment
- Period for presentation of documents
The percentage for which Insurance cover must be effected may be increased to provide the amount of cover stipulated in the L/C
Adding confirmation to Letters of credit
If the beneficiary / Exporter of the L/c is not satisfied with the L/C issuing bank or the importers country or both of them the beneficiary may request to add confirmation to the credit of a bank in another country or his own country.
When beneficiary requests a bank to add confirmation to the L/C, such bank adds the confirmation for payment under the L/C.
Confirmation constitutes definite and legal under taking to the beneficiary
A confirmed L/C bears the guarantee of payment of two banks.
It is an additional guarantee to the exporter eliminating the payment risks
Since we have global net work of International correspondent banking relations we are in a good position to add confirmations to L/C’s established by many overseas banks.
When customers forward documents drawn under L/c’s our team of experts will check the documents for free of discrepancies to present to the opening bank to obtain reimbursement.
Our quick and efficient service will ensure that your documents are negotiated and your account will be credited immediately.
We also ensure that your documents will be forwarded to the L/c opening bank on the same day of negotiation by means of a fastest courier service.
If the documents are not compliance with the terms and conditions of the L/c, facility to obtain consent from the L/c issuing bank and to negotiate the documents.
Efficient follow up action for your export bills forwarded to the banks until the payment received.
Facility to remit to agents/ intenders commissions at the time of negotiation of bills.
Forward Exchange Contract
Forward Foreign Exchange Contracts will protect the exporter against adverse exchange rate movements. BOC provides expert advice and offers contracts to suit your needs.
Obtaining Status Reports
When you engage in international trade transactions, you must know your customer before entering into a trade agreement. We can assist you by way of obtaining status reports on your buyers through our correspondent Banking network, which help you to assess the credit worthiness of your trade partner. We can also arrange to obtain Buyers’ Reports through independent credit Agencies.
Before entering into a Trade Agreement you can obtain the Advisory Services from BOC (Team of Exports) on Country risks, Opening Bank risks, structuring of L/Cs in a manner to minimize the risks involved in the transaction etc. from our team of experts.
Handling of Duty Rebates
The claims of the exporters to obtain duty reimbursement under the scheme introduced by the Sri Lanka customs are facilitated by this unit.