AYA Letter of Credit

AYA IMPORT LETTER OF CREDIT

Fast and efficient processing of Letter of Credit transactions for international trade settlement by the buyer/importer

Key Product Information

Description
  • Used as a means for international trade settlement by the buyer/importer for importation of goods into Myanmar
  • Letter of Credit (LC) issued by the issuing bank on behalf of the buyer/importer in favour of the seller/exporter
  • LC is an undertaking by the Bank at the request of a Buyer to honour claims by the Seller provided that the documents relating to a shipment of goods are presented within a specified time and in accordance the terms and conditions of the LC
  • LC best where both parties totally does not trust each other and need comfort of a reputable third party e.g. banks
  • Ideal for commercial businesses e.g. trader wholesalers, manufacturers, contractors
Benefits
  • Customer does not have to pay in advance for goods purchased
  • Customer can set conditions in the LC that exporter must be adhered to before settlement is made i.e. ability to control when, how and where the goods are shipped
  • Subject to UCP 600 internationally recognized rules and standards governing LCs.
  • Use of bank expertise and worldwide channels to issue and advice LCs expeditiously and a straight forward process, fast and efficient processing of LC transactions
  • Banks will not make settlement unless correct documentation is presented
  • Possible access to bank finance on presentation of documents
  • Customers can now source for their goods from countries all over the world, even from sellers unknown to them
Key Features
Eligible Customers Business incorporated in Myanmar
  • Sole-Proprietor or Partnership
  • Limited Company
  • Joint Venture
  • Individuals

 

Currencies
  • US Dollar
  • Euro
  • Singapore Dollar

 

LC only available for customer importer who has an approve Facility with the bank.
The basis of application for facility may be in two ways:

Transaction Basis (Ad Hoc)

  • Where NO trade line/facility is established
  • Against 100% cash collateral
  • Available on per transaction basis
  • Transaction ends when settlement is made by payment against the cash collateral

Permanent Line

    • Where trade line/facility is established
    • Usually against approved collateral e.g. property or fixed deposits.
    • Available on continuing basis
    • Facility subject to yearly review

 

General Requirements

Initial Deposit

  • Customer must maintain account with AYA bank
  • Applicable foreign exchange rate is in accordance with daily Board Exchange Rate of AYA bank
  • For outward telegraphic transfers:
    • Customer must have sufficient funds in foreign currency to effect payment
    • Customer must complete Remittance Application Form for outward remittance
    • Purpose of transfer must be declared
    • Supporting documents required for outward remittance

 

Pricing

Please contact our branches or Trade Centre for more information.
 



ibanking

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AYEYARWADY BANK Branches