Скачать или смотреть Back To Back L/C কি? - What is Back To Back Letter of Credit?

What is Back To Back Letter of Credit? The back-to-back LC is the opening of one or more new imported LCs against the original LCs or the exporting LCs at the request of the domestic exporters for the collection of raw material for the manufacture of garments as per the orders of foreign buyers. Such LCs are usually opened with zero margins. The government of the People's Republic of Bangladesh has been providing such special facilities to exporters since 1973 due to a lack of cash in the hands of exporters for the purchase of readymade garments such as fabrics, yarn, buttons, hangers, etc. The main advantage of this is that the suppliers of raw materials agree to sell the rest of the products as it is a government decision and the banks take responsibility. The value of this LC is paid 30, 60, 90, 120, or 180 days after the repatriated price against the export. Domestic exporters offer to open back-to-back LCs by depositing them in the bank (keeping lien) after receiving export LCs from abroad in their favor. The value of such imported bonds is paid from the export money. Unlike Cash LC, the issuing bank does not need to pay its own status or central bank status.