What is an export accreditation?

Export Accreditation is the designation of the exporter's bank to the commercial document issued on behalf of the importer and guarantees the payment for the purchased goods. In the international trade, two banks are involved in the sales transaction. The issuing bank creates a letter of credit on behalf of the importer or buyer and calls it an import letter. On the other hand, the transaction is an advisory bank by a bank for an exporter or seller who receives a letter to process payment from the Bank. Bank counseling calls a letter by an export letter. In the general sense, the letter of credit is similar to a certified check that guarantees the payment by the bank if certain conditions are met in advance, so the seller can deliver goods that the payment is held in the storage of an unsurpassed third party. Once the sales contract is signed between the Tdovozce and the exporter, the importer, he takes his bank to let the letter of credit release. The issuing bank refers to the letter as an import credit letter because it deals with the transaction import party.

The importer usually converts the accreditation exporters. At this point, the letter exists on the export side of the transaction. The exporter delivers the goods and takes the law and letter to its bank to the Counseling Bank. Counseling of banks refers to the letter as an export credit letter, because the obligations that will be pre -retractable to complete the transaction are exclusively an exporter. The Advisory Bank submits documents to the bank and accepts the relevant payment in exchange.

Bank issuance is handed over to the Konosament received from the Advisory Bank or the importer of the importer who uses it to claim Goods from the shipping company. The export accreditation eliminates the risk of transporting goods and paying money to foreign parties by inserting banks into a transaction to act as an agent of custody. The issuing bank and consulting bank are bound by the exact conditions described in the letter. There is no real possibility that one party can cheat the other by accepting payment without transporty goods or use of goods without transfer of payment.