The Import Letter of Credit is a payment instrument used commonly in foreign trade, and is defined as a conditioned payment order issued by a credit institution (issuing bank) on behalf of one firm (importer/buyer/applicant) in favor of another (exporter/seller/beneficiary), with the commitment to honor payment in favor of the latter, through another credit institution, in exchange for the presentation of the specific documents associated with the sale of goods or provision of services and in strict compliance with the terms and conditions stipulated in the Letter of Credit.
- Mexican firms that import goods and/or services (raw materials, inputs or components for its production processes and/or finished products).
- Public sector firms.
- Offers assurance to the importer/buyer/applicant that it will receive the merchandise in accordance to what was agreed upon with the exporter/seller/beneficiary.
- Assures the seller that payment will be made as long as the necessary documents are presented on time and in the manner required, and in line with the terms specified in the Letter of Credit.
- Elimination of obstacles created by time, place or language, since is it not necessary for the importer to go to where the exporter is in order to assure compliance with the terms and conditions of the purchase.
- Presentation of a properly completed “Application for Issuance of Irrevocable Letter of Credit” (Formato F10), with the application form provided by Bancomext, or acquisition of services through “B@ncomext Trade,” an online Letters of Credit System.
- Presentation of the firm’s legal documentation required by Bancomext for proper client identification (only for the first operation).
- Compliance with credit requirements for requesting a line of credit with Bancomext for the issuance of Letters of Credit, if the amount is above 3 million Dollars, or 100% of the operation’s value through a cash deposit (provision of funds).
- Payment of the corresponding commission. .
Apply for a Letter of Credit at: firstname.lastname@example.org.