TARIFF Flashcards
gives the seller assurance that he will receive the payment.
letter of credit
is a binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller.
letter of credit
All L/Cs must be opened on or before the date of shipment and only one L/C should be opened for each import transaction.
both statements are true
In opening an L/C
importers shall submit to the AAB the documents listed in Appendix 5.
Ammendment of L/C
need not be referred to the BSP for prior approval.
L/C shall be negotiated and governed by
shall be negotiated in accordance with the terms and conditions set forth in the L/C and shall be governed by the Uniform Customs and Practices on Documentary Credits (UCP 600)
are rules that apply to any documentary credit
Uniform Customs and Practice for Documentary Credits
the official publication which is issued by the International Chamber of Commerce (ICC).
UCP 600
arrangement under documentary collection in which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer fully pays the accompanying bill of exchange or draft
Documents Against payment
Under D/P payment AABs shall
AABs shall advise the importer of the receipt of the complete original shipping documents and effect the release of said documents to the importer upon receipt of payment.
shall remit payment to the supplier through the correspondent bank abroad.
is an arrangement under documentary collection in which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer accepts and signs the accompanying bill of exchange or draft.
Docments Against Acceptance
No aceeptance = no issuance of docs
No payment no issuance
an arrangement whereby the shipping documents are sent and released by the exporter directly to the buyer, without coursing the documents through the banks, upon the buyer’s promise to pay at some future date after shipment
Open Account
is a supplier-buyer arrangement where payment is made within 29 calendar days from bill of lading/airway bill date.
Direct Remittance
These are imports funded by importer’s own foreign currency deposit accounts or those sent by suppliers abroad for which no payment in foreign exchange will be made whether immediate or potential.
Self Funded or No dollar imports
These are importations by export producers of raw materials and accessories/supplies from foreign suppliers/buyers abroad for the manufacture or processing of products destined for export to said foreign suppliers/buyers. These shall also include machinery/equipment and spare parts consigned to the local manufacturer/processor for eventual re-export to the consignor: Provided, That the equipment involved shall be used only in connection with the processing of products for export.
Importations on Consignment Basis
