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Trade Finance [Back]

Global IME Bank Limited provides wide range of trade services covering import, export and Guarantees services. We have an experience team of trade staffs, who will work with you in a very personalized and professional manner, to ensure international trade transactions; proceed faster, easier and risk-free. Our team will not only process your request but also provide you import information useful to your business as well.

Import Letter of Credit

Documentary Letter of Credit (DC) is a conditional undertaking given by a bank (issuing bank) on behalf of buyer/applicant to pay a seller/beneficiary against stipulated documents provided all terms and conditions are complied. Letter of credit is the most safe and convenient means of payment for the export in all domestic and international trade. Global IME Bank Limited offers inland and foreign Letter of Credit of two types:
 
  • Sight LC: The Letter of Credit which needs to be settled/ retired within 5 banking days after the sight of the documentary bill following the date of presentation provided that the documents are clean.
  • Usance LC:  The Letter of Credit which needs to be settled/retired in a specific future date only after acceptance of the presented documents
    • Discounting LCs: The Usance Letter of Credit which is discounted by Global IME Bank Limited with certain discounting interest, net of payment which is made at sight to the beneficiary and payment by the applicant to us at specific future date only after acceptance of the presented documents.

Import Letter of Credit Cycle
 
  • The buyer and seller negotiate the deal for purchase/sell of goods/ services and approach the LC issuing bank to open an import letter of Credit (LC)
  • The issuing bank issues the Letter of Credit and sends it to the advising bank for advising the LC to the beneficiary, the advising bank advises the LC to beneficiary for shipment of goods.
  • The exporter/seller exports the goods as per the terms and conditions of the LC and submits the relevant documents as stated in the LC to the negotiating/nominated bank
  • The negotiating bank forwards the original documents to issuing bank for payment under LC
  • The issuing bank obtains the payment from the applicant/buyer and sends the payment to the negotiating bank to further credit the payment to the beneficiary/seller.
  • The issuing bank provides the LC documents to the applicant/buyer for the release of goods from the customs.

Pre-requisites for issuing import LC

Before issuing LC, applicant will require to have approved credit limits sanctioned by the bank. In line with Nepal Rastra Bank regulations, we will require the following documents along with our dully filled up LC application form for establishing LC:
 
  • Proforma Invoice/ Sales Contract/ Indent with mandatorily mentioned following information
    • Goods Name, brand and model number
    • Country of Origin of goods
    • Quantity, Unit Price and Total amount
    • Incoterms (CIF, FOB, CFR, EXW…etc)
    • Payment type- Sight Payment, Usance with tenure or if deferred payment if the payment is to be made in mixed basis (for e.g. certain percent payment after documents arrival and certain percent payment after arrival of goods…etc)
    • At least eight digit harmonic code number
    • Full name and address of the applicant/buyer and beneficiary/seller 
  • Bi.Bi.Ni. form number 3
  • Firm/ Company registration certificate
  • PAN certificate
  • Board Minute (If applicable)
  • Memorandum of Association (MOA) (If applicable)
  • Article of Association (AOA) (if applicable)
  • Citizenship of the borrower
  • Latest Tax lodge/clearance certificate

Export Letter of Credit

Global IME Bank offers export LC advising and negotiation services. Under export LC negotiation, we purchase sight bill of exchange and discounting of usance bill of exchange. We negotiate export bills subject to all terms and conditions under the letter of credit are complied with.

Letter of Guarantee

A Letter of Guarantee is an irrevocable promise made in writing by one person  (guarantor or surety ) to another party( the beneficiary) to answer for the debt or default of a third party (principal debtor).

Global IME Bank Limited provides international guarantees besides local guarantees. We have our correspondent bank in Asia, America and Europe. We provide below mentioned guarantees:
 
  • Bid Bond Guarantee
  • Performance Bond Guarantee
  • Advance Payment Guarantee

Documentary collections

Documentary Collection offers low-cost but secure alternatives to letter of credit to trade. It is easy and convenient to route documentary collection through Global IME Bank Limited. The bank offers both inward and outward documentary collection services in a very competitive pricing in compliance with ICC publication Uniform Rules for Collection number 522 and Nepal Rastra Bank directives for both sight (DAP) and usance (DAA) collection documents.
 

For further information, please contact

Central Trade Finance Department
Global IME Bank Limited
Corporate Office, Kamaladi, Kathmandu, Nepal
Tel: 014437227/4437228, Fax: 014444770

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