Letters of Credit
Letters of Credit (L/C) to purchase goods and services are often required when you do not have an "open account" with Gulen Technology Co., Limited . A Letter of Credit is a document issued by a bank guaranteeing the payment of a company's draft up to a stated amount for a specified period of time provided certain conditions are met. A Letter of Credit is a highly standardized document which has evolved over many years into a reliable method of effecting payment for commercial transactions throughout the world.
What to do...
1. Go to your local bank and complete an application for a Letter of Credit (sometimes referred to as L/C). Please keep the following in mind when preparing the application:
The Letter of Credit must be irrevocable - meaning that it cannot be revoked or altered.
All Letters of Credit must be payable in U.S. dollars (US$) only.
The amount of the Letter of Credit should be preceded by the words "about or approximately. This phrasing allows a 10% tolerance in the value if needed. Without this phrasing, there is absolutely no tolerance in the amount of the Letter of Credit. Therefore, any variation, no matter how slight will require that the Letter of Credit be amended, costing you and Gulen Technology Co., Limited additional time and money.
Credits should always be specified payable at the sight with instructions that payment will be made against presentation of the beneficiary's documents at the counter of the confirming bank.
For identification purposes, all Letters of Credit should list the purchase order (PO) number(s) as part of the merchandise description. This saves time and correspondence costs involved in identifying orders paid for by a Letter of Credit.
Because Gulen Technology Co., Limited has warehouse locations throughout the world, the Letter of Credit should allow shipment from any source country port or airport.
To minimize discrepancies caused by listed weight differences between the commercial invoice and other shipping documents like the AWB, please add the following text to the Letter of Credit:
"Discrepancies of up to 10% on the listed weights of goods shipped between all required presentation documents are permitted."
All bank charges for the Letter of Credit should be charged to the applicant's account (that is, to your account).
The latest ship date and the negotiation date on the Letter of Credit should be valid for 30 days beyond the longest lead-time of the equipment ordered.
The Letter of Credit merchandise description should be as short and concise as possible, yet still be descriptive.
Allow 30 days from the shipment date as the latest date for presentation of the supporting documentation.
If a part's origin is required on the documentation, do not name a specific country in the Letter of Credit. This requirement can be met by simply stating in the Letter of Credit that "the invoice must state the origin of goods."
2. Submit the application to your local bank (referred to as the "issuing bank or opening bank"). Through the Letter of Credit, the issuing bank unconditionally agrees to make payment to GulenTech Hong Kong, provided the terms of the Letter of Credit are met. In essence, the credit worthiness of the issuing bank is substituted for you, the requesting company.
3. The issuing bank will issue a Letter of Credit in accordance with your application and transmit it to the advising bank. The Letter of Credit should be opened in favor of:
GulenTechnology Co., Limited
HSBC, Cheung Sha Wan SME Centre Rm 1010 - 1011, 10/F Plaza Tower 2
833 Cheung Sha Wan Road
Account Number: 178-760807-838
Swift Code: HSBCHKHHHKH
4. The "advising" or notifying bank receives the Letter of Credit, authorizes it and sends it to Gulen Technology Co., Limited along with a transmittal letter which usually includes a statement that the credit has been confirmed.
5. If the Letter of Credit is acceptable, a copy is sent to the freight forwarder/carrier.
6. After the product is shipped, Gulen Technology Co., Limited and the freight forwarder assemble all of the necessary documentation and submit the documentation to the authorizing bank.
7. The authorizing bank examines the documents and if found to be in order, forwards the documents to the issuing bank and initiates the payment process.
8. The issuing bank notifies you that it has the documents and, after payment terms are settled, releases the documents to you. With the documents in hand you can claim the goods from the freight forwarder.
Note: The Letter of Credit refers to documents representing the goods - not the goods themselves (typical documents include a commercial invoice, a transport document such as a bill of lading or airway bill and an insurance document, among others). Remember, banks are not in the business of examining goods on behalf of their customers.
GULEN TECHNOLOGY CO., LIMITED
Gulen Technology Co., Limited has the products, experience and capabilities to meet your NCR, Diebold , Wincor Nixdorf , GRG and Hyosung ATM and ATM spare parts requirements. GulenTech is an international solutions provider for the ATM industry by providing ATM machines , parts and services that fully meet the needs of today's demanding market. Our success is based on our understanding that we need to always try to improve.
Gulen Technology Co., Limited service to customer needs for:
• Wincor Nixdorf
GulenTech support their NCR, Diebold , Wincor Nixdorf , GRG and Hysoung international customers in 3 big warehouses in all over the World.
Gulen Technology Co., Limited
Unit 3907C, 39/F, Cable TV Towers, No.9 Hoi Shing Road, Tsuen Wan, Hong Kong
Phone: +852 8193 2300