These slides about the letter of credit of Standard Chartered Bank

1. Presented by:
Muhammad Awais Zameer- 41012
Syed Abdul Basit- 41005
Shafqat Rasool- 41015
Awais Khan- 41050
Nawaz Khan- 41053
Presented to:
Dr. Muhammad Rizwan Kamran
GC. University Faisalabad
January 14, 2020
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2. History
Standard Chartered Bank was found in 1969 by
the merging of two Banks.
 The Standard Bank. The Chartered
Bank.
 Both companies were keen to capitalise on the
huge expansion of trade.
 Earn the handsome profits to be made from
financing the movement of goods between
Europe, Asia and Africa.
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3. The Standard Bank
 Founded in the Cape Province of South Africa
in 1862 by Sir.John Paterson.
 By 1953, Expanded in Southern, Central and
Eastern Africa and, had 600 offices.
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4. The Chartered Bank
 Founded by James Wilson in 1853.
 Opened its first branches in Mumbai, Kolkata and
Shanghai in 1858 & in Hong Kong and Singapore in
1859.
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5. Introduction
 Standard Chartered Bank, a British bank
headquartered in London with operations in
more than seventy countries.
 Operates a network of over 1600 branches and
employs of 73,000 people.
 90% of its profits come from Asia, Africa, and
the Middle East.
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6. Global Network
 Having a network of over 1600 branches and outlets
(162 in Pakistan).
 5,600 ATMs in more than 70 countries and territories
across the global.
 Now one of the world's most international banks.
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7.  Standard Chartered is the largest international Bank in Pakistan. The Bank has been
operating in Pakistan for over 140 years when it first established its operations in
1863 in Karachi.
 After the acquisition of Union Bank in September 2006, the new entity Standard
Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 30 December 2006
as a subsidiary of Standard Chartered PLC.
 The bank has a network of over 162 branches in Pakistan. Standard Chartered
employs a workforce of over 9,000 employees in its Pakistan operations.
Standard Chartered Bank (Pakistan)
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8. Trade Services: Import
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Letter of Credit:
A Standard Chartered letter of credit gives its customer the assurance from a world
class bank when dealing with unfamiliar suppliers. Customer can be confident that
payment will not be made until the documents are received and verified to be in
order.
Import Financing:
Standard Chartered will provide financing solutions to pay for the import
transactions under letter of credit or import LC contract.

9. Trade Services: Import
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Shipping Guarantee:
A shipping guarantee is issued by Standard Chartered Bank on the customer
instruction when the vessel carrying the goods arrives earlier than the original bill of
lading, which requires the customer to clear the goods.
Import Bills for Collection:
By informing the supplier to send their shipping documents to Standard Chartered,
customer will enjoy quick advice upon our receipt of documents and efficient
payment according to your instructions.
A documentary collection is a process by which an exporter's bank collects funds
from the importer's bank in exchange for documents detailing shipped merchandise

10. Trade Services: Import
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Performance Bonds and other Guarantees:
Standard Chartered offers tailored solutions to meet customer’s entire performance
bond and guarantee needs.
A performance bond, also known as a contract bond, is a surety bond issued by an a
bank or insurance company to guarantee satisfactory completion of a project by a
contractor.

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Trade Services: Export
 Export Letter of Credit:
Benefit from quick advising of export letter of credit from a wide international
network through Standard Chartered.
A document whereby your buyer instructs their bank to pay you, assuming that the
agreed conditions specified in the original document, are met.
 Export Letter of Credit Safekeeping:
Rather than be inconvenienced by having to come to the bank to collect your export
letter of credit, Standard Chartered will safe keep your original and send you a
working copy to facilitate the preparation of documents.

12. Trade Services: Export
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 Export Letter of Credit Confirmation:
Exporters may deal not only with unknown foreign buyers, but also with their banks
which are less well known institutions and whose letter of credit (LC) may not be
sufficient comfort. By requesting Standard Chartered to confirm your export LCs, you
obtain our guarantee of payment for document presented in compliance with the
credit.
Pre Shipment Export Financing:
Standard Chartered offers pre-shipment finance against letters of credit from or
purchase orders in a number of currencies to allow you to trade with confidence. If
you need to fulfil a sales contract but need funds to purchase raw materials or to
process goods for export.

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Trade Services: Export
 Export Invoice Financing:
The Export Commercial Invoice Financing is a type of short-term trade finance where
customers sell the export receivables under the export commercial invoice to Bank;
it is done for a certain percentage of the invoice value.
The maximum amount of credit for imports is 100% and for exports, the maximum
should not normally exceed 85% of the invoice value.
By presenting these documents the Bank can provide short-term finance to the
importer or exporter. The tenor of each advance is normally 90 days but the
maximum tenor should not normally exceed 180 days.

14. POINTS IN THE LETTER OF CREDIT
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To be advised through any affiliate or correspondent of standard Chartered Bank
(Pakistan) Limited. If we import to Pakistan.
 Amount tolerance:
 Plus 5% if for example we import 100 pairs and they send 105 so 5 are extra which
we bears.
 Minus 5% if for example we import 100 pairs and they send 100 pairs so 5 are
defaulted in the shipment or any fault in size, design etc.

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POINTS IN THE LETTER OF CREDIT
 Document required:
These are documents required in different imports shipments.
 Multimodal Bills of Lading: Many shipment in different countries. We need
clearance certificates of these countries from where it passes.
 Marine Bills of Lading: Deliveries through vessel.
 Air Waybills (AWB): Consignment though aircrafts.
 Charter party bills of lading: Full shipment like oil, LNG Gas etc.
 Cargo Receipts (CR): When we import goods by road between countries. Like India
and Pakistan, china and Pakistan etc.

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 International rules and regulations to which the letter of credit transaction must be
subjected:
 UCP (The uniform customs and practices for documentary credit): is a set of rules
on the issuance and use of L/c.
 URR 725 (The uniform rule for bank to bank reimbursement); it is applied to the
L/C document.
 Incoterms 2010 : is a set of rules which define the responsibility of seller and
buyer for the delivery of goods under sale contract.
 CIF Terms (Cost, Insurance and freight terms): is an expense paid by seller to
cover the cost and damage to buyer’s order in transmission if it is mentioned in
the sales contract.
POINTS IN THE LETTER OF CREDIT

17. Trade Service Supplement Issuance of
LC / Back-to-Back LC
 Unless otherwise specified in the Application Form:
(a) The LC must be issued subject to UCP which will be incorporated in the
LC.
(b) The LC may be subject to URR, and if it is, URR will be incorporated in the
LC.
 We will honor (for Your account) all presentations made in compliance with the
terms of the LC.
 if We mistakenly inform You that the presentation was noncompliant. We are not
liable to You for any Losses You suffer or incur as a result of such mistake.
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18.  We may reject any non-complying presentation under the LC even if:
(a) We have Notified You that the presentation was compliant; or
(b) You Instruct Us to waive all discrepancies We have advised You.
 We may select the advising bank without consulting You even if You stipulate an
advising bank in the Application Form.
 You must ensure that any goods under the LC are permitted to be imported in the
relevant country. If We need to inspect the import license, You must provide the
original of such import license to Us at the time of Your application.
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Trade Service Supplement Issuance of
LC / Back-to-Back LC

19. Thanks For Your
Attention & Listening.
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