Import Letter of Credit Issuance Services
Qualified Applicants:
Companies handling import businesses, or domestic corporations, organizations and individuals that are not regular importers and exporters, but approved by the governing authority to handle import and export of specific items.
Credit Application:
According to the Bank of Taiwan Regulation for the Administration of Import Negotiations Credit, the applicant should fill in the Application for Import Negotiations Credit, and submit credit investigation materials for approval. Once approved, the applicant will be issued import negotiations credit. After signing the contract, the importer can apply for letter of credit within the approved credit line.
Documents Required:
Import Permit (Exempt if import permit is not required.)
The Application for Issuance of Letter of Credit, transaction documents and other related documents.
Guarantor:
The applicant should provide at least two individual guarantors with good credit.
Interest Rate:
The interest rate is calculated based on the interest rates of the foreign currencies forward letters of credit on the negotiation date of the foreign bank or the payment date of the Bank of Taiwan.
Methods of Reimbursement:
l Pay within 15 days after Bank of Taiwan receives the overseas negotiation documents and notifies the importer.
l Pay if the importer applies for the shipping guarantee or duplicate bill of lading endorsement when the shipment documents have not arrived,.
Service Fee:
The service fee is charged according to the Foreign Exchange Service Charge Standard of Bank of Taiwan. A period of three months or below is regarded as one term. The service fee for the first term is 0.25% of the amount of the L/C. The service fee after the second term is 0.125% of the amount of the L/C. The minimum service fee is NT$400.00. If the confirmation of the overseas bank is required, the service fee is charged based on the actual amount charged by the overseas bank. Postal and cable service fees are charged additionally.
Place of Application: sales department of the head office, and branches offering foreign exchange services.
Import Collections
Qualified Applicants:
Companies handling import businesses, or domestic corporations, organizations and individuals that are not regular importers and exporters, but approved by the governing authority to handle import and export of specific items.
Services:
- D/P: After the Bank receives the shipping documents, the importer comes to the Bank to complete the import procedures and get the shipping documents for customs declaration and goods delivery.
- D/A: After the Bank receives the shipping documents, the importer comes to the Bank to handle the draft acceptance procedure and get the shipping documents for customs declaration and goods delivery. The import charges will be paid on the due date of the draft (or paid from the foreign exchange deposits with the bank).
Service Fee:
According to the Foreign Exchange Service Charge Standard of Bank of Taiwan, the service fee is calculated based on the a certain percentage of the amount of collections: D/A - 0.2%; D/P-0.15%. The minimum service fee is NT$400.00 each. Postal and cable service fees are charged additionally.
Place of Application: sales department of the head office, and branches offering foreign exchange services.
Pre-purchase of Forward Foreign Exchange Services
Qualified Applicants:
Customers (including corporations and individuals) of Bank of Taiwan with no unfavorable records of deposits, loans or foreign exchange transaction during the past year, and have actual demand for spending.
Documents Required:
- Application and Agreement on Pre-purchase of Forward Foreign Exchange
- Stamped documents sufficient to verify the actual import transactions, or documents of foreign exchange payment, or documents approved by the governing authority.
Service Fee:
· Guarantee fee: 3% of the contract amount;
· Service fee: 1‰ of the contract amount, at least NT$400.00.
Place of Application: sales department of the head office, and branches offering foreign exchange services.