I. Domestic Letter of Credit A document issued by ICBC at the request of buyer which provides a conditional payment undertaking. ICBC will pay to the seller upon receipt of shipping documents and terms and conditions are met.
II. Domestic Letter of Credit Negotiation A short-term loan from ICBC to seller after shipment of goods, against the account receivables under the deferred payment credit received.
III. Packing Loan under Domestic L/C A packing loan under domestic L/C is an ICBC loan for the L/C beneficiary (seller) to cover the cost of goods, production and shipment.
IV. Tax Rebate Receivables Financing A short-term loan for companies to cover the temporary funding gap due to tax rebate from export/domestic trade not yet credited into account. ICBC takes the tax rebate receivables as the first source of loan repayment.
V. Import Documentary Credit At the request of the L/C applicant, ICBC and L/C applicant reach agreement that the ownership of the L/C documents and goods is transferred to ICBC. ICBC releases the documents under trust and makes payment to outside party first.
VI. Forfaiting In trade finance, forfaiting, also known as purchase of negotiable instruments, where the forfaiter buys the accepted receivable or bill receivable under usance L/C, without recourse.
Note: Information herein is for reference only. Refer to the announcements and regulations of local branches for further details. ICBC reserves the final right of interpretation.