It is an import financing scheme to finance importers for goods, services and other trade related transactions. Exporters/sellers will get payment after their shipment and presentation of complied documents while importers can make payment on maturity.
FEATURES AND BENEFITS
| Roles of CB Bank | : | Financing Bank and Trade service product provider |
| Tenor | : | Based on the tenor specified in UPAS L/C |
Benefits to Importers
- Can negotiate for good price in the sale contract as the sellers receive payment immediately after the shipment
- Receive goods and enjoy longer payment tenor
- Strengthen relationships with sellers by allowing for payment at sight
How does it work? (UPAS Discounting)
- Importer applies UPAS LC to CB Bank.
- CB Bank issues UPAS LC and request confirmation to Overseas Bank.
- Overseas Bank advises the LC to Exporter (Overseas Bank’s Client).
- Exporter presents documents to the Overseas Bank for discounting.
- Overseas Bank discounts documents at Sight Basis and pays to Exporter.
- CB Bank pays to Overseas Bank at Maturity.
- Importer pays to CB Bank at Maturity.
How does it work? (LC Reimbursement)
- Importer (client of CB Bank) applies for UPAS LC.
- CB Bank issues UPAS LC and Reimbursement Authority to Overseas Bank.
- Overseas Bank advises the LC to Negotiating Bank.
- Negotiating Bank advises the LC to the exporter.
- Exporter makes shipment.
- Exporter sends document to the Negotiating Bank.
- Negotiating Bank sends documents to CB Bank and claims Reimbursement from the Overseas Bank.
- Overseas Bank honors Reimbursement Claim and makes payment to Negotiating Bank.
- CB Bank pays to Overseas Bank at maturity.
RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges
REQUIREMENTS
- UPAS Application Form
- Request Cover Letter with Company Letterhead
- Sales contract
- Commercial invoice
- Certificate of Exporter/Importer Registration
- Import/export license issued by Ministry of Commerce (both original and copy)