1. Import Collection

Product description: Import Collection is a form of settlement in which the importer and the exporter both agree to authorize IVB (as Collecting Bank) to collect funds from the importer (IVB’s customer) in exchange for the original shipping documents.

Product benefits:

• Reduce payment risk for the exporter because IVB will hold the documents and only hand over to the importer for goods pick up provided that the importer makes payment/acceptance to pay at maturity.
• Simple procedure with low cost: The customer who pays or accepts to pay will get the documents to receive goods.
• Safe and secured
• Fast and accurate service with competitive fees
• Import financing support from IVB

Forms of Collection:

• Document against Payment (D/P): The Collecting Bank (IVB) will make payment at sight to the exporter when the importer pays in exchange of the original documents for receiving goods.
• Document against Acceptance (D/A): The Collecting Bank (IVB) will advise the acceptance of time draft of the importer to the exporter when the importer accepts to pay on maturity date in exchange of the original documents for receiving goods

2. Import Letter of Credit

Product description: The import Letter of Credit (L/C) issued by IVB is an irrevocable undertaking of payment to the exporter (beneficiary) provided that the beneficiary presents documents complying with terms and conditions of the L/C, the Uniforms Customs and Practice for Documentary Credits (UCP) and the International Standard Banking Practice for the Examination of Documents Under Documentary Credits (ISBP).

Product benefits:

• Secure the payment and reduce payment risks for both importer and exporter as they receive the undertaking of payment from Issuing Bank
• The importer can control the shipment timely by using the L/C payment method and only has to pay upon receipt of the complying documents
• Free consultancy and professional support to reduce risks in the international trading
• With IVB’s prestige and its worldwide correspondent banking relationship, the foreign banks will easily accept to negotiate the documents under L/C issued by IVB in favor of the exporter.
• Safe and secured
• Fast and accurate service with competitive fees
• Import financing support from IVB

L/C operations:

• Issuance/Amendment of L/C: L/C provides both the importer and exporter a better mechanism to manage their cash flow. The importer may request a L/C from IVB made available by sight or usance payment at a definite time in the future.
• Issuance of Shipping Guarantee/Endorsement of Bill of Lading/Issuance of Goods Delivery Authorization in favor of the customers for receiving goods when the original documents is not yet delivered to the Issuing Bank, avoiding the cost of demurrage and storage, while simultaneously responding to the progress of the circulation of goods.
• Checking documents under import L/C: IVB will check and advise the status of the original documents to customer before making payment/acceptance
• Payment/Acceptance: Customer will be supported by import financing for payment

Other products under L/C:

• UPAS L/C (Usance L/C payable at sight basis): The usance L/C with terms by which the beneficiary may be able to be paid at sight. It allows the exporter to be paid at sight basis upon presentation of documents to IVB while the importer just has to pay at maturity.
• Domestic L/C (issued in Vietnam Dong): The L/C issued by IVB to make payment to the domestic beneficiary in Vietnam Dong.