Document Legalization – Letter of Credit – Insurance | Stinson Logistics, LLC
Document Legalization, Letters of Credit and Insurance provided by Texas Global Services for their clients peace of mind and their transportation success. Your freight is our number one priority.
Legalization – international law, legalization is the process of authenticating or certifying a legal document so a foreign country’s legal system will recognize it as with full legal effect. Authentication by legalization is widely used in international commerce.
Letter of Credit – A letter of credit, also known as a documentary credit, bankers commercial credit, is a payment mechanism used in international trade to perform the same economic function as a guarantee. They are one of the most versatile and secure instruments available to international traders. A letter of credit is a commitment by a bank on behalf of the importer (foreign buyer) that payment will be made to the beneficiary (exporter), provided the terms and conditions stated in the letter of credit have been met, as evidenced by the presentation of specified documents. A letter of credit issued by a foreign bank is sometimes confirmed by a U.S. bank. This confirmation means that the U.S. bank (the confirming bank) has added its promise to that of the foreign bank (the issuing bank) to pay the exporter. If a letter of credit is not confirmed, it is “advised” through a U.S. bank, and thus the document is called an advised letter of credit. U.S. exporters may wish to have letters of credit issued by foreign banks confirmed through a U.S. bank if they are unfamiliar with the foreign bank or are concerned about the political or economic risk associated with the country in which the bank is located. A U.S. Commercial Service office or international banker can assist exporters in evaluating the risks to determine what terms might be appropriate for a specific export transaction.
A letter of credit may be irrevocable, which means that it cannot be changed unless both parties agree. Alternatively, it can be revocable, in which case either party may unilaterally make changes. A revocable letter of credit is inadvisable because it carries many risks for the exporter. To expedite the receipt of funds, you can use wire transfers. You should consult with your international banker about bank charges for such services. -export.gov
Shipping Insurance – provides coverage against physical damage or loss of goods during shipping, whether by land, sea or air. Because of the many dangers inherent in shipping, most individuals and businesses choose to insure their goods while they are in transit. However, many different types of cargo insurance are available, and it is important that you know exactly what you want before taking the insurance, or you may not be covered for every eventuality.
Document Legalization - Letter of Credit - Insurance | Stinson Logistics, LLC
Document Legalization – Letter of Credit – Insurance |
Stinson Logistics, LLC – Texas Global Services
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Spring, TX 77379