Subject to compliance with its terms and conditions, an export letter of credit is a guarantee that funds will be paid to the seller. It is of considerable importance for the exporter to receive a letter of credit through a bank that is well known, since there is always the risk of a letter of credit being counterfeited or opened by a non-existent bank. This can happen if a letter of credit is sent directly by mail (bypassing the bank) so that the beneficiary has no opportunity to verify its genuineness. With its large overseas network of correspondent banks, UniCredit Bank is able to provide clients with advice and make recommendations on ways to conduct a transaction and about specific overseas banks. The bank advises, clears and, if the exporter requires, accepts incoming letters of credit issued by other banks in favour of Russian exporters.
Acting as a nominated bank, UniCredit Bank is authorised to effect payment in favour of exporter (subject to the receipt of funds from the issuing bank) against presentation of stipulated documents in compliance with the terms and conditions of the credit.
Confirmation of a letter of credit constitutes an obligation on the part of UniCredit Bank (in addition to the obligation of the issuing bank) to make payment against documents that fully conform to the appropriate terms and conditions of the letter of credit.
UniCredit Bank also transfers letter of credit. Exporters can receive funds against shipping documents prior to payment under the letter of credit. In addition, UniCredit Bank provides its clients with all the necessary advice on the issue of shipping documents.
Tariff on Export Letters of Credit
| Types of Operation | Commission Rates* |
| 1. Pre-advising of D/C | USD 50 |
| 2. Advising of D/C or amount increasing or extension of an unconfirmed D/C 1 | 0.1%, min. USD 50, max. USD 1000 |
| 3. Confirmation of D/C or increase of D/C or extension of D/C confirmed by the Bank 2 | Subject to arrangement, min.0.15%, min. USD 50 per quarter (90 days) or part thereof |
| 4. Extension of D/C confirmed by the Bank within a quarter (90 days), for which commission has been already charged in accordance with item 3. | USD 50 |
| 5. Other amendments/cancellation of D/C. | USD 50 |
| 6. Payment under D/C 3 | 0.15%, min. USD 50,max. USD 3000 |
| 7. Payment without documents being presented to the Bank. | USD 60 |
| 8. Handling documents in case UniCredit Bank is not a nominated Bank. | 0.1%, min. USD 50. max. USD 500 |
| 9. Verification of documents at a beneficiary’s request in case UniCredit Bank is not a nominated Bank 4. | USD 40 per each document, max. USD 200 per set |
| 10. Discrepancy fee 5. | USD 50 per set |
| 11. Transfer of D/C | 0.15%, min.USD 50, max. USD 1000 |
| 12. Assignment of proceeds under D/C | 0.1%, min.USD 50, max.USD 500 |
| 13. Execution of applicant’s order in cases when UniCredit Bank is not an issuing bank | 0.1%, min.USD 50, max. USD 1000 |
| 14. Additional services (drawing up or essential editing a draft of the payment terms of a contract or a draft of D/C presented by the customer, D/C translation into Russian, drawing up an expert opinion on D/C at customer’s request, drawing up of shipping documents samples) 6. | Subject to arrangement, min. USD 100, min.USD 500 |
* Commission is charged
when bank commission and expenses are to be born by the drawee by
his consent.
Commission is payable in the currency of the account debited with
the amount of the transfer.
1 In case of D/C amount
increase, commission is charged on the amount of increase.
2 Commission is charged for
the whole period from the date of D/C confirmation until expiry
date for presentation of documents/date of the last payment. In
case of increase of D/C commission is charged on the amount of
increase.
3 Commission is charged
if UniCredit Bank is a nominated Bank.
4 Commission is always
charged to the beneficiary.
5 Commission is always
charged to the beneficiary presenting documents with discrepancies
in addition to the commission under item 6. Commission shall be
charged to the beneficiary even if in accordance with D/C terms the
commission under item 6. is not charged to his account.
6 Commission (VAT included)
under this item charged in Rubles in accordance with item 6 of
Section ÕV.