Letter of Credit (L/C) confirmation provides a guarantee of payment to the exporter provided that all terms and conditions of an L/C (issued by another bank) are complied with. It takes a form of “open confirmation” or “silent confirmation,” depending on whether or not the confirmation is disclosed to all relative parties.
Structure of Typical L/C Confirmation Arrangements
Benefits of L/C Confirmation Arrangement
Country risk and payment risk of the L/C issuing bank can be covered by confirmation subject to complying documents presented to Mizuho.
- The use of the above products or services is contingent upon the credit assessment in accordance with Mizuho Bank’s prescribed procedures. As part of this assessment, you may be required to submit certain documents.
- Fees may be charged for using these products or services.
- Please consult an attorney, accountant, or tax accountant regarding any legal matters, accounting issues, or taxation concerns.