BG Holding / Turkey wants to import 1,000 TV sets from Sony Japan.
Cost of each TV is US$ 500.—
Sony wants a secure payment for this deal so they want banks to get involved into this transaction.
FOLLOWING ARE THE CONDITIONS FOR THIS TRANSACTION :
1. Both parties want to feel guaranteed from beginning to closing.
2. BG Holding ( BGH ) wants TV sets to be shipped from Tokyo directly to Istanbul Haydarpasa Customs. It must be one time shipment. Packed 10 TVs in one box.
3. BGH wants TV sets to arrive latest on 24th of May. TVs will be sent by ship. The voyage takes 10 days from shipment day.
4. Cost of Shipment and Insurance will be paid by SONY.
5. All bank charges will be paid by BGH
6. SONY works with 3 banks :
1. Non-wing Bank – Tokyo
2. TAI-MAI Bank – Tokyo
3. Bank of Tokyo-Tokyo
( First TWO banks are not known in Turkey )
BGH Bank is : Akbank – Kadikoy/Ä°stanbul
7. BGH has unlimited credit line with Akbank
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QUESTIONS :
1. Please Create :
a. The diagram of the LETTER of Credit Transaction ,
b. make list of necessary documents
c. Prepare the SWIFT Message of Letter of Credit Opening ( you can use internet sources )
