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How to safely import Italian Food Parmigiano Reggiano with Bank Documentary Credit and Letter of Credit

The Made in Italy market and the importance of local products are becoming increasingly influential in the development of the Italian economy but also of the international economy.
This means that Made in Italy now plays a crucial role in the world economy and in the proliferation of new job opportunities for the import and export of everything that is produced in Italy, the so-called Bel Paese, known to the abroad to be the home of excellent craftsmanship. The best way to allow foreign companies to import, in a secure way, the Italian excellences of the large-scale retail trade is to provide them with banking tools called Documentary Credits. Both the buyer (importer) and the beneficiary (exporter) of the bank credit are protected with them. Banks intervene to protect the international exchange of goods and products.

The most used Documentary Credits are:

  • Letter of credit
  • Transferable Letter of Credit
  • Subsidiary Credit or Counter Credit
  • The Revolving Credit
  • The Advance Credit with a red or green clause
  • The Sale of the Revenue
  • Standby Letter of Credit

These banking instruments allow bilateral protection between the parties in the sales contract and make exports safe against international scams that make the international exchange of goods and products between companies insidious

The Transferable Letter of Credit is widely used in international exchanges between companies. This banking tool allows the triangulation between three actors: Buyer, Intermediary and Seller (Manufacturer). It allows to maintain a privacy between buyer and seller in such a way that the Buyer does not disclose, in the sales contract, sensitive data of his business to the Seller (Manufacturer). The Seller (Manufacturer), more often than not, is a multinational with financial capabilities such as to exploit the data acquired from the sale and from a customer becomes a competitor of the Buyer. Another banking instrument that allows the protection of privacy between the Buyer and the Seller is the Transfer of Revenue.

Are you a company and want to import Italian food and wine safely? Our company works with Letters of Credit so as to protect the Buyer. Once the Letter of Credit has been opened, our company will honor the commitment made as soon as possible. Furthermore, our company always protects the sensitive data of the Importer. The goods are always shipped with insured transport.

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