Definitions

Here are the definitions of terms and keywords you may face in this guideline :

2-1- Bank: Bank signifies BIM (Bank of Industries and Mines) which has legal entity and it is financially and administratively independent. It acts as a governmental organization under supervision of ministry of industries and mines and included in supervisions of central bank of Islamic republic of Iran.

2-2- Buyer/applicant: it is defined as any real or legal entity that refers to bank and by knowing all the terms rules and conditions of bank and local L/C opening applies for local L/C opening.

2-3- Seller/beneficiary: it means any real or legal entity that is one side of buyer/applicant contract and local L/C is opened in his interest.

2-4- Executor bank of seller/beneficiary: it defined as an interface bank which is introduced by seller/beneficiary as agent for work's agent and local L/C is served to seller/beneficiary through this bank. Bank can appoint executor in credit by his own decision and regardless to seller/beneficiary's idea .

2-5- Incoterms: Incoterms are the last revision of International commerce terms collection for L/C opening. It is basis of action in order to illustrate duties and responsibilities borders of both side of contract and for unification of legal criteria between banks and costumers.

2-6- UCP (Uniform Customs and Practice): It is the final unified rules of L/C which its Persian translated text by "ministry of industries and mines of Iran-chamber of commerce-committee of banking" is known as basis of executive rules and conditions.

2-7- Proforma Invoice: it is a kind of document issued by seller/beneficiary with the name of buyer/applicant. In this document type of goods or services, its technical specifications, amount, goods delivery or service supervision performance condition, total and detail costs, payment conditions, technical supervision statement, delivering time and other agreed items between seller and buyer are demonstrably specified.

2-8- Goods or services: it means a collection of articles, goods, job description or services which their provision is undertaken and declared by the seller according to Proforma Invoice.

2-9- Dealing deeds: they are documents which must be submitted to executor bank by seller in time of goods delivering or termination of services (before expiration date with respect to appointed date in credit). After dealing deeds were determined and controlled and corresponded with agreed conditions between seller and buyer in related L/C and fulfillment of seller responsibilities was approved, executor bank is authorized for paying credit payment to seller.

2-10- General inspection company: it means an inspecting company which is chosen by buyer among general inspection companies, which have confirmed and declared by central bank of Islamic republic of Iran. This company is buyer’s representative for inspecting goods and service before shipment (lading time) and at delivering time. General inspection certificate is one of dealing deeds items. Applicant can receive authorized general inspection companies list by referring to bank.

2-11- Technical inspection certificate: it’s a kind of document by which technical qualification is illustrated and its careful accordance with technical traits of goods or services and contract and exchanged technical documents between buyer and seller is verified.

2-12- Bill of lading: is a document in which goods description, seller’s name, buyer’s name, destination, weight and volume, credit No. and other related information are mentioned.

2-13- Expense statement of services performance: it means a document which is prepared, issued and confirmed by buyer and a company appointed by buyer. This document explains that seller has fulfilled all his duties related to agreed services offering and has paid related legal liabilities.

2-14- Bill of inventory (Invoice): It is a kind of document which is prepared by seller after fabrication, goods provision or services completion. The Information in this document should be identical as proforma invoice document. It is obvious that in case of every discrepancy, buyer should inform his acceptance related to items of discrepancies to the bank.

2-15- Delivery or reception certificate: is a document represents goods delivering from seller to buyer in stowage buyer or seller.

2-16- branch: branchs are divisions which are created or will create in order to offering banking service to costumers in province centers or cities. The highest status in each branch is president of each branch. These branchs work under surveillance of manager of branchs of bank and based on internal rules and conditions of bank.

2-17- Manager of branchs: it is a department in bank which is in charge of controlling, coordination, ground rules and executive and operative disciplines serving of all branchs of bank.