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SOWMIA POLY , Credit Control and Collections , Mabani Steel LLC (Al Rajhi Group of Companies)
LC amount will be as per our agreement in PO. If LC issued as we agreed in PO, LC value will be the value of LC. Some times it can vary for +/- some % according to the LC, this is called tolerance. If tolerance is mentioned in the LC, value of LC can decrease or increase according to it.
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Milad Zia , Head of Trade Finance Department , Commercial Bank of Iraq S.A
In addition to what mentioned by Mr. Panakkal. Usually banks will calculate the issuing/amendment fee as a rate correlated with LC amount as agreed with their customer, some times it (fee rate) can vary for +/- of % according to the LC, the customer status/credit facilties and the payment type of the LC (at sight/usance).
