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Trade Finance

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Globalization has led to a global dicline in international trade. Trade Finance services play important roles in assisting all traders in streamlining trade from one country to another, guaranteeing the safest form for mking international payments. Since operation of this service (Trade Finance) commenced in 2008 with our Oversea Correspondent Banks Network throughout the world, and with professional locally sourced and global network, we, Phnom Penh Commercial Bank, give our assurance that we are able to consult with and provide you with the best outcome for your business through these services. All services are detailed below:

Documentary Credit

  • Letter of Credit (Import)

    PPCBank issues a Letter of Credit on behalf of a buyer to the seller to ensure accurate payment when the seller has completed and complied all conditions of the contract in the letter of Credit.

  • Letter of Credit (Export)

    PPCBank advises, confirms, and negotiates on credit documents issued by the byer's bank. For this, the role of PPCBank is to check the terms and conditions referred to in the sale contract and to make claims for pyment.

Bank Guarantee

A. Local Bank Guarantee

  • Bid Guarantee :is issued to secure any claim by the party inviting the Tnder against the Tenderer in the event of withdrawal of the bid of before its expiry date or if the bid is modified unilaterally or if the Tenderer, unpon being awarded the contract, refuses to sign the contract or provide further guarantees on request.
  • Performance Guarantee :is issued to secure any claims by the byer against the seller arising from default of delivery or performance of the terms of the terms of the contract signed between the two parties (e.g. Construction, Goods Delivery, Assembly...).
  • Payment Guarantee : is issued to secure any claim by the seller against the buyer for payment of the contract price by the agreed date.
  • Advance Payment Guarantee : is issued to secure any claims by the buyer against the seller for reimbursement of the byer's advance payment on the contract price before delivery of the goods (or advance payment of the full price) in the event that the seller has failed to fulfill this or her contractual obligations in full.
  • Retention Money Guarantee : is issued to secure any claim by the buyer against the seller due to possible defects that arise following delivery.

B. Overseas Guarantee

  • Oversea Guarantee/ Standby Letter of Credit : (SBLC) is a guarantee of payment issued by PPCBank on behalf of a client that is used as payment guarantee if the client fail to fulfill a contractual commitment with a third party.

C. Shipping Guarantee

  • Shipping Guarantee : is issued by PPCBank to guarantee that the shipping company will release goods to customer without the presentation of the original bill of lading.

I.Suggested fee

Suggested Rate Remarks
1. Documentary Credit (Imports) Issuance of LC 0.1%p.m.min.2-mth.but not less than $50 +Cable charge $50
Amendment of LC: Increase in credit value 0.1% p.m. or part thereof, min. $25 +Cable charge $20
Extend validity 0.1% p.m. or part thereof, min. $25 +Cable charge $20
Change of terms not affecting validity or amount $25 flat +Cable charge $20
Cancellation of LC charges $30 flat +Cable charge $20
Import LC bill handling charge 0.1%, min. $30 +Cable charge $20
Acceptance Commission (Usance Bill) 0.1% p.m. or part thereof, min. $50 Indicative only
Reimbursement Fee $65 flat Normally for beneficiary's account
Discrepancy Fee $50 flat Normally for beneficiary's account
2. Documentary Credit (Exports) Pre-advise $10 flat
Advise Documentary Credit $30 flat $50 For Bank to Bank Adv
Advise Amendment $30 flat
Confirmation Subject to arrangement
Transfer LC : Full 100% transfer 0.1%, min. $50
Partial transfer 0.1%, min. $50 +DHL courier charge
Export LC bill handling charge 0.125%, min. $50  
Negotiation Fee 0.125%
Issuing Assignment of Proceeds $50 flat Issuing for Local Only

II.Documentary Collection

Suggested Rate Comments
1. Import Collection Inward collection handling fee 0.125%, min. $50

+Cable charge $15

+Outward rem. charge

Release documents free of payment $50 flat +Cable charge $20
Presentation Free
Re-present bill $25 flat Including cable $20
Protest $50 flat +Out of pocket expense
AVAL commission Collateral Security Need 0.15% p.m. min. $30
2. Export Collection Outward collection 0.125% min., $50 +DHL courier charge
Release Documents Free of Payment $50 flat +DHL courier charge

III.Guarantee

Suggested Rate Comments
A.Local Guarantee
1.Guarantee against Cash Deposit Issuance Fee 0.1% p.m. min. $10 max. $500 p.a. -
Amendment for Increase Amt & Validity 0.1% p.m. min. $10 max. $400 p.a. -
Amendment Not Increase Amt & Validity $10 flat -
Duplicated Issuance $10 flat -
Cancellation of Guarantee $20 flat Free of Charge for Bid Guarantee
Payment of Claim 0.125% min. $50 and max.$100 -
2.Guarantee against Collateral Deposit Issuance Fee 0.14% p.m. min. $50 -
Amendment for Increase Amt & Validity 0.14% p.m. min. $50 -
Amendment Not Increase Amt & Validity $10 flat -
Duplicated Issuance $10 flat -
Cancellation of Guarantee $20 flat Free of Charge for Bid Guarantee
Payment of Claim 0.125% min. $100 and max.$150 -
B.Overseas Guarantee/Standby LC
1.Issuance Overseas Guarantee /Standby LC Issuance Fee 0.15% p.m. min. $50 + Cable Charge $50
Amendment for Increase Amt & Validity 0.15% p.m. min. $50 + Cable Charge $20
Amendment Not Increase Amt & Validity $25 flat + Cable Charge $20
Cancellation of Guarantee/SBLC $30 flat + Cable Charge $20
Payment of Claim 0.125% min. $50 and max.$200 -
Remittance Charge 0.17% min. $10 + Cable Charge $15
Tracer $20 flat
2.Advice/Re-Issue Against Counter Guarantee Advice of Guarantee/SBLC (Bank to Bank) $50 flat -
Advice of Guarantee/SBLC (Bank to Customer) $30 flat -

Guarantee Issuance against Counter

Guarantee/SBLC of Counterparty Bank

0.15% p.m. min. $50 -
3.Shipping Guarantee SGLC (Relating to bill under our L/C) $30 flat -
SG (Relating to inward collection bill handled by us) 0.3% for 2-month Subsequently 0.3% p.m
SG (Documents not handled by us 0.3% p.m Not encouraged, risky