A special loan offered by the Bank to the exporter who has received qualified letter of credit, to be used under items of procurement, production and shipment, so as to support the exporter to implement the contract, effect delivery as scheduled. Packing loan is a pre-loading short-term financing, which enables the exporter to purchase, prepare the material, produce and trade without difficulty even the self-owned capital is not sufficient.

• Expansion of trade opportunities. It can help exporters to run business smoothly and seize trade opportunities in the event of shortage of capital and failure to satisfy the requirements of advanced payment.
• Reduction of tied up capitals. It alleviates pressure of working capital because exporters’ own capital will not be occupied during lead time for purchase, production and so on.
• Satisfaction of the exporters’ requirements of short-term financing for goods preparation and shipment under L/C.
• Source of repayment comes from earnings from export under L/C with conditional credit guarantee by the issuing bank.
• It belongs to special loans with a clear trade background. The closed management is applicable to the product.

• Exporters are in shortage of working capital while overseas importers disagree with payment in advance but agree to open an L/C.

1. The exporter shall sign the financing agreement with Bank of China (Hong Kong) Limited Vientiane Branch and submit application for packing loan, trade contract, original copy of L/C and other pertinent materials.
2. The packing loans shall be transferred to the exporter's account after being approved by the branch.
3. The exporter shall submit documents under L/C to Bank of China (Hong Kong) Limited Vientiane Branch after completion of purchase, production and shipment with the packing loans.
4. Bank of China (Hong Kong) Limited Vientiane Branch shall send out the documents to the overseas bank (the issuing bank or designated bank) for reimbursement.
5. Foreign bank effects payment at maturity, Bank of China (Hong Kong) Limited Vientiane Branch recognizes it as repayment of packing loans.

1. Written application.
2. Overseas sales contract and domestic procurement contract.
3. Trade orientation.
4. Original copy of L/C.

1. The exporter is required to sign a formal Loan Agreement (Packing Loans) with Bank of China (Hong Kong) Limited Vientiane Branch.
2. Bank of China (Hong Kong) Limited Vientiane Branch shall be the advising bank and designated bank of L/C.
3. It is strongly recommended that the L/C does not contain "soft clause" which the exporter can’t fulfill.
4. The original copy of L/C shall be filed with the Bank of China (Hong Kong) Limited Vientiane Branch after applying for packing loans.
5. With normal conditions, the received remittance under L/C shall be the primary source of repayment of packing loans.
6. Upon shipment of cargoes and obtaining documents under L/C, the exporter shall deliver documents to Bank of China (Hong Kong) Limited Vientiane Branch in time.