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Letter of Credit for Solar Imports from China: 2026 Buyer's Playbook

Complete guide to using Letters of Credit (LC) when importing Chinese solar modules — LC at sight vs usance, cost, top China-friendly banks and typical clauses.

Chinese.Solar Editorial2026-05-1214 min read
CHINA

For orders >$300k, most Chinese Tier-1 suppliers prefer LC at sight from a China-friendly correspondent bank. LC removes prepayment risk but costs 0.8-1.5% of order value and adds 5-10 days to the timeline.

LC cost (buyer)

0.8–1.5%

order value

LC cost (seller)

0.35%

confirmed

Standard tenor

at sight

or 30/60 usance

Bank shortlist

China-friendly banks with fastest LC processing: HSBC, Standard Chartered, DBS, ICBC (any branch), Bank of China (any branch), Emirates NBD. Avoid US regional banks — 2-3 week delays common.

Frequently asked questions

QLC vs TT 30/70?

TT is cheaper (~$40 wire fees) but forfeits recourse if goods fail QC. LC costs ~1% but gives you QC-linked release.

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