1. Revolving L/C
A revolving L/C is a L/C in which, after being used in whole or in part, its amount is restored to its original amount and can be used again until a specified number of times or a specified total amount is reached. It is usually used in cases where delivery is made evenly in batches. Under the conditions of a revolving L/C based on the amount, there are several specific ways to restore the amount to the original amount.
(1) Automatic revolving. After a certain amount is used up in each period, the L/C can be automatically restored to its original amount without waiting for notification from the issuing bank.
(2) Non-automatic revolving. After a certain amount is used up in each period, the L/C must wait for notification from the issuing bank before it can be restored to its original amount.
(3) Semi-automatic revolving. If the issuing bank does not notify the creditor to stop revolving within a few days after a certain amount is used up in each period, the L/C can be automatically restored to its original amount from the ×th day.
2. Reciprocal L/C
Reciprocal L/C refers to a L/C opened by two L/C applicants with each other as the beneficiary. The amounts of the two L/Cs are equal or roughly equal. They can be opened simultaneously or successively. They are mostly used in barter trade, processing with supplied materials and compensation trade.