A Letter of Credit (L/C) is a commitment by the buyer's bank to pay the seller, provided the seller presents documents that strictly comply with the L/C terms.
The process: buyer and seller agree to use an L/C, the buyer's bank issues it, the seller ships and presents documents to the advising or negotiating bank, and the issuing bank pays once documents are found compliant.
Discrepancies between documents and L/C terms are the most common cause of delays and refusals, so work closely with your forwarder and bank when preparing the invoice, packing list and bill of lading.
Try: Document Center →This article is general information, not legal or tax advice. Rules and rates change — confirm with a licensed customs broker before filing.