Letter of Credit - 1 Forex

16/12/2009 23:38

 

 

Parties:

Importer or Buyers or the Applicant               – applies for LC to issuing bank

Issuing Bank                – opens LC, sends for advising within 7 days to Advising/ Negotiating Bank

Advising Bank/ Negotiating Bank                    – advises LC to beneficiary

Beneficiary                           – ships goods to importer & then negotiate documents to receive payment from Advising/Negotiating Bank

Advising / Negotiating Bank                           – sends documents to Issuing Bank & received payment.

Issuing Bank                     – release documents to importer against payment or Acceptance by applicant.

Advising Bank, Confirming Bank & Negotiating Bank may be same.