L/C Process

1. Letter Of Credit
SamiuR Rahman
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2. MEANING OF LETTER OF CREDIT
 It is a written undertaking by the importers bank
known as the issuing bank on behalf of its
customer, the importer (applicant), promising to
effect payment in favour of the exporter
(beneficiary) up to a stated sum of money, within
a prescribed time limit and against stipulated
document
 Letter of Credit also known as Documentary
Credit
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3. TYPES OF LETTER OF CREDIT
 Irrevocable and revocable letters of credit
 Confirmed and unconfirmed letters of credit
 Transferable letters of credit
 Standby letters of credit
 Revolving letters of credit
 Back-to-back letters of credit
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5. PARTIES TO LETTER OF CREDIT
 Applicant (Opener)
 Issuing Bank (Opening Bank)
 Beneficiary
 Advising Bank
 Confirming Bank
 Negotiating Bank
 Reimbursing Bank
 Second Beneficiary
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6. Required Documents
 Bills of exchange
 Invoices
 Government documents such as licenses,
certificates of origin, inspection certificates,
embassy legalizations, and phytosanitary
certificates
 Shipping and transport documents such as bills of
lading and airway bills
 Insurance policies or certificates, except cover
notes
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7. “THE END”
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