TradeL/C
Letter of Credit
Also known as: L/C, Documentary credit, LC
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
Also known as: L/C, Documentary credit, LC
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
A letter of credit is a payment instrument issued by a bank (issuing bank) at the importer's request, by which the bank commits to pay the exporter when conforming documents are presented. It is the most secure payment method in international trade.
International Payment Terms
Agreed conditions between buyer and seller regarding when, how, and in which currency payment will be made for a foreign trade transaction.
DocumentsBill of Lading (B/L)
An ocean transport document issued by the carrier that serves as a contract of carriage, receipt of goods, and document of title to the cargo.
DocumentsCommercial Invoice
Document issued by the seller/exporter describing the goods sold, their price, terms of sale, and details of the parties involved.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.