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Importers Manual, Documentary Credits (Letters of Credit)
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Importers Manual USA
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DOCUMENTARY CREDITS (LETTERS OF CREDIT)
GENERAL SECTION
Growing economic interdependence and new transport possibilities have
now
made it feasible to do business with even the remotest corners of
our planet.
For many transactions, both prepayment and supply of the goods on
a credit
basis are out of the question. Besides, many countries have sunk deeply
into debt in recent years. These trends have increased the desire
for security
on the part of both sellers and buyers.
If the purchase contract or similar agreement provides for payment
against
a documentary credit, it is up to the buyer to instruct his bank to
open
a documentary credit in favour of the seller.
The ...