Import Letters of Credit Process The importer arranges for the issuing bank to open a Letter of Credit in favor of the exporter. The issuing bank transmits the Letter of Credit to the nominated bank, which forwards it to the exporter. The exporter forwards the goods and documents to a freight forwarder.
FROM :( NAME & ADDRESS OF OPENING BANK) TO :( NAME & ADDRESS OF NEGOTIATING BANK) 40A TYPE OF L/C: IRREVOCABLE. 20 L/C Number.
How to Write a Letter of Credit Prepare the letter of credit documents, including the credit application, bank instructions, and the credit agreement. Make sure all documents are signed, dated, and include all necessary information. Submit documents to the issuing bank. Confirm that the bank has accepted the documents.