Documentary Credits

The scheme for payment by letter of credit is as follows:

1. An agreement is entered between the seller and the buyer.
2. The buyer applies to its bank for issue of a documentary credit.
3. The buyer's bank sends a documentary credit to the seller's bank (by telex or SWIFT).
4. The seller's bank advises the seller of the documentary credit.
5. The seller ships goods.
6. The seller submits documents as indicated in the documentary credit conditions to its bank.
7. The seller sends documents to the buyer's bank.
8. The buyer's bank pays the seller's bank.

Note:

• The buyer's bank has the right to check the received documents 7 business days (payment may take as much time).
  
• In case the documents do not comply with the conditions provided by the documentary credit the buyer's bank will execute payment only upon the buyer's consent.