1. Exporter also prepares documents called for in Letter of Credit. Those documents typically include: – Commercial Invoice, – Packing List, – Insurance Policy, – Bill of Lading, – Phytosanitary Certificate, and – Certificate of Origin. 2. With the documents called for in Letter of Credit, exporter requests exporter‟s bank to advise importer‟s bank to proceed the payment for goods. 3. Exporter‟s bank reviews submitted documents and determines if they are compliant with the terms and conditions as listed in Letter of Credit. If they do not meet the terms and conditions in Letter of Credit, exporter‟s bank informs exporter about the discrepancies. In this case, exporter needs to make necessary corrections. 4. If the submitted documents meet the terms and conditions as listed in Letter of Credit, exporter‟s bank forward them to importer‟s bank. 5. Importer‟s bank reviews submitted documents and determines if they are compliant with the terms and conditions of Letter of Credit. If they do not meet the terms and conditions in Letter of Credit, importer‟s bank informs importer about the discrepancies. 6. Importer determines if discrepancies can be waived. 7. If importer does not waive the discrepancies, importer‟s bank declines the request to make payment for goods. 8. Exporter‟s bank notifies exporter about the decline for the payment for goods so that exporter makes necessary corrections. 9. If importer‟s bank finds the submitted documents compliant with the terms and conditions listed in Letter of Credit from the very beginning, importer‟s bank transfer the payment for goods to exporter‟s bank. 10. Exporter‟s bank transfers the payment for goods to exporter. 11. Exporter receives the payment for goods. 12. Importer‟s bank debits the payment for goods from importer‟s account. 13. Importer‟s bank releases documents collected from exporter. 14. Importer collected documents required for import.
