1. The exporter’s bank initiates the process to receive the L/C sent by the importer’s bank. 2. The exporter collects the L/C 3. The exporter arranges the documents to be submitted according to the L/C. These documents include commercial invoice, packing list, certificate of origin, consignment note, and bill of exchange. 4. The exporter forwards the above documents to his bank to facilitate the process of payment. 5. The exporter’s bank verifies the documents 6. If not satisfied the exporter’s bank sends the documents back to the exporter for corrections. If satisfied with the documents, the exporter’s bank takes decision to send those to the importer’s bank. 7. The exporter sends the documents to the importer’s bank. 8. If importer’s bank verifies the documents sent by the exporter’s bank. 9. The importer’s bank decides whether or not to proceed with payment based on the accuracy of the documents. If satisfied then activity 10. If the importer’s bank is not satisfied with the documents sent by the exporter’s bank, he sends those to the importer. The importer verifies the documents. If the importer is convinced with the problems in the documents, then the importer declines to make the payments and informs his bank regarding his decision. 11. The bank of the importer refuses to make payment and informs the decision to the exporter’s bank. 12. The exporter’s bank notifies the exporter regarding the decline of payment request by the importer’s bank. 13. If the importer’s bank is satisfied with the documents submitted by the exporter’s bank then it notifies the importer to make the payment. The importer makes the payment to importer’s bank. 14. The importer’s bank transfers the payment to the exporter’s bank. 15. The exporter’s bank transfers the payment to the exporter. 16. The exporter receives the payment
