UNIT FIVE
Documentary credit transactions
Documentary credits (or Letters of Credit) are a very important METHOD OF PAYMENT in international trade. They are normally IRREVOCABLE which means that they cannot be changed or cancelled without the agreement of all parties. In order to understand how they work you must first realize that there are four parties to a Documentary Credit transaction.
a1 The buyer or importer = silver office supplies
b2 The importer's bank (the issuing bank) = finlays bank,london
c3 The seller or exporter = shonan computers
d4 The exporter's bank the ADVISING or CONFIRMING Bank) = the yotsuboshi bank, tokyo