1. Importer/representative applies for Irrevocable Documentary Letter of Credit (L/C) with a bank that provides service to the importer, using the Proforma Invoice as attached document. 2. Importer’s bank checks documents and financial condition. 3. In case of no debt, the importer’s bank issues L/C with conditions specified by the importer in the application 4. The importer’s bank as L/C Issuing Bank sends L/C to the exporter’s bank. 5. The exporter’s bank as L/C Advising Bank informs exporter/representative to receive the original L/C so that the goods delivery and other operation are done accordingly as specified in the L/C 6. Exporter/representative pays the fee and receives the original L/C 7. Exporter/representative delivers goods to importer. 8. Exporter/representative prepares documents as specified in the L/C 9. Exporter/representative submits those prepared documents to receive the money from the L/C Advising Bank. 10. The L/C Advising Bank checks documents. 11. If those documents meet the conditions in L/C, the L/C Advising Bank sends them to the L/C Issuing Bank. 12. The L/C Issuing Bank checks documents 13. If those documents meet the conditions in L/C, the L/C Issuing Bank transfers the money to the L/C Advising Bank within 7 days and then informs the importer/ representative of its receiving those documents 14. The L/C Advising Bank transfers money to the exporter. 15. Importer/representative makes payment and receive documents. 16. Importer/representative takes the documents to run the customs clearance process. 17. If those documents don’t meet the conditions in L/C, the L/C Issuing Bank informs the importer and considers the payment approval. The bank will make payment only upon approval by importer/representative.
