Depending on the understanding/trust between the exporter and the importer the mode of payment varies. Importers usually pay against presentation documents on collection or by Letter of credit. In the initial purchase contract the importer proposed that payment be done by 100% sight letter of credit; all charges at advising bank are at seller’s account. L/C confirmation charges if required are at seller’s account. However, in the case a new buyer, the exporter insisted that it is one hundred percent (100%) prepaid
