Import Letter of Credit Law and Legal Definition
Import letter of credit means a commercial letter of credit established in favor of an exporter. It is usually issued by a domestic bank in favor of a foreign seller at an importer’s request. Import letter of credit has several benefits such as:
a. It ensures control and security because payment is made only against the documents specified;
b. It ensures the advantage of experience;
c. It enhances the bargaining position; and
d. It improve the competitive status particularly with suppliers who insist on payment by letter of credit.