Letters of Credit (LC) are one of the most versatile and secure instruments available to international traders.

A letter of credit is a commitment by a bank on behalf of the importer (foreign buyer) that payment will be made to the beneficiary (exporter), provided the terms and conditions stated in the letter of credit have been met, as evidenced by the presentation of specified documents.

LC issued by a Foreign Bank (Issuing Bank) can be advised, confirmed by the Beneficiary’s Bank called as the Advising Bank.

During the validity of the Letter of Credit the beneficiary can initiate/request closure of the LC. This user story describes how the Issuing Bank handles Import LC closure in OBTFPMCS.