eLetter of Credit Instructions                           Return to eTFP

BOA + Data = LCI

Letter of Credit Instructions

The Letter of Credit Instructions are the terms and conditions that the seller requests the buyer to put into a Letter of Credit. The Letter of Credit Instructions contains the amount required in a Credit to support the planned purchases of the buyer.  The amount of money requested in the Letter of Credit Instructions is the amount estimated in the Proforma Invoice and includes all of the costs above the cost of goods.

eLetter of Credit Trade Function

The eLetter of Credit (LCI) is the electronic document equivalent of the Letter of Credit Instructions.  It is created using the same information generated by the seller.  It is used for electronic presentation of terms and conditions required in a Letter of Credit to be issued to support a purchase.

Discussion

International transactions are by their nature complicated and involve many different parties.  The Letter of Credit Instructions provides the detailed terms and conditions for a Credit.  These terms and conditions are the ones agreed to between the buyer and seller.  Otherwise third parties and the banks will add terms and conditions not known or agreed to.