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Letters of Credit
The Traditional UCP Letter of Credit
Buyer
Issuing Bank
Advising / Negotiating Bank
Negotiable Documents
Goods & Services
Letter of Credit
Seller
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UCP
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The traditional UCP Letter of Credit is issued by the buyer’s bank and advised to the seller by a bank in the seller’s country.  The negotiable paper documents that are generated by the seller after shipment are presented to the advising bank.  The advising bank becomes the negotiating bank, and forwards them to the issuing bank after examination.  The seller pays the bank fees in his country and the buyer is responsible for the fees in his country.