The operation of the Letter of Credit starts with the importer.He instrubsp;his bank to issue an Lbrbsp;in favor of the ller for the amount of the purcha.Here the importer is called the applit，or opener，principal etc.；the bank that issues the credit is called the opening bank，the issuing bank or the establishing bank，and the exporter in who favor the credit is opened is called the beneficiary.The opening bank nds the credit to its correspo bank in the exporter’s try，who will，after examining the credit，advi the exporter of its receipt.Here the correspo bank is called the advising bank.The exporter or beneficiary will make a careful examination of all the tents of the credit and will request the opener to make ames to any discrepancies in the credit so as to ensure safe and timely payment.Sometimes the exporter may require a firmed Letter of Credit either bebsp;the credit amount is too large，or bebsp;he does not fully trust the opening bank.The bank that adds its firmation to the credit is called the firming bank whibsp;is uaken either by the advising bank or another prime bank.When everything with the credit is in order，the exporter will prepare the relevant dots bad on the credit and dispatbsp;the goods to the importer.Then he will prent the draft and the apanying dots to the advising bank that pays or accepts or iates the bill of exge.The advising bank then also bees the paying bank whibsp;absp;as the agent of the opening bank.and gets reimburd by the opening bank after paying the beneficiary.If a bank either nominated by the opening bank or at its own choice，buys the exporter’s draft submitted to it under a credit，it is called a iating bank.The draft and the dots will then be nt to the opening bank for reimburment.
The operation of the Letter of Credit starts with the importer.He instrubsp;his bank to issue an Lbrbsp;in favor of the ller for the amount of the purcha.Here the importer is called the applit，or opener，principal etc.；the bank that issues the credit is called the opening bank，the issuing bank or the establishing bank，and the exporter in who favor the credit is opened is called the beneficiary.The opening bank nds the credit to its correspo bank in the exporter’s try，who will，after examining the credit，advi the exporter of its receipt.Here the correspo bank is called the advising bank.The exporter or beneficiary will make a careful examination of all the tents of the credit and will request the opener to make ames to any discrepancies in the credit so as to ensure safe and timely payment.Sometimes the exporter may require a firmed Letter of Credit either bebsp;the credit amount is too large，or bebsp;he does not fully trust the opening bank.The bank that adds its firmation to the credit is called the firming bank whibsp;is uaken either by the advising bank or another prime bank.When everything with the credit is in order，the exporter will prepare the relevant dots bad on the credit and dispatbsp;the goods to the importer.Then he will prent the draft and the apanying dots to the advising bank that pays or accepts or iates the bill of exge.The advising bank then also bees the paying bank whibsp;absp;as the agent of the opening bank.and gets reimburd by the opening bank after paying the beneficiary.If a bank either nominated by the opening bank or at its own choice，buys the exporter’s draft submitted to it under a credit，it is called a iating bank.The draft and the dots will then be nt to the opening bank for reimburment.