INTERNATIONAL TRADE - SUMMARY OF EXPORT- IMPORT
PROCEDURES
LC APPLICANT / BUYER
(Importer)
⓫ Buyer surrenders Bill of
Lading to carrier (in case
of ocean freight) in 11
exchange for the goods
or the delivery order
❷ Buyer applies LC from
Issuing Bank, in Buyer's
country, in favour of Seller
❿ Documents release to Buyer after
payment or on other terms
agreed between the bank and
Buyer
❾ Issuing bank examines the
documents and BE with T&C. Pay
Negotiating Bank
MURNI ALLIANZE CONSULT SDN BHD
❺ T&C has to conform to sales
contract. Seller prepares
goods and documentation
and arranges delivery of
goods to carrier. Appoint
❶ Seller and Buyer conclude a sales freight forwarder to clear at
contract. Method of payment by custom & ship goods
Letter of Credit
5
LC BENEFICIARY / SELLER ❻ Seller presents documents
(Exporter) evidencing the shipment and
Draft (Bill of Exchange - BE) to
1 negotiating bank
9 7 ❹ Advising bank in seller's country forwards
4 LC (Terms and Conditions - TC) to Seller
2 10 REIMBURSING BANK 6
❼ Negotiating Bank examines the documents and
8 draft for compliance with T&C & give advance to
seller. Claim reimbursement from Issuing Bank or
Reimbursing Bank
ISSUING BANK 3 ADVISING BANK / CONFIRMING / NEGOTIATING BANK
❸ Issuing bank requests the correspondent ❽ Negotiating Bank sends the documents
bank in Seller's country, to advice the LC and BE to the issuing bank
AM I EXPORTABLE: GALAKAN EKSPORT BUMIPUTERA 1