Conduct of a documentary crédit, step by step (page 2/2)


Import payment is one of the main preoccupation of companies that are doing international transactions. Trade is important, but be paid, of course, essential. Esandis offers you a free tools space dedicated to import and export transactions, and all the skills you need to be an export or an import manager.

Our objective is to provide a solution you to understand how important is the payment component of an international transaction. With this example, you will be able to have a quick look to a transaction that is secured with a documentary credit.


Get to the beginning of this secured transaction

Preparation of the goods by the exporter

5- Sending of the goods

The carrier in takes charge the goods
 

 

The exporter receives the documents and sends it

6-1- Transport documents

6-2-Other documents : certificat of inspection, movement certificat, certificat of origin, insurance certificat
7- Documents

The exporter checks the documents

8- Payment

The exporter's bank pays the exporter

The exporter is credited

The exporter's bank sends the documents
9- Documents

The import's bank receives and checks the documents
10-Payment

The bank credits the exporter's bank
The exporter's bank is credited

 
      The importer's bank asks the importer to be paid
 
 
     

11- Documents
12- Payment

Importer
 
      The importer's bank is credited
 

The carrier gives the goods to the importer

13- Documents

14- Goods

Importer

The transaction is now completed, the exporter has been paid and the importer has received its goods, the two banks, the importer and the exporter's bank can be considered here as intermediaries.