Applicant & Beneficiary (LC)
Party requesting the LC (importer) vs. party receiving payment (exporter).
Detailed Description
Applicant & Beneficiary (LC)
Who is the Applicant in a Letter of Credit?
The Applicant is the party who requests the issuance of the Letter of Credit, typically a buyer or importer.
What is the role of the Beneficiary in a Letter of Credit?
The Beneficiary is the party in whose favor the Letter of Credit is issued, usually the seller or exporter.
What are the primary responsibilities of the Applicant?
The Applicant is responsible for initiating the Letter of Credit and ensuring that funds are available for payment.
What must the Beneficiary do to receive payment under the Letter of Credit?
The Beneficiary must comply with the terms of the Letter of Credit, including providing necessary documentation.
Why are the roles of Applicant and Beneficiary important in international trade?
These roles enhance trust and reduce risk in transactions, ensuring secure payments and smoother international trade.