Parties to the Transaction
•
The Buyer (Applicant/Importer)
•
The buyer initiates the documentary
credit process by
applying to his bank to open a documentary credit naming
the seller as the beneficiary. The buyer, therefore, may be
called the buyer in commercial terms, the importer in
economic terms, and the applicant in banking terms. They
are all one and the same.
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Parties to the Transaction
•
The Issuing (Buyer's) Bank
•
Upon
instructions from the buyer, the issuing bank
(typically the buyer's regular business bank)
issues a
documentary credit naming the seller as the beneficiary
and sends it to the advising bank (typically the seller's
bank).
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