Amendment
•
Buyer
2. If the buyer agrees, the buyer
orders the issuing bank to
issue the amendment.
•
Issuing Bank
3. The issuing bank amends the credit and notifies the
advising bank of the amendment.
•
Advising Bank
4. The advising bank notifies seller of the amendment.
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Utilization
•
Procedure
Refer to the diagram on the facing page for each numbered step.
•
Seller
1. The seller (beneficiary) ships
the goods to the buyer and
obtains a negotiable transport document (negotiable bill of
lading) from the shipping firm/agent.
2. The seller prepares and presents a document package to his
bank (the advising bank) consisting of (a) the negotiable
transport
document, and (b) other documents (e.g.,
commercial invoice, insurance document, certificate of origin,
inspection certificate, etc.) as required
by the buyer in the
documentary credit.
30
Utilization
•
Advising Bank
3. The advising bank:
(a)
reviews the document package making certain the
documents are in conformity with the terms of the credit
and
(b)
pays the seller (based upon the terms of the credit).
4. The advising bank sends the
documentation package by
mail or by courier to the issuing bank.
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