A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Question

Quizplus · Accepted Answer

A letter of credit is issued by a bank to guarantee payment to the exporter once certain conditions have been met, such as receiving the correct documents or delivering the goods to the agreed-upon destination. The transport carrier is not responsible for issuing a letter of credit.

A Letter of Credit Is Issued by the Transport Carrier