An import letter of credit is issued by a domestic bank in favor of a beneficiary in a foreign country.

Name: An import letter of credit is issued by a domestic bank in favor of a beneficiary in a foreign country.
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An import letter of credit is indeed issued by the importer's (buyer's) bank, which is typically in the importer's country, in favor of the exporter (beneficiary) who is in a foreign country, to guarantee payment for goods or services provided the terms of the letter of credit are met.

An Import Letter of Credit Is Issued by a Domestic