an OFFICIAL UNDERTAKING BY THE buyer's BANK, to pay the exporter, upon receipt of documents evidencing shipment and meeting the terms and conditions stipulated in the credit

[1]  The exporter sends to the buyer a pro forma invoice, detailing the terms and conditions of the transaction

• goods specifications

• currency and amount payable

• payment terms (sight or usance)

• shipment / delivery terms (CIF, FOB, etc)

• shipment date

• type of insurance (all risks, etc)

• exporter's bank

• payment of overseas bank charges, etc.

[2]  The buyer's bank issues a documentary credit in accordance with the terms and conditions stipulated in the pro forma invoice

[3]  On receipt of the documentary credit, the exporter finalises the trade transaction and, through his bank (MCB), provides the buyer's bank with the supporting documents

• checks to ensure the documents comply with the
  terms and conditions of the credit

• hands over the documents to the buyer