Dear Ankit, Pls ref telecom. Importer can make payment in following two ways:1.

against letter of credit (LC). LC can be irremovable, confirmed, sight LC or deferred LC. 1. Irrevocable - means clauses of LC can be changed by buyer once opened without the consent of seller or exporter.

2. confirmed - the bank in seller or exporter's bank confirms the LC and makes payment to seller
as soon original docs as per LC are presented. if LC is no confirmed, then negotiating bank(in seller's country) sends original documents to the buyer's bank(who has opened the LC) and once opening bank checks the docs and finds that original docs are conforming to LC, then he makes payments. In second case sometime, time taken is upto 7 to 10 days extra than confirmed LC. Confirmed - LC can be of two types, confirmed and unconfirmed. in confirmed LC negotiating bank(in seller's country) makes the payment to seller as soon as original docs are received and are conforming to LC i.e. are as per LC. in other case, negotiating bank sends original docs to the opening bank(in buyer's country) for payment. 3. Sight LC - payment is made immediately documents are submitted.

4. Deferred LC or usance LC - payment is made after the expiry of credit period. Suppose as
per LC payment is after 90 days or 180days from the date of Bl then seller gets the payment after expiry of credit period. 2. CAD means cash against documents. here no LC is opened. Buyer sends some advance say 10%. Seller after shipments sends original documents to buyer's bank. As soon as buyer makes the payment, he gets original documents. In CAD there is risk to seller. 3. Following documents are general part of LC or CAD payment: a) Original invoice b) Bill of lading c) Packing list d) Certificate of origin e) Insurance certificate - which is always 110% of invoice value f) Analysis certificate pls call if you have any questions.

-________________________ Virginia Metals Private Limited (In Metals since 1980) CO: 103 KS complex,1/1 Vaishali-201010