1.

Sales Contract between Buyer and seller

2. Application submitted by the buyer ( importer) to his Bank for an LC
3. Buyer’s Bank delivers LC to Corresponding/ Advising bank
4. Advising Bank advises LC to the Exporter
5. Exporter ships goods to the buyer ( hands over goods to the shipping
company)
6. Bill of lading handed over to the exporter by the shipping company
Goods sent to the port of discharge
7. Documents including the Bill of lading handed over to the exporter bank
8. Documents sent to Importer bank by the Exporter bank
9. Draft accepted by the importer if DA. If DP, funds released by the importer
bank to exporter bank
10.Payment to exporter
11. a. Documents released to the buyer against payment or against acceptance
b. Payment to issuing bank immediately if DP and after completion of
usance period if DA
12.Bill of lading to the shipping company
13.Cargo released