One of my trading companies exported a batch of goods to Japan CIF Osaka. On April 20th, the Bank of Tokyo, Japan opened an irrevocable letter of credit at sight.

As the payment method of letter of credit is bank letter of credit, the issuing bank bears the main payment responsibility. Payment under the letter of credit is a kind of document sale, so as long as the documents submitted by the beneficiary conform to the provisions of the letter of credit, the issuing bank should fulfill its payment obligations. In this case, I signed a contract with a Japanese businessman to export the goods by irrevocable letter of credit at sight. Although we learned that the importer was on the verge of bankruptcy due to financial problems before shipment, because of the primary payment guarantee of the issuing bank, and the issuing bank is a bank with good credit, we can ship the export according to the provisions of the letter of credit, and make a set of settlement documents in time to the negotiating bank for negotiation within the validity period of the letter of credit. Of course, we can also sell the goods to a third party according to the actual situation.