What are the provisions of the letter of credit payment process?

Legal analysis: 1. The buyer and seller stipulate in the trade contract that payment should be made by documentary credit. 2. The buyer informs the local bank (issuing bank) to open a letter of credit in favor of the seller. The issuing bank requires another bank to advise or confirm the letter of credit. The advising bank informs the seller that the letter of credit has been opened. The seller should ship the goods after receiving the letter of credit and ensuring that it can meet the conditions stipulated in the letter of credit. 6. The seller shall submit the documents to the designated bank.

Legal basis: Measures for the Settlement of Letters of Credit in People's Republic of China (PRC) Article 4 The head office of a commercial bank approved by the People's Bank of China and its branches approved to operate the settlement of letters of credit may handle the settlement of letters of credit. Unauthorized banking institutions, urban credit cooperatives, rural credit cooperatives and other non-bank financial institutions may not handle the letter of credit settlement business.