Export and Import Procedure with Letter of Credit

Abstract

The purpose of this study is to analyze and examine international trade procedures using the Letter of Credit transaction method. The method used is a qualitative method of literature review studies and content analysis which produces various hypotheses from previous research as data sources. The results of this study are in the use of a Letter of Credit itself, there are several stages, namely, understanding, making comparisons, and reviewing activities in the field in the Letter of Credit procedure itself. In addition, there is a strategy in the use of a Letter of Credit which includes before issuance, at the time of application, and after opening, handling, as well as in sending documents. Furthermore, there are several problems in the use of a Letter of Credit, namely the Issuing Bank or the opening bank is a bank that has a small foreign exchange and its credibility is doubtful, the importer submits a request for a postponement from the disbursement of the Letter of Credit as well as problems that may arise.