Letter of Credit Issuance Process: What Happens at Each Stage?
The stages from the importer's application to the exporter receiving an advised Letter of Credit.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
Issuance runs from the importer's application to the exporter receiving the advised credit: the bank approves the application and the importer's credit line, drafts and issues the MT700, the advising bank authenticates and advises it, and the exporter reviews the terms and requests amendments if needed. The credit is irrevocable once issued (UCP 600 Art. 3, 7(b)).
| Message | MT700 |
|---|---|
| Irrevocable | Always under UCP 600 (Art. 3) |
| Issuing bank bound | From issuance (Art. 7(b)) |
Stages
- Importer submits application.
- Bank approves credit line or collateral.
- Bank issues MT700 to advising bank.
- Advising bank authenticates and advises.
- Exporter reviews; amendments requested if needed.
Speed it up
- Share a draft with the exporter first.
- Complete the application accurately.
- Agree terms in the contract beforehand.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- Swift — MT700 Issue of a Documentary Credit (category 7 standards)
General guidance, not legal advice. Your bank examines documents independently.
Related guides
Review your LC requirements
Free snapshot in under a minute. No account needed.
Upload your Letter of Credit
PDF · up to 25 MB