Who Is the Applicant in a Letter of Credit?
Who the applicant of a Letter of Credit is, and what the applicant controls and pays for.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
The applicant is the party on whose request the Letter of Credit is issued — usually the buyer or importer (UCP 600 Art. 2). It sets the credit's terms through its application to the issuing bank, pays the issuing bank's fees and reimburses it, and may be asked to waive discrepancies. Its name appears in MT700 field 50.
| Usually | Buyer / importer |
|---|---|
| MT700 | Field 50 |
| Controls | Terms, amendments, waivers |
Responsibilities
- Apply for the credit on terms matching the sales contract.
- Request amendments when agreed.
- Reimburse the issuing bank.
- Decide on waivers of discrepancies.
For exporters
- The commercial invoice must be made out to the applicant (Art. 18(a)(ii)).
- The applicant's waiver does not oblige the bank to pay.
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.
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