Letter of Credit Example: Follow One International Shipment
A fictional, end-to-end Letter of Credit example showing dates, documents and the bank's examination.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
This fictional example follows one export shipment paid by Letter of Credit — from the MT700 terms through shipment, document preparation, presentation and payment — to show how the dates and documents connect.
| Credit (fictional) | USD 125,000.00, tolerance 05/05 |
|---|---|
| Latest shipment | 20 November 2026 |
| Expiry | 15 December 2026 |
| Presentation period | 21 days after shipment |
1. The credit arrives
The exporter receives an MT700 for USD 125,000.00 (39A 05/05), latest shipment 20 November 2026, expiry 15 December 2026, requiring an invoice, packing list, full set of bills of lading and a certificate of origin.
2. Shipment
Goods ship on board on 18 November 2026. The presentation deadline is the earlier of 9 December (18 November + 21 days) and the 15 December expiry — so 9 December.
3. Document check
Before presenting, the exporter finds the packing list gross weight differs from the bill of lading and corrects it. The invoice for USD 128,400.00 is within the USD 131,250.00 limit.
4. Presentation and payment
Documents are presented on 2 December. The bank has up to five banking days to examine them, finds them compliant and pays at sight.
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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