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Practice with stories

Case studies make the fields feel real.

Each case is simplified so the learner can focus on one or two important ideas.

Case 1 · Simple sight LC

A buyer opens a USD 500,000 irrevocable credit. Payment is at sight. Documents are invoice, packing list, certificate of origin and clean on-board B/L. Partial shipment and transshipment are allowed.

  • This is comparatively easy for a beginner to read.
  • The document list is short.
  • Payment timing is simpler than a future usance tenor.

Case check

What is the first payment-timing point to notice?

Case 2 · 60-day usance LC

A USD 10 million LC is available by negotiation. Drafts are at 60 days after sight. Partial shipment and transshipment are allowed. It requires a signed invoice, full set 3/3 clean on-board bills of lading, certificate of origin, packing list and a shipping-company certificate.

  • This is not immediate payment.
  • Transshipment gives route flexibility.
  • The document list is more demanding, especially the full-set B/L and extra shipping certificate.

Case check

Which item deserves special practical attention?

Case 3 · Difficult draft

A USD 30 million LC has a long 47A with many special certificates. One certificate must be issued by an organisation that does not exist in the shipment country. Transshipment is prohibited even though the planned route normally needs one transfer.

  • The headline amount looks impressive.
  • But the documentary requirement may be impossible.
  • The transport restriction may conflict with the real route.

Case check

What should happen before issuance?