In export documentation it is necessary for clarity in essential elements fundamental to export. The letter of credit is a basic underlying requirement in its progress. It provides a dependable mode of payment. A letter of credit symbolises: It is an undertaking by the bank to make payment. It has to be in writing. The bank is called the issuing bank. According to the steps set down by the buyer and his request to the issuing bank it is given to the seller called the beneficiary. With it the buyer instructs the bank to make payment to the beneficiary or give a draft i.e. bill of exchange. The amount for payment has to be specified. It has to be cleared within a fixed time against valid documents. The letter of credit may be revocable or irrevocable Other methods of payment, for eg. by cash along with the order exist. Or by open account where the buyer on receiving goods at an agreed time remits payment. For a safe and smooth journeys end of the export transaction furnishi