Due to the L/C belongs to bank credit, application of L/C solves the problem of mutual distrust of the exporter and importer. As a result, the method of payment by L/C has developed very fast in recent year and is widely used in intemational trade. From the principles of L/C, the bank checks the L/C only on the surface rather than check the contract and the cargo, which gives the unscrupulous businessmen a great chance to engage in fraud. To prevent fraud, the exporter, the importer and the bank should take some measures such as strict examination of the contract and the L/C so as to guard aga...
