A letter of credit (LC) is a written document issued by a bank at the request and on the instructions of an applicant (importer) to a beneficiary (exporter), committing to honor a payment of a specified amount within a certain period against the presentation of stipulated documents that comply with the terms of the LC, either at sight or at a determinable future date.

When both the importer and exporter agree to settle international trade payments by means of an LC, BOC can provide import L/C services for importers, including L/C issuance, amendment, document examination, payment, acceptance, or refusal. For the export trade, BOC can provide export L/C services for exporters, including L/C advising, document examinations, negotiations and confirmations.