Import Letters of Credit

A method of payment commonly used in international trade transactions, whereby the issuing bank promises to pay the exporter – provided the exporter complies with the terms and conditions of the letter of credit. A letter of credit may also be referred to as a documentary credit.

Download the forms you need

Letter of Credit Application (77k, PDF)

Letter of Credit Amendment (34k, PDF)

• Irrevocable letters of credit cannot be cancelled or changed without the consent of all parties involved (importer, exporter and the issuing bank)
• May be payable upon presentation of certain documents (sight) or at a future date after documents have been accepted under the letter of credit (term or usance)
• The letter of credit should be consistent with the terms and conditions stipulated in the commercial contract
• May be transferred to a third party if stipulated in the letter of credit
• Import letter of credit applications may be completed and forwarded electronically via TD Bank Trade to TD Bank for processing

• Importer is assured that, for the exporter to be paid, all terms and conditions of the letter of credit must be met
• Importer may be able to negotiate more favorable trade terms with the exporter when payment by letter of credit is offered
• Templates can be created on TD Bank Trade to allow for efficient issuance of letters of credit to repeat suppliers

• Importer must have a credit facility with the issuing bank in order for a letter of credit to be issued
• Electronic issuance of import letters of credit via TD Bank Trade is available at no additional cost above issuance fees and requires initial setup by TD Bank Global Trade Finance