Import Letters of Credit

Log In

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.


  • 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

Contact Global Trade Finance