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Erudite AfricaCenter of Excellence
← International Trade Finance Instruments

Letters of credit and the first document check

Module 03 / 5 · 65 min

Understand how an LC works under UCP 600, its types and parties, and check a coffee export document set against an LC opened by a German importer.

In this module you will learn to

  • Describe the parties, flow and documents of a letter of credit under UCP 600
  • Distinguish sight, usance, confirmed, revolving, transferable and standby LCs
  • Apply the basic examination rules: five banking days, 21-day presentation, tolerances and data consistency
  • Check a simple export document set against an LC and list the discrepancies

Built on

  • Erudite Africa training module: Ethiopian Context, topic 1.d International Trade Finance Instruments, Levels 1 and 2 (October 2026)
  • NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, FVD/01/2026, SBB/96/2025, SBB/99/2026, and the MPC No. 7 release (July 2026)
  • Ethiopian Investment Board Directive No. 1083/2025 and Special Economic Zone Proclamation No. 1322/2024
  • ICC rules: UCP 600, ISBP 821, URC 522, URDG 758, ISP98, URR 725, eUCP and Incoterms 2020
  • Commercial Code of Ethiopia (negotiable instruments), cited as reported

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.