Letters of Credit Structure.

Letters of Credit Structure: All LC transactions are related to the documents only.

UCP 600 article 5 says, “Banks deal with documents and not the goods, services or performance to which the documents may relate." Whatever the goods or services is traded between the beneficiary and the applicant, the only thing that banks will take into account and evaluate when deciding a conforming presentation is the documents. Therefore, the working structure of letters of credit is very convenient to long distance consulting services. It is almost the same, consulting an expert at the same office or hundred miles away. Thanks to the Internet, it is very cost competitive conducting the second kind of consulting services with only a considerable fee.