When payment is made only under compliance with the ____________ conditions, the importer is able to ascertain that the merchandise is actually shipped on or before a certain date by requiring an on-board bill of lading
A) letter of credit
B) cash in advance
C) documentary collection
D) open account terms

Question

Quizplus · Accepted Answer

Under the letter of credit payment method, the importer and exporter agree to certain conditions, which could include the requirement for an on-board bill of lading to prove that the merchandise has been shipped on or before a certain date. The letter of credit is a secure payment method for the exporter, as they receive the payment only after meeting the agreed-upon conditions.

When Payment Is Made Only Under Compliance with the ____________