L/C Advice

An L/C Advice is a written document issued by a bank to notify the beneficiary (usually the exporter) after receiving a letter of credit from the issuing bank. Its core function is to inform the beneficiary that the L/C has arrived and to remind them to check whether the L/C terms are consistent with the contract. Usage scenario: When the exporter is waiting for the L/C, the advising bank will proactively issue an L/C Advice, based on which the beneficiary prepares for shipment and document presentation. Notes: 1) An L/C Advice is not the L/C itself; the beneficiary needs to request the original or a copy of the L/C from the advising bank; 2) The advising bank only assumes the obligation to advise and does not assume payment liability; 3) If the advising bank adds confirmation, it becomes a confirmed L/C, and the liability differs; 4) The beneficiary should carefully check key information on the advice such as the issuing bank, amount, and validity period, and contact the importer promptly for amendment if there are any questions. Difference from 'letter of credit': A letter of credit is the issuing bank's payment undertaking, while an L/C Advice is only an advising act and does not constitute a payment guarantee; difference from an 'amendment advice': the latter relates to amendments to an already issued L/C.