L/C Advising

L/C Advising refers to the act whereby the advising bank (usually a bank located in the exporter's country), entrusted by the issuing bank, informs the beneficiary (exporter) of the authenticity and content of a letter of credit. Usage scenario: After the importer (applicant) applies to the issuing bank for the issuance of an L/C, the issuing bank transmits the L/C through its overseas correspondent bank or branch to the advising bank in the exporter's country; the advising bank verifies the test key or signature and then advises the L/C to the beneficiary. Precautions: The advising bank is only responsible for advising and does not assume payment liability; if the advising bank cannot confirm the authenticity of the L/C, it should inform the beneficiary; upon receipt of the advice, the beneficiary should carefully check the L/C terms and, if there are any doubts, promptly contact the advising bank or the importer to make amendments. Distinction from other terms: L/C Advising is different from L/C Confirmation, where the confirming bank assumes an independent payment liability; it is also different from L/C Negotiation, which is the act of a bank purchasing drafts/documents.