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Abstract

Documentary credits play a pivotal and significant role in international trade, serving as one of the most widely utilized payment instruments globally for both importers and exporters due to their capacity to mitigate potential risks for all parties involved. They provide exporters with the assurance of receiving full payment upon fulfilling contractual obligations, while simultaneously protecting importers by ensuring that payment is only rendered after the goods have been shipped and the required documents have been duly presented and received. To regulate these processes formally, local, regional, and international commercial banks issue specific instructions, complemented by the ongoing efforts of the International Chamber of Commerce (ICC) in Paris. Since World War I, the ICC has periodically issued successive publications to establish a common framework governing all parties engaged in documentary credits; these foundational principles are now recognized globally as the Uniform Customs and Practice for Documentary Credits (Hussein, 1988: 97).

DOI

10.33095/jeas.v13i47.1189

Subject Area

Accounting

First Page

207

Last Page

238

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