Banks play important role in facilitating and financing international trade transactions. One of the trade facilities offered by banks to importers is the Letter of Credit LC), which facilitates importers as well as exporters, as payments for exporters are secured. With the understanding of various types of LCs, importers and exporters would be able to identify and deal with discrepancies, alternatives to the discrepant documents, amendments to LCs and export documents, and to the presence of various sanction clauses in LCs. It is also important for those involved in LC transactions to understand the relevant clauses of UCP 600 which governs LC transaction, and also the International Standard Banking Practice (ISBP), where banks check and examine the export/shipping documents of the exporters according to ISBP.