The payee of a draft should be the exporter in internatonal trade.

Documentary credit is a separate transaction from the sale or other contract on which it may be based. Banks deal with documents and not with goods, services or performance to which the documents may relate.

Documents of presentation under the letter of credit cannot be dated prior to issuance date of credit, also they cannot be dated later than the expiry date for presentation.

According to UCP 600 article 15 and 16, when an issuing bank determines that a presentation is complying, it must honour.

A draft is also called a bill of exchange, it is a written, unconditional order issued by one party (the drawer) to another (the drawee) to pay a certain sum to the payer.

A draft can be made payable to bearer/holder. This type of draft is acceptable by the Chinese banks.

The commercial invoice must be made out in the name of the beneficiary of the letter of credit.

The issuing date of a commercial invoice can be earlier than the issuing date of the letter of credit, but should not be later than the expiry date of the credit.

A neutral packing list is a packing list without the name of the buyer printed on the list.

A packing list usually does not contain unit price and total price of the goods.