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TD Securities

Import Letters of Credit

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A method of payment commonly used in international trade transactions, whereby the Issuing Bank promises to pay the Exporter – provided the Exporter complies with the terms and conditions of the Letter of Credit. A Letter of Credit may also be referred to as a Documentary Credit.



  • Irrevocable Letters of Credit cannot be cancelled or changed without the consent of all parties involved (Importer, Exporter, and the Issuing Bank).
  • May be payable upon presentation of certain documents (sight) or at a future date after documents have been accepted under the Letter of Credit (term or usance).
  • The Letter of Credit should be consistent with the terms and conditions stipulated in the commercial contract.
  • Can be transferred to a third party if stipulated in the Letter of Credit.
  • Import Letter of Credit applications can be completed and forwarded electronically via to TD Bank Group for processing.


  • Importer is assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met.
  • Importer may be able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered.
  • Templates can be created on to allow for efficient issuance of Letters of Credit to repeat suppliers.
  • Electronic issuance of Import Letters of Credit via is available at no additional cost above issuance fees.


  • Importer must have a credit facility with the Issuing Bank in order for a Letter of Credit to be issued. requires initial set up by a Global Trade Finance Specialist.

    August 10, 2020
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