International trading service offered by BKAW involves import and export transactions between sellers and buyers located at least in two different countries especially that those two parties do not necessarily know each other and therefore are undertaking many risks.

The documentary credit (L/C) comes as a facility provided by banks so that BKAW facilitates international (even local) trade transactions between parties involved:

• For the seller, who wants to secure payment before the relinquishments control of his goods

• For the buyer, who wants to gain control of the goods before he proceeds with the payment

For these main reasons the role of our bank in documentary credit operation is to reduce or eliminate the commercial credit risk since payment is assured by the bank which issues an irrevocable documentary credit, then the seller no longer needs to rely on the willingness and capability of the buyer to make payment.

Furthermore, this payment will be made on the basis of documents which should be in compliance with the terms and conditions of the documentary credit.Then the buyer is now confident that payment will only be made on the said basis which reflects that the seller has fulfilled his obligations in shipping the goods.

All documentary credits issued by BKAW will be subject to the Uniform Customs & Practice-UCP and the International Standard Banking Practice-ISBP- both latest version, International Chamber of Commerce-ICC Paris Publication.