Bank Fees Under Documentary Credits Explained: Who Pays What? (LC Fees Guide)

Are you tired of unexpected charges chipping away at your international trade profits? This comprehensive guide breaks down every single bank fee associated with a Documentary Credit (Letter of Credit or LC) transaction. As an importer or exporter, you need to know exactly where these hidden costs come from, who is responsible for paying them, and, crucially, how to avoid the most expensive penalties.
​We cover the full spectrum of LC Fees, from basic issuance and amendment costs to the optional services like confirmation and negotiation. Don't let a small paperwork mistake cost you thousands—learn why 70% of documents contain errors and how those Discrepancy Charges are applied!

​Key Takeaways from This Video:
​Importer's Costs: Discover the core fees the Applicant pays for issuing and amending the Documentary Credit.
​Exporter's Costs: Learn about the value-added services you might pay for, such as Advising, Confirmation, and early Negotiation.
​The Discrepancy Trap: Understand the most common and costly mistake in trade finance (a fee that can be taken right out of your payment!).
​Ultimate Responsibility: Find out the surprising rule about who the bank ultimately chases for all unpaid costs.

​🔔 Call to Action & Engagement
If this video clarified the confusing world of LC Bank Charges, please Like this video and Subscribe to Vanijja for more straightforward guides on complex trade finance topics!

​We genuinely love to hear your thoughts and experiences! How can buyers and sellers work together better from the very start to eliminate documentation errors? Share your tips in the comments below! 👇

Timestamps and Content Chapters
​To help your audience navigate this complex topic, here are the video chapters:
[00:00] Introduction to Hidden Documentary Credit Costs
[01:12] Importer's (Applicant's) Basic LC Issuance Costs
[02:11] Who is the Applicant & Beneficiary? (The Golden Rule of Payment)
[02:59] The Transferable Credit Exception
[03:25] Exporter's Service Fees (Advising, Confirmation, Negotiation)
[04:15] Unconfirmed vs. Confirmed Credit Security
[04:39] The HUGE Risk of Negotiation with Recourse
[05:00] The #1 Unexpected Cost: Discrepancy Charges
[06:15] Final Administrative & Operational Charges
[07:22] Recap: Ultimate Responsibility for All Bank Costs
[08:14] Final Summary and Key Takeaways

Contact Information
​Contact Details:
​Email: [email protected]
​Media Creator LinkedIn Profile: Nhem Ratha
​Facebook Page "Vanijja": Kh.Vanijja

Video Content Tags
​To maximize search and algorithm reach, use these tags:
Documentary Credit, Letter of Credit, LC, Bank Fees, Trade Finance, International Trade, Import, Export, Bank Charges, Documentary Collection, UCP 600, Global Trade, Hidden Costs, Discrepancy Fee, Confirmation Fee, Advising Fee, Issuing Fee, Trade Documentation, Vanijja