Documentary credits take different forms, can be classified in terms of the strength of the undertaking (ie the commitment by the banks) to the two types of credit irrevocable and absolute dependence (irrevocable).
Irrevocable credit
Dependence irrevocable or veto that is may be amended or repealed by the issuing bank to him at any moment without prior notice to the beneficiary. This type is rare to use, where did not find acceptance in the practical application by exporters as caused them damage and risk, so that reliance irrevocable gives considerable advantages to the importer he can withdraw from its commitment to, or change the conditions or the introduction of new conditions at any time without the need to Inform the beneficiary, is that the amendment or veto does not become effective only after receiving the correspondent notice he is directing the issuing bank for this purpose, in the sense that the issuing bank will be linked to the beneficiary to pay the value of the documents in the event that this payment was made by the correspondent bank before receipt flag amendment or cancellation.
Irrevocable credit
Dependence irrevocable or veto that is may be amended or repealed by the issuing bank to him at any moment without prior notice to the beneficiary. This type is rare to use, where did not find acceptance in the practical application by exporters as caused them damage and risk, so that reliance irrevocable gives considerable advantages to the importer he can withdraw from its commitment to, or change the conditions or the introduction of new conditions at any time without the need to Inform the beneficiary, is that the amendment or veto does not become effective only after receiving the correspondent notice he is directing the issuing bank for this purpose, in the sense that the issuing bank will be linked to the beneficiary to pay the value of the documents in the event that this payment was made by the correspondent bank before receipt flag amendment or cancellation.
