The presentation of documents and the results of presentation under letter of credit

International markets which involves more customer than local markets encourage companies that want to increase their profitability to make international trade. However, international trade transactions carry a variety of risks in terms of import and export companies that locate in different countries and not knowing eachother. While the importer who pays for the goods desires the goods to be prepared and shipped in accordance with the specifications in the contract, the exporter who prepares and ships the goods pursuant to the contract between them wants to get price of the goods. Letters of credit is often preffered in international trade because of trying to eliminate the risks caused by differing exchange rate regimes and economic and political differences in different countries and being a payment method that is performed through banks as organizations of trust. The payment method of the letter of credit which has not usually been regulated in legislation of countries is carried out in accordance with the Uniform Customs and Practice for Documentary Credits published by the International Chamber of Commerce. Thanks to these practices providing unity are adopted by almost all countries, prevent problems that may arise due to different practices among countries. While the first part of our thesis briefly explains the methods of payment in international trade, the letter of credit method of payment is examined in detail. The subjects of the definition, types and the parties of letter of credit transactions, its legal aspects and the determination of competent courts and governing law in case of dispute are tried to inform for the understanding of the letter of credit method of payment. The second part gives detailed information about the documents used in the letter of credit transactions, explains the issues and responsibilities of exporter when presenting documents and bank when examining the documents. The third part examines the isuues of reserves against the improper documentation, paying for the complying presentation by banks. Key Words: Terms of Payments in International Trade, Letter of Credit, Complying Presentation, Reserve, UCP 600.