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As a Canadian Exporter, you have received an order from India, covering twelve, 20′ containers, of
grade A apples, to be exporter under one contract, but 12 different shipments. Shipment from
Montreal port to Mumbai port and value of each container is USD 50,000 FOB Montreal.
Canadian exporter is requesting a letter of credit at sight, supported by a red-clause letter of credit, as
well, covering twelve shipments. The Indian importer wants to issue a cumulative revolving letter of
credit, covering each shipment, and value to be negotiated upon clean documents, and discrepant fee

.
On a group basis, please research, analyze, and discuss in a detailed manner the following:

2) Please provide your answer, by giving factual evidence, of utilizing trade finance rules, the role of
documents, and the credibility of the banks involved.