The 1 is the party who requests and instructs the issuing bank to open a letter of credit in favor of the beneficiary. The 2 usually is the importer or the buyer of goods and/or services. The 3 is the party in whose favor a letter of credit is opened by the issuing bank. The 4 usually is the exporter or the seller of goods and/or services. The issuing bank opens a letter of credit in favor of the beneficiary, at the request and on the instructions of the applicant. The issuing bank usually is located in the applicant's country. The advising bank advises the beneficiary that a letter of credit opened by the issuing bank is available to him/her and informs the 5 about the terms and conditions of the L/C. The advising bank is not necessarily responsible for the payment of the credit which it advises.