LC
You may not know your supplier personally, But he's bank know.
The supplier may not know you personally, But your bank know.
LC is the safest method using in the international trade.
According to the current exchange regulations for vehicles LC's can be opened only on sight basis.
LC at Sight -
Once you open the LC with your bank they send it to your suppliers bank and then the supplier will receive it. Once the supplier receive the LC he's able to send the goods to you.
Letter of credit is simply an agreement between you and your supplier while the banks protect both parties.
Once the goods are shipped the supplier needs to submit all required documents to his bank.
The suppliers bank will check whether all documents are complied with the LC.
Once the docs are checked the supplies bank will send all documents to your bank.
Only after you check and accept the documents your bank will release the payment to the supplier.
### If you are caught to a top class theft he could declare false information and ship the goods. You may release the payment as the documents are in order and you are unable to check the shipment physically. But this situ is rare. ###
