Article 195 of the Criminal Law of People's Republic of China (PRC) has one of the following circumstances, which constitutes the crime of letter of credit fraud. Whoever commits fraud by letter of credit shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property:

(1) Using forged or altered letters of credit or accompanying documents and documents;

(2) Using an invalid letter of credit;

(3) defrauding a letter of credit;

(4) fraudulent activities of letters of credit by other means.