Document background
The Import Letter of Credit is a fundamental trade finance instrument used when Danish companies import goods from overseas suppliers. It provides payment security to the seller while giving the buyer assurance that no payment will be made until the required documents are presented in compliance with the credit terms. Operating under Danish law and EU regulations, this document type incorporates the globally recognized UCP 600 rules and local banking practices. The Import Letter of Credit is particularly crucial when dealing with new trading partners, high-value transactions, or when required by local regulations in the exporting country. It specifies all terms of payment, shipping requirements, and documentation needed, while clearly defining the roles and responsibilities of all involved banks and parties.
