Document background
The Usance LC 90 Days is a specialized trade finance instrument used in international commerce when buyers require extended payment terms and sellers need secure payment guarantees. This document is particularly relevant in the Indian market where import-export transactions require compliance with Reserve Bank of India (RBI) guidelines, Foreign Exchange Management Act (FEMA), and international banking practices under UCP 600. It provides a structured framework for deferred payment over 90 days while ensuring security for both parties. The document includes crucial elements such as documentary requirements, payment terms, shipping conditions, and bank obligations. It's commonly used in situations where buyers need time to generate funds from the sale of imported goods or manage their working capital more effectively.
