Document background
The Import Letter of Credit (LC) is a crucial financial instrument in international trade, providing security and payment assurance to both importers and exporters. This document is particularly relevant when conducting trade under U.S. jurisdiction, where it must comply with both federal banking regulations and international banking practices. The Import LC serves as a bank's irrevocable commitment to pay the exporter upon presentation of specified documents, typically including bills of lading, commercial invoices, and inspection certificates. It is governed by U.S. law, particularly the Uniform Commercial Code Article 5, while also adhering to international standards such as UCP 600. The document is essential for businesses engaging in international trade where direct payment terms are not practical due to distance, different legal systems, or lack of established business relationships.
