Document background
The Export Letter of Credit is a crucial document in international trade transactions under Danish jurisdiction, providing payment security to exporters while offering importers assurance of goods delivery. This instrument is particularly vital when dealing with new business relationships, high-value transactions, or trading with partners in politically or economically volatile regions. The Export Letter of Credit details specific conditions that must be met, including document requirements, timeframes, and payment terms, all while complying with Danish legal requirements and international banking standards (UCP 600). It serves as a primary method of payment in international trade, reducing risks for both parties by introducing banks as intermediaries who guarantee the transaction based on document compliance rather than the actual goods.
