Document background
The Irrevocable Transferable LC is a crucial document in international trade finance, particularly under Danish jurisdiction where it combines local banking regulations with international practices. This document type is specifically used when the original beneficiary (typically a middleman or trader) needs to transfer all or part of the credit to other suppliers or manufacturers. The irrevocable nature means the terms cannot be modified or canceled without agreement from all parties involved, providing security and certainty in international transactions. The document includes detailed specifications about payment conditions, required documentation, shipping terms, and transfer mechanisms, all governed by Danish law while incorporating UCP 600 guidelines. It's particularly valuable in complex trade transactions involving multiple parties or in scenarios where the original beneficiary acts as an intermediary.
