Document background
An Irrevocable Revolving Letter of Credit is a specialized banking instrument used in recurring international trade transactions where regular shipments or periodic payments are required. This document type is particularly relevant in Hong Kong, one of Asia's primary financial centers, where it combines local banking regulations with international practices (UCP 600). It provides an automatically renewable credit facility while maintaining the security of a traditional letter of credit, making it ideal for ongoing trade relationships. The instrument is commonly used when buyers and sellers have established relationships requiring regular shipments, but still need the security of bank-guaranteed payments. The irrevocable nature means the terms cannot be modified or cancelled without agreement from all parties, providing additional security for international trade transactions.
