Document background
An Import Letter of Credit is a fundamental document in international trade finance, used when an Irish company wishes to purchase goods from overseas suppliers. This document represents a bank's irrevocable commitment to pay the seller upon presentation of compliant documents, thereby minimizing risk for both parties in cross-border transactions. The document must comply with Irish banking laws, EU regulations, and international banking standards, particularly the UCP 600. It specifies key details including payment terms, shipping requirements, and document presentation conditions. Import Letters of Credit are especially vital when dealing with new trading partners or in situations where sellers require payment security before shipment.
