Document background
The Deferred LC document is essential for international trade transactions where delayed payment terms are required under Qatar jurisdiction. It's particularly useful when importers need extended payment terms while providing security to exporters. The document establishes the terms under which a bank commits to pay the beneficiary at a specified future date, typically 30 to 180 days after document presentation. The structure must comply with Qatar's banking regulations, commercial law, and Shariah principles where applicable, while incorporating international banking practices under UCP 600. A Deferred LC is commonly used in large commercial transactions, particularly in sectors such as manufacturing, construction, and international trade, where capital intensive purchases require payment flexibility.
