Document background
The Irrevocable Transferable LC is a crucial document in international trade finance, particularly under Qatar's legal framework. It serves as a secure payment mechanism where a bank irrevocably commits to pay the beneficiary, who has the right to transfer the credit to another party. This document type is especially useful in transactions involving intermediaries or trading houses, where the first beneficiary may need to transfer the credit to ultimate suppliers. The transferable nature allows for complex trade structures while maintaining the security of an irrevocable bank undertaking. Used primarily in international trade transactions, it must comply with both Qatar's banking regulations and international standards such as UCP 600, providing a balance between local legal requirements and global banking practices.
