Document background
Letters of Credit (LCs) are fundamental instruments in international trade finance, providing security and payment assurance to parties involved in cross-border transactions. A Non-Transferable LC specifically restricts the beneficiary's ability to transfer their rights under the credit to another party, providing additional control and security for the applicant. This document type is particularly relevant when the applicant wants to ensure they are dealing exclusively with the named beneficiary. Under Qatar law, these instruments must comply with both local regulations (including Qatar Commercial Law and Qatar Central Bank requirements) and international banking standards (UCP 600). The document is commonly used in situations where the buyer requires strict control over the transaction chain or where the specific expertise/products of the named beneficiary are crucial to the transaction.
