Document background
Letters of Credit in Shipping are essential instruments in international trade finance, particularly crucial when parties are operating under different jurisdictions. Under Singapore law, these documents provide a secure method of payment while ensuring compliance with shipping terms and documentation requirements. The Letter of Credit in Shipping serves as a bank's commitment to pay the seller upon presentation of compliant shipping documents, effectively reducing risk for both parties. It incorporates specific requirements for document presentation, shipping terms, and payment conditions, all governed by UCP 600 rules and Singapore's robust commercial law framework.
