Irrevocable Documentary Letter Of Credit

Irrevocable Documentary Letter Of Credit Template for Hong Kong

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Key Requirements PROMPT example:

"I need an Irrevocable Documentary Letter of Credit for a Hong Kong electronics manufacturer exporting goods worth USD 2.5 million to a European buyer, with specific requirements for partial shipments and a 120-day validity period from March 2025."

Document background

The Irrevocable Documentary Letter of Credit is a fundamental instrument in international trade finance, providing security to both buyers and sellers in cross-border transactions. It is particularly crucial when parties are in different jurisdictions or unfamiliar with each other's creditworthiness. Under Hong Kong law, which combines common law principles with specific local regulations and international banking practices (UCP 600), these instruments offer robust protection for all parties involved. The document includes detailed specifications for payment conditions, required documentation, shipping terms, and compliance requirements. Its irrevocable nature means that once issued, it cannot be amended or cancelled without the agreement of all parties, providing additional security for the beneficiary.

Suggested Sections

1. Letter of Credit Number: Unique identification number of the L/C

2. Date of Issue: Date when the L/C is issued

3. Applicant Details: Full name, address and contact details of the party requesting the L/C (typically the buyer)

4. Beneficiary Details: Full name, address and contact details of the party in whose favor the L/C is issued (typically the seller)

5. Issuing Bank Details: Name, address and contact details of the bank issuing the L/C

6. Amount and Currency: The credit amount and currency, stated in both figures and words

7. Expiry Date: Date and place of expiry of the L/C

8. Presentation Period: Time period within which documents must be presented

9. Required Documents: Detailed list of documents required for presentation

10. Shipment Terms: Details of shipment including latest shipment date, partial shipments, transhipment

11. Payment Terms: Specifications of when and how payment will be made

12. Governing Law: Statement that the L/C is governed by Hong Kong law and UCP 600

Optional Sections

1. Advising Bank Details: Details of the bank advising the L/C to the beneficiary, used when there's an intermediary bank

2. Confirming Bank Details: Details of the bank adding its confirmation to the L/C, used when additional bank security is required

3. Transferability Clause: Clause indicating if the L/C can be transferred to another beneficiary, included when the L/C needs to be transferable

4. Red Clause: Special clause allowing for advance payment to the beneficiary, used in specific trading arrangements

5. Green Clause: Clause allowing for advance payment against warehouse receipts, used in commodity trading

6. Back-to-Back Provisions: Provisions for back-to-back L/C arrangements, used in intermediary trade situations

Suggested Schedules

1. Schedule of Documents: Detailed specifications for each required document including format, content, and number of copies

2. Schedule of Goods: Detailed description of the goods being traded including specifications, quantity, and unit price

3. Schedule of Bank Charges: Breakdown of all applicable bank charges and who is responsible for paying them

4. Template Forms: Standard forms for various required documents such as bills of lading, commercial invoices, etc.

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

International Trade

Banking & Finance

Import/Export

Shipping & Logistics

Manufacturing

Commodities Trading

Retail

Wholesale

Agriculture

Energy

Mining

Textiles

Relevant Teams

Trade Finance

International Banking

Legal

Compliance

Risk Management

Treasury

Operations

Commercial Banking

Documentary Credits

Trade Operations

Relevant Roles

Trade Finance Manager

International Trade Specialist

Documentary Credits Officer

Import/Export Manager

Banking Operations Manager

Compliance Officer

Legal Counsel

Treasury Manager

Credit Risk Officer

Commercial Banking Manager

Trade Operations Specialist

Letters of Credit Specialist

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