Document background
The Import LC (Letter of Credit) is a fundamental trade finance instrument used in New Zealand for securing international trade transactions. This document is typically employed when a New Zealand-based company needs to import goods from overseas suppliers and wants to establish a secure payment mechanism. The Import LC, governed by New Zealand law and international banking practices (UCP 600), serves as a bank's guarantee to pay the overseas seller, provided that all specified documents are presented in compliance with the LC terms. It is particularly important in situations where parties lack an established trading relationship or when significant transaction values are involved. The document includes critical details such as payment terms, shipping requirements, document specifications, and compliance conditions, all structured to protect both the importer's and exporter's interests while ensuring smooth international trade operations.
