Letter of credit in international trade law
of independent guarantees and standby letters of credit, in particular where only one or the other of those Commission On International Trade Law and characteristics shared by the independent guarantee and the standby letter of credit. What is an Export Letter of Credit? Exporters face the greatest risk in international trade unless they can secure payment in advance of shipping their goods. What are letters of credit in international trade? A contract between an importer and an exporter may call for payment under a letter of credit, often abbreviated as L/C or LC. A letter of credit is a written commitment by a bank to make payment at sight of a defined amount of money to a beneficiary (exporter) according to the terms and conditions specified by the importer (applicant).