The International Letter of Credit is a fundamental instrument in international trade finance, providing a secure payment mechanism for cross-border transactions. When governed by Hong Kong law, it operates within one of Asia's premier financial and trading hubs, benefiting from a well-established legal system based on English common law principles. This document is typically used when parties in different countries require a secure payment method, with the letter of credit serving as a bank's irrevocable commitment to pay the beneficiary upon compliant document presentation. The document includes detailed specifications of payment terms, document requirements, shipping conditions, and timeframes, all structured under UCP 600 guidelines and Hong Kong banking regulations. It's particularly valuable when parties have limited trading history or when the transaction value is significant, offering protection to both buyers and sellers in international commerce.

1. Letter Reference Number: Unique identification number of the Letter of Credit

2. Date of Issue: Date when the Letter of Credit is issued

3. Type of Credit: Specification of whether it's irrevocable, transferable, etc.

4. Issuing Bank Details: Complete name and address of the issuing bank

5. Applicant Details: Full name and address of the party requesting the Letter of Credit

6. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued

7. Currency and Amount: Specified currency and amount of the Letter of Credit, both in figures and words

8. Expiry Date and Place: Clear statement of expiration date and location where documents must be presented

9. Available With/By: Specification of how the credit is available (by sight, deferred payment, acceptance, or negotiation)

10. Partial Shipments/Transhipment: Whether partial shipments or transhipment are allowed or prohibited

11. Required Documents: Detailed list of all required documents for presentation

12. Shipment Terms: Latest shipment date, port of loading, port of discharge, and destination

13. Description of Goods/Services: Precise description of the goods or services covered by the Letter of Credit

14. Special Conditions: Any additional terms, conditions, or instructions specific to this Letter of Credit