Documentary Letters of Credit are essential instruments in international trade finance, particularly when conducting business under Indian jurisdiction. They serve as a secure payment mechanism where the issuing bank guarantees payment to the seller upon presentation of specified documents that comply with the credit terms. This document type is especially crucial in cross-border transactions where parties may not have established business relationships or where regulatory requirements necessitate formal banking channels. The Documentary Letter of Credit includes detailed specifications about the transaction, required documents, payment terms, and conditions that must be met by all parties. It operates under both Indian banking regulations (including FEMA 1999 and RBI guidelines) and international banking practices (UCP 600), providing a standardized framework that facilitates international trade while ensuring compliance with local laws. This instrument is particularly valuable in situations where sellers seek payment security and buyers need to demonstrate their creditworthiness through bank backing.

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

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

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

4. Applicant Details: Complete name and address of the party requesting the LC (usually the buyer)

5. Beneficiary Details: Complete name and address of the party in whose favor the LC is issued (usually the seller)

6. Issuing Bank Details: Name and address of the bank issuing the LC

7. Amount and Currency: The credit amount and currency specification

8. Expiry Date and Place: The date and location where the credit expires

9. Available With/By: Specifies the bank with which the credit is available and the manner of availability

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

11. Port of Loading/Discharge: Specified ports for loading and discharge of goods

12. Latest Date of Shipment: Final date by which shipment must be made

13. Description of Goods: Detailed description of the merchandise

14. Documents Required: List of documents required for presentation

15. Additional Conditions: Any special conditions or terms applicable to the LC

16. Presentation Period: Time period within which documents must be presented after shipment

17. Banking Charges: Specification of which party bears various banking charges