Document background
The At Sight LC is a fundamental trade finance instrument used in international commerce where immediate payment is required upon document presentation. This document type is particularly relevant in New Zealand's import/export environment, where businesses need secure payment mechanisms for international trade. The At Sight LC provides assurance to sellers of receiving payment once compliant documents are presented, while giving buyers confidence that payment will only be made when specified conditions are met. The document must comply with New Zealand banking regulations and typically incorporates UCP 600 rules, making it a standardized yet flexible instrument that can be adapted to various trade scenarios. It includes detailed specifications of required documents, payment terms, and conditions, serving as a crucial tool in facilitating international trade while minimizing risks for all parties involved.
