Confirmed Irrevocable Letter Of Credit for Qatar

Confirmed Irrevocable Letter Of Credit Template for Qatar

A Confirmed Irrevocable Letter of Credit under Qatar law is a sophisticated banking instrument that provides a secure method of payment in international trade transactions. It represents an irrevocable undertaking by both the issuing bank and a second bank (the confirming bank) to pay the beneficiary when compliant documents are presented. The document is governed by Qatar's Commercial Law No. 27 of 2006 and banking regulations, while also incorporating UCP 600 rules. It includes detailed terms regarding payment conditions, document requirements, and specific obligations of all parties involved, providing maximum security for international trade transactions.

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What is a Confirmed Irrevocable Letter Of Credit?

The Confirmed Irrevocable Letter of Credit is a crucial document in international trade finance, particularly important in the Qatar market where cross-border transactions require robust payment security. This document type is used when the beneficiary (typically the seller) requires additional payment security beyond the issuing bank's undertaking, usually due to unfamiliarity with the issuing bank or concerns about the banking system in the issuing bank's country. It provides enhanced security as both the issuing and confirming banks are independently obligated to pay upon compliant document presentation. The document must comply with Qatar's banking regulations and commercial laws while incorporating international standards through UCP 600, making it a sophisticated instrument that bridges local and international legal requirements.

What sections should be included in a Confirmed Irrevocable Letter Of Credit?

1. Letter of Credit Number and Date: Unique identification number and issuance date of the LC

2. Issuing Bank Details: Complete name, address, and SWIFT code of the issuing bank

3. Confirming Bank Details: Complete name, address, and SWIFT code of the confirming bank

4. Applicant Details: Full name, address, and contact information of the buyer/applicant

5. Beneficiary Details: Full name, address, and contact information of the seller/beneficiary

6. Currency and Amount: Currency code and amount of the letter of credit in numbers and words

7. Expiry Date and Place: Clear statement of expiration date and location for document presentation

8. Available With/By: Specification of where and how the credit is available (payment, acceptance, negotiation)

9. Partial Shipments/Transhipment: Clear statement whether partial shipments and transhipment are allowed or prohibited

10. Loading/Dispatch/Taking in Charge: Shipping details including port of loading and destination

11. Document Presentation Period: Timeframe within which documents must be presented after shipment

12. Required Documents: Detailed list of all required shipping and commercial documents

13. Additional Conditions: Any special conditions or terms specific to this letter of credit

14. Charges: Specification of which party bears various banking charges

What sections are optional to include in a Confirmed Irrevocable Letter Of Credit?

1. Insurance Coverage: Used when insurance requirements exceed standard coverage or when specific insurance terms need to be detailed

2. Transferability Clause: Include when the letter of credit needs to be transferable to a second beneficiary

3. Back-to-Back Provisions: Used when the LC may be used as collateral for issuing another LC

4. Red Clause: Include when advance payment to the beneficiary is to be allowed

5. Green Clause: Used when storage of goods at destination is required prior to document presentation

6. Revolving Credit Terms: Include when the LC is intended to automatically renew under specified conditions

7. Tolerance Provisions: Used when specific quantity or amount tolerances need to be detailed beyond standard provisions

What schedules should be included in a Confirmed Irrevocable Letter Of Credit?

1. Schedule A - Document Requirements: Detailed specifications for each required document including format and content requirements

2. Schedule B - Goods Description: Detailed technical specifications of the goods being traded

3. Schedule C - Payment Terms: Detailed breakdown of payment arrangements including any special conditions

4. Appendix 1 - Draft Format: Prescribed format for any drafts to be drawn under the LC

5. Appendix 2 - Document Presentation Checklist: Checklist for beneficiary to ensure complete document presentation

6. Appendix 3 - Bank Forms: Standard forms required by the issuing/confirming banks

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Qatar

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

International Trade

Import/Export

Manufacturing

Commodities Trading

Retail

Construction

Energy & Resources

Agriculture

Automotive

Telecommunications

Shipping & Logistics

Relevant Teams

Trade Finance

International Banking

Documentary Credits

Corporate Banking

Risk Management

Compliance

Legal

Treasury

Operations

Credit Analysis

Relevant Roles

Trade Finance Manager

International Banking Officer

Letter of Credit Specialist

Documentary Credits Manager

Export Finance Manager

Import Finance Manager

Compliance Officer

Treasury Manager

Chief Financial Officer

Banking Operations Manager

Trade Operations Supervisor

Risk Management Officer

Corporate Banking Manager

International Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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