Document background
The Irrevocable Transferable LC is a crucial document in international trade finance, particularly relevant under Saudi Arabian jurisdiction where it must comply with both Sharia principles and international banking standards. This document type is typically used when the original beneficiary acts as a middleman or trader and needs the ability to transfer the credit to actual suppliers or manufacturers. The irrevocable nature means that once issued, the terms cannot be modified or cancelled without the agreement of all parties involved. The document includes detailed specifications about the underlying trade transaction, payment terms, document requirements, and transfer conditions. It's particularly important in Saudi Arabia's context, where it must align with SAMA regulations while facilitating international trade operations. The transferable feature makes it especially valuable in complex trading arrangements involving multiple parties across different countries.
