Document background
The Advised Letter of Credit is a fundamental instrument in international trade finance, used when parties seek a secure method of payment in cross-border transactions under Belgian jurisdiction. It represents a bank's notification to a beneficiary about the issuance of a Letter of Credit in their favor, without adding its own undertaking to honor or negotiate the credit. This document type is particularly crucial when dealing with Belgian companies or when parties choose Belgian law as the governing law, as it incorporates both the internationally recognized UCP 600 rules and specific Belgian banking and commercial law requirements. The document includes detailed specifications about payment conditions, required documentation, timelines, and compliance requirements, serving as a vital tool for risk mitigation in international trade while ensuring compliance with Belgian financial regulations and EU directives.
