Document background
The Revolving Letter of Credit is essential for businesses engaged in recurring international trade transactions, particularly those requiring regular shipments or ongoing supply arrangements. This document type is specifically designed for situations where parties anticipate multiple transactions over a period, eliminating the need for separate letter of credit issuance for each transaction. Operating under Belgian law, it incorporates both domestic banking regulations and international trade practices, particularly the UCP 600 guidelines. The document typically includes detailed provisions for credit reinstatement, documentation requirements, and compliance with Belgian banking regulations and EU directives. It's particularly valuable for importers and exporters engaged in regular trade cycles, offering efficiency in both cost and processing time compared to multiple standalone letters of credit.
