Letters of credit, also known as LCs, are controlled by the Uniform Customs and Practice for Documentary Credits (UCP 600), that is a document published by the International Chamber of Commerce. This document outlines the rules and processes for issuing, advising on, and revising LCs. These standards are meant to guarantee that LCs are safe, open about their operations, and simple to make use of.
The legislation around supply chain financing (SCF), which is a relatively new industry, is still in its infancy. In general, the rules governing SCF put an emphasis on safeguarding the interests of all parties engaged in the transaction, as well as ensuring that the financing process is both transparent and secure.
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