We can define an irrevocable letter of credit (ILOC) as a type of documentary credit which cannot be cancelled or amended by the issuing bank without the agreement of the parties of the letter of credit.
A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if a presentation is complying.
Every letter of credit that is requesting presentation of a transport document such as a bill of lading, air waybill, road consignment note, rail transport document etc. must indicate whether partial shipments are allowed or not allowed.
Partial shipment and partial drawing terms are usually used with the same meaning in export and import transactions. But this is not necessarily the case in most instances especially in standby letters of credit and bank guarantees.
If the word “clean” appears on a bill of lading and has been deleted, the bill of lading will not be deemed to be claused or unclean unless it specifically bears a clause or notation declaring that the goods or packaging are defective.