United Kingdom Letter of Credit Transactions

What are the key points of consideration as an exporter when working with a letter of credit which is issued in United Kingdom or as an importer when issuing a letter of credit for a United Kingdom exporter?

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You should understand United Kingdom economy, United Kingdom exports and imports as well as United Kingdom banks before you proceed to work with a letter of credit which is issued in United Kingdom.

Economy of United Kingdom and International Trade at a Glance:

  • Gross domestic product of United Kingdom is $2,43 trillion US dollars in year 2012. This makes United Kingdom economy 7th largest economy in the world after USA, China, Japan, Germany, France and Brazil.
  • United Kingdom is the world’s 5th biggest importer with 642,60 billion US dollars import volume in year 2012 and 10th biggest exporter with 474,60 billion US dollars export volume in year 2012.
  • International trade has been playing a significant role on United Kingdom economy.
  • United Kingdom economy experiencing significant trade deficits for the last couple of years which means that annual United Kingdom exports are less than annual United Kingdom imports.
  • United Kingdom economy is one the leading forces of the European Union economy at the moment just after Germany and France.
  • Main export products of United Kingdom : Transport Equipment (16 percent); Chemical Products (10 percent of total exports); Machinery and Equipment (9 percent); Computer, Electronic and Optical Products (8 percent); Pharmaceutical Products (8 percent); Refined Petroleum Products (7 percent) and Basic Metals (6 percent)
  • Main import products of United Kingdom : Computer, Electronic and Optical Products (11 percent); Transports Equipment (14 percent); Chemical Products; Food and Beverages; Chemical products; Apparel, Textiles and Leather; Basics Metals and Refined Petroleum Products.
  • Biggest Export Partners of United Kingdom : United States (13 percent) and Euro Area countries with Germany, Netherlands, France, Ireland, Belgium, Italy and Spain.
  • Biggest Import Partners of United Kingdom : China (8 percent), United States (7 percent), Norway (6 percent) and European Union countries with Germany, Netherlands, France, Belgium, Italy and Ireland.

Biggest Banks in United Kingdom and their SWIFT Codes:

Bank NameAssets (Billion USD)Swift Code
Bank Name:
HSBC Bank PLC
Assets (Billion USD):
2.693,00
Swift Code:
MIDLGB22
Bank Name:
Barclays PLC
Assets (Billion USD):
2.420,00
Swift Code:
BARCGB21
Bank Name:
Royal Bank of Scotland
Assets (Billion USD):
2.131,00
Swift Code:
RBOSGB2L
Bank Name:
Lloyds Banking Group plc
Assets (Billion USD):
1.529,00
Swift Code:
LOYDGB2L
Bank Name:
Standard Chartered PLC
Assets (Billion USD):
637,00
Swift Code:
SCBLGB2L