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An Advance Letter of Credit is a specialized financial instrument used in international trade transactions where the seller (beneficiary) requires partial or full payment in advance of shipping goods. This document type is particularly relevant when dealing with new trading relationships, high-value transactions, or markets with significant commercial risks. Under Belgian law, these instruments must comply with both local banking regulations and international standards such as the UCP 600. The document typically includes detailed provisions for advance payment mechanisms, conditions for drawing the credit, document requirements, and payment terms. It provides security to both parties: the buyer ensures goods will be shipped as specified, while the seller receives guaranteed advance payment from a reliable banking institution. The Belgian jurisdiction offers a robust legal framework for such instruments, combining civil law traditions with modern international banking practices.

1. Bank Details and Reference: Issuing bank's details, letter reference number, and date

2. Beneficiary Information: Complete name and address of the credit beneficiary

3. Applicant Information: Complete name and address of the party requesting the letter of credit

4. Credit Amount and Currency: Specification of the credit amount, currency, and any tolerance levels

5. Credit Type and Availability: Details of how and where the credit is available (sight, deferred payment, etc.)

6. Expiry Date and Place: Clear statement of expiry date and location for document presentation

7. Required Documents: Detailed list of documents required for credit utilization

8. Shipment Terms: Details of shipment, latest shipment date, and partial shipments if applicable

9. Governing Law and Rules: Reference to Belgian law and UCP 600 application

10. Bank Authorization: Authorized signatures and bank stamps