Guide · Payment
DLC vs SBLC: How to Pay for Sugar Imports
DLC — Documentary Letter of Credit
A DLC is a payment mechanism. The buyer's bank commits to pay the seller a defined amount once the seller presents documents that comply exactly with the credit — typically the bill of lading, commercial invoice, certificate of origin, SGS/Intertek inspection and health/phytosanitary certificates. The bank, not the buyer, controls the release, which protects both sides.
SBLC — Standby Letter of Credit
An SBLC is a guarantee, not the primary payment. It sits in the background and is only drawn if the buyer fails to pay by the agreed method. It's often used to secure a contract or a payment obligation rather than to settle each shipment.
Which one for a sugar deal?
Most physical sugar transactions settle on a DLC — it's built for shipment-against-documents. An SBLC is used where the parties want a guarantee structure. Either way, the instrument should be issued or confirmed by a first-tier bank and, for L/Cs, governed by UCP 600 — the ICC rules that standardise letters of credit worldwide.
Request a quotation
Duna Trading sources Brazilian ICUMSA 45 and VHP sugar and ships worldwide under Incoterms 2020, with DLC/SBLC payment (UCP 600) and SGS/Intertek inspection at loading. Tell us your grade, quantity and destination port and the São Paulo desk reverts with a quotation.