New Regulation on the Mandatory Use of L/C for Exports of Mining and Energy Products

The Minister of Trade (“ Minister ”) has issued Regulation on Provisions on the Use of Letters of Credit for Exports of Certain Commodities (“ Regulation 94/2018 ”) in a bid to stabilize export-price increases for certain natural resource products within the international market. [1] In essence, Regulation 94/2018 affirms that possession of a Letter of Credit (“ L/C ”) is a mandatory payment instrument for the export of the following natural-resource products (collectively referred to as “ Commodities ”): [2]