The domestic L/C refers to a kind of LC with which the L/C-opening bank, at the request of the customer, 

issues the LC commitment to the seller and pay to the seller upon receipt of documents that comply with 

domestic provisions on L/C in domestic trade.

 

This flag indicates if the L/C is a domestic L/C or not. If the risk country of L/C and the beneficiary's country are same, it is termed as a domestic L/C.