Authority to use Domestic Letter of Credit. - All national government agencies (NGA) and government owned and/or controlled corporations (GOCC) are hereby authorized to use domestic letter of credit (DL/C) to pay for purchases from local suppliers through authorized government servicing banks (AGSB) under the terms and conditions specified hereunder. > Coverage. - This Act shall be applicable only for the procurement of supplies, materials and equipments. There is need to level the playing field between local and foreign companies that supplies the government. Authorizing the government to use domestic letter of credit to pay purchases from local suppliers enhances competition not only among themselves, but also between local and foreign ssuppliers. Fair competition stimulates domestic business, increases tax revenues and expands employment opportunities.