We buy from suplier and resell to end client under a transferable LC.
A- The below points are to change on LC:
1- Period of presentation of documents
2- LC expery date
Please advice how to change them, especially our bank is in Malta, suplier in Thailand and issuing bank in south africa confirmed by USA bank.How to manage the time between all those destination.
B- Can we receive LC indicating CNF and we transfert LC doing change into CIF.( means we buy CIF and we resell CNF)
C- Certificat of origin, phytosanitary certificat, Inspection quantity/quanlity: all those documents will be issued by an independent survey agency instead of Local chamber of commerce. This can be considered as discrepency?
Transfer LC
Under B: The transferring bank would be acting outside its mandate, and lose all protection under UCP. Whilst perfectly acceptable under a back-to-back LC transaction, it is most definitely not, under a transfer LC.
The transferee has the right to get paid under the LC in his own right, even if (for whatever reason) the trasnferor either fails to substitute his own invoices, or perhaps goes into liquidation, etc. In such a case, if the transferring bank has inserted or deleted conditions, the transferee's presentation will not be compliant and it is likely that the transferee will sue or seek financial recourse from the transferring bank.
I am however curious as to why you would wish to contract on CIF terms with your supplier and on CFR terms with your buyer, instead of the other way around. What carriage points is the insurance policy to cover, if not to the final buyer's destination? If so, why would you wish to quote a lower price on CFR basis to your buyer?
Change CIF to CFR
It was jsut a question if UCP rules admits such changes, since when I buy CIF im totally covered by Insurance 110percent, and if I resell Cif the buyer will now exactly how much my profit.
That is why I was thinking to sell CFR( but in reality insurance is covered)
Transfert of Lc
Yes you can change the LC expiry date and latest day for presentation.
Docs issued by independent surveyor means any party can issue those certificates except beneficiary.
Regards!!!!
Mujeeb :-)
Change on Lc
Can we change CIF to CNF in a transferable LC?
We receive LC transferable with CIF terms and we need to transfert it but change CNF terms, is it possible?
If I were you I would not
Your transaction is complicated enough already. Adding more complexity give no party a benefit. If I were you I would have tried to complete the process as simple as possible.
International letter of credit consultancy services.
I agree with you.
I agree with you.