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URGENT, HELP, TRANSFER LC

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Mon, 05/17/2010 - 19:47
sandycyy2010
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Joined: 05/14/2010
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Kindy HELP MY QUERIES 

Our Buyer in Vietnam (applicant)
We receive LC from buyer mentioned LC could be transferable.
Our factory in China, thus we want transfer this LC to our factory.

1. First, do we need to have any credit line available with our business banker in HK if issue transfer LC?

2. If the customer LC request type of document listed four kinds document. Can I apply the transfer LC request invoice, packing list only to our factory

3. Can I request the transfer LC indicate as below?


a. the delivery terms, MASTER LC: CIF HCMC, this TRANSFER LC FOB SHANGHAI
b. latest ship date/ expiry date : indicate the date earlier than master LC

c. presentation date. : MASTER LC say 21 days, this transfer LC 15 days.

Looking forward to hearing from u soon

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Wed, 05/19/2010 - 00:54
#1
avesh sharma
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Joined: 05/19/2010
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Hi-

If master l/c states below clause

'' THIRD PARTY DOCUMENTS ALLOWED EXCEPT DRAFTS AND INVOICE''

Can we remove the same while effecting transfer to 2nd beneficiary?  If not does it effect the need of 1st beneficiary? 

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Wed, 05/19/2010 - 02:09
#2
Abrar
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third party documents

Actually, the clause as written does not add to , or detract from UCP provisions, but on the basis that the transferred LC must be transferred on the same terms and conditions as the incoming LC, the clause should properly also appear on the transferred LC.

The clause will not affect either the transferee's or the transferor's ability to perform under the LC.

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Tue, 05/18/2010 - 03:08
#3
Damiano
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Docs of Transferable LC

Concerning docs to be presented in a Transferable LC, these must be presented by the second beneficiary (the actor to whom the credit has been transferred). As per art. 38-h of UCP600, the only documents that can be changed are the Invoice and the eventual Draft.

 

Damiano

Padua, Italy

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Tue, 05/18/2010 - 01:59
#4
Abrar
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Transferable LC

1. No. The bank undertakes no engagement (unless confirmed)

2. No. It must be transferred under the same conditions as the LC, and calling for the same documents, no more and no less. 

3. a. No. See 2 above.

3. b. Yes

3. c. yes    

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Tue, 05/18/2010 - 19:52
#5
sandycyy2010
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Transferable LC

Well noted.  Thank you so much to Damiano and Abrar.

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