Hello,
We are expecting to receive a transferable documentary letter of credit from our buyer. The case is that our supplier only provides on FOB basis where as our buyer is looking for CIF. So, in order to facilitate this deal we advised our buyer to issue a transferable documentary letter of credit.
Now, we need to know if is it possible to split the DLC into 2 & transfer one portion to our supplier and other portion to the shipping company & leaving rest in our bank account as our margin?
Also, there is a any special instrument that has to be there as a part of DLC verbiage to make this happen. As far as we know that field 40A "Form of Documentary Credit" should mention Irrevocable and transferable. Does that allows the us being the first beneficiary to dvivide/split the DLC into portions further transfer it?
Regards,
Mohammad Imran Shamsi
Transferable LC: Supplier Sales On FOB & Buyer Pefers On CIF
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- picant
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Transferable
Hi Pal,
pay attention to description of goods as, normally, it is not possible to transfer amounts in order to pay goods and services.
I think you have to speak with your bank to word such type of l/c.
Let us know!
Ciao
pay attention to description of goods as, normally, it is not possible to transfer amounts in order to pay goods and services.
I think you have to speak with your bank to word such type of l/c.
Let us know!
Ciao
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Confused!!
Hi Buddy,picant wrote:Hi Pal,
pay attention to description of goods as, normally, it is not possible to transfer amounts in order to pay goods and services.
I think you have to speak with your bank to word such type of l/c.
Let us know!
Ciao
Thanks for your answer however, I am little confused here. If I am correct as per UCP 600 regulations there is no term as divisible DLC. However, if a beneficiary/receiver receives an Irrevocable and Transferable DLC, then I believe it can be further be transferred as in full or partially to one or more second beneficiaries.
In this case I am not the actual supplier. I am just the charter of the goods & producer is my supplier. I don't want my buyer to directly reach my supplier. Simple! Please advise.
Regards,
Mohammad Imran
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Transferable LC
Dear member
Transferable LC allow to curtail amounts dates , insurance coverage . All other terms need to exactly as the master LC . If you still want to be in control of the shipment you will have to apply for an LC to your supplier independent of the transferable LC .
Transferable LC allow to curtail amounts dates , insurance coverage . All other terms need to exactly as the master LC . If you still want to be in control of the shipment you will have to apply for an LC to your supplier independent of the transferable LC .