Differrent confirming and transferring banks?

[Gart]

Dear all,

Our customer is going to act as intermediary in cars import transaction and the means of payment is transferable confirmed L/C. As we are not in position to add our confirmation to L/C, it will go like this: Bank A - issuing bank, Bank B - confirming / transferring bank, Bank C - advising bank (our bank / first beneficiary's bank), Bank D - 2nd beneficiary's bank. L/C is available with the bank B (confirming bank) by payment at sight. The problem here lies that we would like to act as transferring bank i/o Bank B (confirming bank) here. Do you see here a possibility for bank C (first beneficiary's bank) to act as a transferring bank: this action may be allowed by issuing bank, e.g. 'first beneficiary's (advising) bank is authorized to transfer this L/C'? Your comments would be highly appreciated.

Best regards,
Gart

[Judith]

Hello Gart,

You are right.
This can work provided Bank B is comfortable with the transaction.

Bank A = Issuing Bank
Bank B = First Advising Bank / Confirmation Bank
Bank C = Second Advising Bank / Nominated Bank / Transferring Bank
Bank D = Second Beneficiary’s Bank

Hope this helps.

[iLC]

i agree. its possible. however the transaction needs to be designed very wisely especially when the LC calls for advise of transfer. and by doing this transaction you are inevitably adding one more stage in the document presentation process. the applicant may not like this idea as that will cause a delay in receiving the document.