Name of applicant in Transferred credit

[dinesh2476]

Hi experts,

We request your support

Article 38

a . The name of the first beneficiary may be substituted for that of the applicant in the credit.

b. If the name of the applicant is specifically required by the credit to appear in any document other than the invoice, such requirement must be reflected in the transferred credit.

From paragraph a, we can understand that UCP allows field 50 in the transferred letter of credit can be that of 1st beneficiary. So when 2nd beneficiary makes a presentation say an invoice, the name of the applicant would reflect that of 1st beneficiary(which would be replaced with that of 1st beneficiary later), other than the invoice, no shipping documents can be expected to show the name of the applicant

However, the paragraph refers applicant name to be quoted in all documents, if the same condition is forwarded in transferred credit then all documents will have to show the applicant name of the original LC(1st beneficiary may not wish to reveal the name of the applicant) or name of the 1st beneficiary credit(it creates discrepant as the applicant is not the expectation of the issuing bank)

How to deal with this situation and is there any specific reason for highlighting this condition alone in UCP when there is so many other issues with regard to handling transfer LC

Thanks & Regards
Dinesh Kumar

[picant]

Hi Dinesh,

in transferring the documentary credit we have wth or without substitution(of documents) in the second one the first beneficiary will result not involved anymore and the second beneficiary will invoice the applicant directly, preparing documents accordingly.
In the first case the second benefiaciry will no result on documents, the first beneficiary will deal with applicant and consequently all details hidden.This first case is very difficult in handling.
Comments appreciated
Ciao