Best Trade Solution

Dear All,
I appreciate your support in answering the following question related to Transferable LC.

I have a transferable LC with the following documents requirement.
+04)INSPECTION CERTIFICATE ISSUED BY THE BENEF. STATING THAT THE COMMODITIES HAVE BEEN PASSED THE TECHNICAL INSPECTION TESTS BEFORE SHIPPING.
+05)GUARANTEE CERTIFICATE ISSUED BY THE BENEF. VALIED FOR 6 MONTHES FROM THE LAST DATE OF SHIPMENT AND STATING THAT THE DEFECTIVE COMMODOTIES DUE TO BAD WORKMANSHIP OR FAULTY MATERIALS WILL BE REPAIRED OR REPLACED OR FREE OF CHARGE UP TO THE SITE OF WORK IN THE APPLICANT FACILITY.

Is transferring the 2nd benefiniciary documents directly to the issuing bank, without substitution, considered a discrepancy? Or they must be submititude by the 1st beneficiary's corresponding documents?

For this LC, the 1st beneficiary will substitute the commercial invoice and back list, should I submititute the above mentioned 2 documents as well?

Thanks,
Fathy

Hi Pal,

without substitution, invoice is direct from 2nd beneficiary to applicant, so the 2nd beneficiary is
contractually liable towards the applicant for goods remedy.

with substitution the first beneficiary is bearing contractual obligation, even if he may ask 2nd beneficiary to repair the goods, under a separate contract.

Other comments appreciated

Ciao