Introduction

Customer (transferor) receives a transferable documentary credit and upon customer request, the documentary credit is transferred by us to the second beneficiary (transferee). The transfer may be partial or for the full amount of the documentary credit.

Product features

1. The documentary credit must state that it is transferable and also nominating us as the advising bank.

2. The transferable documentary credit is suitable for customer who is acting as the middleman in a trade deal between the end-buyer and the ultimate supplier.

3. The documentary credit can only be transferred in its original terms and conditions except for amount, unit price, shipment date, presentation period and expiry date.

4. No credit facility is required for transferring a documentary credit. It is less costly to transfer a documentary credit as compared to issuing a new documentary credit.

Application Requirements

1. Customer must maintain a banking account with us.

2. Upon receipt of the second beneficiary’s documents at our counter, customer must submit their drafts and invoices to us for replacement without delay for our onward submission to the issuing bank for payment.