Additional documents under Transfearble LC

[AugustineArulnesan]

Thanks all. One thing we all agree on is that we should not transfer a credit that- in the transfer – did not specify all the documents required under the credit. I also gather that accepting documents for substitution (other than draft and invoice) from first beneficiary, which would make the presentation as complying under the original LC, is something that is not covered under UCP. It is for the bank to decide if it would allow it or not. Some banks use the transfer clause to achieve “back-to back LC” results, a term which is not defined in UCP but viewed differently by some banks and leveraged by traders or trading companies.

Regards

Rajan