Transferable credits- doc. exam'n comm'n split

[NigelHolt]

In your experience where under a transferable credit:
1. all charges & commission -with the exception of the issuing bank’s- are for the beneficiary’s account,
2. the credit is transferred, and:
3. the first beneficiary does not waive their 38(h) substitution rights,
does the first beneficiary normally opt to pay the documents examination commission in its entirety, i.e. for the full amount of its substituted invoice, or does it specify that the documents examination commission is to be split between the first and second beneficiaries in proportion to the amount drawn by the second beneficiary and the net amount (invoice difference) drawn by the first beneficiary (or is it ‘50/50’)?

Grateful if you will please kindly let me know.

[AsifMahmoodButt]

Jeremy,
In my experience this is normally proportionate to the respective invoices (in the case of first bene the invoice difference), very rarely I have seen this being shared 50/50
Regards, Khalid

[NigelHolt]

Khalid,

Thanks for your reply; it's appreciated.

Sorry, I have not expressed myself clearly. When I say '50/50' I mean half of 1st benef's opt to pay all the doc. exam'n comm'n and half of all 1st benef's opt to share it proportionately etc.

Regards, Jeremy

[DanielD]

Jeremy,
Here, normally, we will charge the first beneficiary enterely and based on the full amount of his invoice. By doing otherwise, somehow, the second beneficiary could deduct the profit margin of the first beneficiary. It happened once and we could have been in deep trouble.
Daniel

[NigelHolt]

Thanks Daniel.