AboutDavide Andrew Papa Expertise All matters pertaining to assisting Private import export INTERMEDIARIES, AGENTS and BROKERS Regarding International trade Laws and procedures,Letters of credits, as per UCP 600,Presentation, Commissions,International Rules of agency, and Incoterms 2000. All matters pertaining to shipping documents relating to the Import and export of products from one country to another.All matter for buyers and sellers of commodity products relating to the import and export industry.FTN with the introduction of UCP 600 will release the publication "The world is yours"(2004) made specifically for Intermediaries.Current inhouse tra ining manual is "Follow the Yellow Brick Road"(2008) Our advice website is www.ftnexporting.com
Experience FTN exporting founder Davide Papa has been trading for over 20 years- and has dealt with a huge variety of corporate entities including Gold and crude oil suppliers. FTN appeared in a major controversial Newspaper editorial in 1994. FTN Exporting official publication "International Trade and the Successful Intermediary"(ITSI) is about to be released world wide (December 2009) by the prestigious U.K publishing firm Gower's (U.K) and is listed on Amazon.com (Keyword: International Trade Intermediary) ITSI is ostensibly the first uniform intermediary trading doctrine of its kind, and will become the standard intermediary practice world wide in years to come. FTN exporting has created the said doctrine and supporting rules of trade defined as "URPIB" (Uniform Rules and Practice for Intermediaries and Brokers), which will (has?) become the most successful set of private intermediary rules ever created.
Publications The World is Yours and "Follow the Yellow Brick Road" www.ftnexporting.com . Author of "International Trade and the Successful Intermediary " (ITSI) 2009 excepts on http://www.gowerpub.com/default.aspx?page=637&calcTitle=1&title_id=11177&edition_id=12138
Education/Credentials Let school early. Became a master chef . Took up business management and later studied "international Trade at Stott's college Melbourne, Australia.
Question good day,my quetion is ,in transferable L/C who has the right to add his confirmation and is it possible for transferring bank to add his confirmation and ask the 2nd beneficiary's bank to add his confirmation too?
second,is it possible to transfer the dc to two banks i mean to separate the original dc amount to two smaller amounts?
Answer
Dear Silwan
The "end buyer" Issues a UCP600 DLC to the intermediary, defined as the "Seller" - The seller then becomes the buyer to it's supplier- The term beneficiary is the terms applied by banks - and is an ambiguous term for intermediaries to ply-
End Buyer is Person taking possession and title of goods- The intermediary is a seller to the end buyer, a buyer to the supplier- an Intermediary cannot obtain possession of goods only "title" of such- The Supplier is the person who owns the possession and title to goods being offered for sale-
A "beneficiary" if defined correctly then its the "supplier" who benefits first and then intermediary second but only if it's done it s job correctly, otherwise it will gain nothing-? A person who derives adavantage of something defines correctly the term "beneficiary"
Your question is also not clear- Because a transferable credit Can only be transferred once- A ISBP98 SLC can be transferred many times but such should not be used to Buy and sell goods-
The Issuing bank issues the transferable DLC with or with confirmation of a nominated bank or confirmation of the sellers own "advising Bank" at the Buyer expense- Confirmation of a DLC issued from large world ranked "safe" bank is not really necessary and usally is sought when a smaller unranked bank is involved.
Section of your your question sound like a "back to back " DLC application again which cannot be applied-
The seller has to ask for a confirmed credit - The nominated bank is chosen to confirm the credit or the corresponding bank of the seller could be used.
A seller could also ask for his credit to be confirmed in such a case the charges are for the seller-(very expensive)
If the confirmation is applied by the issuing bank in where the corresponding bank is that of the "seller' , then the seller can use the Confirmed instrument to initate Collection without the need for clean delivery document having to be "accepted' or presented to the issuing bank - the confirming bank will "honour "the payment and allow collection to apply at a discount -
Thus end buyer issues a TCIDLC to the intermediary seller- the seller can only transfer the PORTION of the credit to buy the goods from the SUPPLIER- it cannot be transfered to another intermediary seller come buyer-
If allowed Portion of the credit can also be advised. If not allowed it still can be used to issue two inhouse DLC in where the accpeting bank authenticates such to the intermediary bank.
THe transferable portion of the credit cannot be transfered until the seller pays for transfer fees first( Very expensive for large credits) therefore the seller should take advantage of Article 38 UCP600 - in that "transferring " fee are and expense of the "beneficiary" unless AGREED upon differently-
So the seller makes a deal with the end buyer on contract and AGREE that the "transfer" fee is made for the account of the end buyer-
Hope it helps
Regards
Davide G.A Papa
Author : "International Trade and the Succesful Intermediary"
www.ftnexporting.com
www.ftnx.net
