A transferable LC must be so designated and allows the beneficiary to request that it be transferred in whole or in part to second beneficiary or beneficiaries. Transferees may not subsequently transfer them to other parties.
A request for a transfer by a beneficiary of a transferable LC should be carefully considered, taking into account the beneficiary and second beneficiary's standing and ability to perform the shipment and the terms of transfer. A transfer allows the beneficiary who does not supply the merchandise but acts as a middleman to transfer all of his rights and obligations to a second beneficiary who actually supplies the goods.
Important Notice: UCP 600
For Export Letter of Credit, the handling will be subject to the version of the UCP which is stated in the Export Letter of Credit.
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