I have exported some material to Port Sudan. The original L/c was opened by Sudan party.There was a mediater party from Dubai.The L/c was tranferrable, wherein first beneficiary was dubai party say A. and second benefciary was ourselves say B.

Now, they say that they need the B/L in which the shipper must be A (dubai party). All invoices & packing list will remain original where shipper is ourselves (B). They do not want switch B/L.

Now if i make the B/L (having shipper as A) then  how can we negotiate these documents with our bank.? our bank says that they can release the payment to ourselves only if we will be the shipper on B/L.

 the dubai party wants us to submit the invoices (wherein we are shipper) along with the B/L (wherein party A is shipper)

please let me know what should i do. since i m going to have a very good business with this party in near future, i want to settle this querry as per their convinience.

Quoting from [amitsharma]:

I have exported some material to Port Sudan. The original L/c was opened by Sudan party.There was a mediater party from Dubai.The L/c was tranferrable, wherein first beneficiary was dubai party say A. and second benefciary was ourselves say B.

Now, they say that they need the B/L in which the shipper must be A (dubai party). All invoices & packing list will remain original where shipper is ourselves (B). They do not want switch B/L.

Now if i make the B/L (having shipper as A) then  how can we negotiate these documents with our bank.? our bank says that they can release the payment to ourselves only if we will be the shipper on B/L.

 the dubai party wants us to submit the invoices (wherein we are shipper) along with the B/L (wherein party A is shipper) 

please let me know what should i do. since i m going to have a very good business with this party in near future, i want to settle this querry as per their convinience.

 

It is my experience that party A has but one choice only as the first beneficiary of a transferable credit. 

That is to utilize the traders second set (Switch B/L) and also all documents and drafts changed to their name for payment by the transfering bank.  The switch B/L ,drafts and documents are then converted to conform with the master L/C to the negotiating or issuing bank for review and payment.

To do otherwise would leave you open to never if ever getting paid for the products you shipped.

It really has alot to do with the wording in the document of the transfered credit to you how you must comply in the negotiation.  If your bank says that you cant get paid in this manner because of a problem in negotiating the draft and the documents I would heed their advice as transferable credits can vary from country to country in how they are handled and acted upon while still falling under the scope of UCP600.

I hope I have not confused you further.  It may be best to contact the transfering bank directly.  Also if this was something that A did not indicate initially, I would take a pass on it as it undoubtedly has left you with very little time to research the direct vulnerability to you business being paid off. 

This is also why it is inheritently necessary for the two parties to discuss all characteristics of a credit before it is even opened.  Depending on the expiry date you may now be pressed for time.

A second thought, it does appear that the first beneficiary is not trying to hide the fact that you are the actual supplier.  In this case an Order B/L may have been stipulated in the transfered L/C to you.  I suggest you revisit the terms of the credit to see if this is the case.

Best regards,

Ranger