Export Services

Transferable Letter of Credit

Purchase goods quickly and easily by transferring your export Letter of Credit

Secure the purchase of goods if you are acting as the middleman in a trade transaction. Instead of issuing a Letter of Credit to purchase goods that can then be sold against an Export Letter of Credit, DBS can help make the process simpler and quicker. We transfer your received Export Letter of Credit to your ultimate seller by issuing a Transferred Letter of Credit. You can easily enjoy this service without utilising a credit facility or cash deposit.

 

Why choose DBS Transferable Letter of Credit?

  • Grow your business with the Best Trade Finance Bank in Singapore, as named by Alpha Southeast Asia and The Asia Banker in 2012. We also received this accolade from Global Finance in 2012, for the 8th consecutive year
  • Monitor the flow of payment and ensure that the outstanding balance of the transferred Letter of Credit is credited directly to you once it has been paid
  • Access advice and expertise on technical issues arising from your Transferred Letter of Credit with our experienced trade advisors
  • Ensure the terms of the Letter of Credit match your needs before it is issued with the help of our skilled, certified documentary checker

Products Details

 

The Export Letter of Credit should specifically state that the Letter of Credit is “transferable” and that DBS is authorised to do this. The terms and conditions of the Export Letter of Credit and the transferred Letter of Credit should be identical, except for the following:

  • The credit amount
  • Any unit price stated therein
  • The expiry date
  • The period for presentation
  • The latest shipment date or given period for shipment
  • The percentage for which insurance cover must be effected
  • The name of the first beneficiary may be substituted for that of the applicant/customer

 

  • The identity of the ultimate buyer and seller would probably be disclosed from the documentation submitted by the ultimate seller
  • If the ultimate seller is unable to submit the full set of documentation required by the transferred Letter of Credit, there is a risk of non-compliance with the terms and conditions of the Export Letter of Credit. This can result in non-payment from the Export Letter of Credit issuing bank

 

Full transfer (no change in any clause)USD 40 or equivalent
Partial transfer or change clause at transfer0.125% of transferred amount, min USD 40 or equivalent
AmendmentIncrease amount: 0.125% of increment;
Extend expiry date: 0.125% of full amount; min USD 40 or equivalent
Amendment of other clauses or cancellationUSD 40 or equivalent

FAQs

Do I need a credit facility to apply for a Transferable Letter of Credit?

No, you do not need a credit facility to apply for a Transferable Letter of Credit.

Can the transferred Letter of Credit be further transferred again?

No, it can only be transferred to one or more second beneficiary, but cannot be further transferred.

Can I partially transfer the Letter of Credit?

Yes, you may choose to fully or partially transfer the Letter of Credit.

If I am unable to substitute the draft and invoice in time, how do you proceed?

In the event when you are unable to substitute the invoice and draft of the second beneficiary, DBS will send the full set of documents received from the second beneficiary to the issuing bank for payment.

How long does it take to transfer to the second beneficiary?

Transfers usually take 24 hours to complete.

How do I complete the application form?

Please call us at 4008208988 for help in completing the application form.

 

How do I apply?

Simply call us at 400 820 8988 (or +86 400 820 8988 if you're overseas) or visit any of our Branches. You may also email us and our Relationship Manager will contact you as soon as possible.

 

Disclaimer:

The information provided in this website is for general information only and nothing contained in this website constitutes an invitation, offer or solicitation with respect to the entry into transactions mentioned in this website or subscription, purchase or sale of any products, services, securities or other financial instruments mentioned in this website or the taking of any position or the adoption of trading strategy in respect of any asset class (eg. currency, interest rate, commodity, equity etc). The information provided in this website is not provided with regard to the specific investment objectives, financial situation and the particular needs of any particular person who accesses this website.

 

The information provided on this website is subject to change without notice, its accuracy is not guaranteed, and it may be incomplete or condensed. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information in this website. We are not acting as your advisor or agent when providing the information in this website. The information in this website does not purport to identify the risks (direct or indirect) or other material considerations which may be associated with you entering into a particular transaction, subscribing for a particular service or purchasing or selling a particular security or financial instrument. Prior to entering into any proposed transaction or entering into any subscription, purchase or sale of any security or financial instrument, you should determine (after consultation with your own advisors if you deem fit), without reliance upon us or our affiliates, the economic risks and merits, as well as the legal, tax, accounting or other material characterisations and consequences of the transaction, subscription, purchase or sale, as the case may be, and that you are able to assume these risks.

 

We, and/or our affiliates, may hold, or trade, or act as market-maker, in any securities or other financial instruments mentioned in this website or related derivatives or may take positions or use trading strategies in respect of any asset class similar to or which differ from or be contrary to those mentioned in this website. We, and/or our affiliates conduct many businesses and activities that may relate to issuers of third party securities mentioned in this website and may provide broking, banking and other financial services to such issuers.

 

Anyone receiving or accessing this website must make their own assessment of the materials herein and conduct such investigations and seek such professional advice as they think fit for such purpose. The information provided on this site should not be regarded by recipients as a substitute for the exercise of their own judgment.

 

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