Documentary Credit Transfer : With-Substitution basis

The With-Substitution basis Export Documentary Credit Transfer gives you, the exporter, an easy and prompt way of sourcing goods from your vendors and/or suppliers without pre-requisite facilities setup. Upon receipt of transferable DC from the issuing bank and your request, HSBC transfer part of the DC to your supplier(s) (2nd beneficiary).

• Easy and prompt
• No requirement of facilities
• The exporter (1st beneficiary) can change the terms and conditions of the original DC such as the amount of the DC, unit price, expiry date and period for shipment to be benefited from the transfer (Latest UCP version enforced)
• Substitution of documents such as invoice is possible
• Transferable to 2nd beneficiary located on-shore as well as off-shore

• Exporter requests the buyer to issue a transferable DC to HSBC
• Upon receipt of the DC, the exporter request HSBC to transfer whole or part of the DC to one or several 2nd beneficiaries
• The transferred DC delivered to 2nd beneficiary
• Upon shipment, the 2nd beneficiary present shipping documents to HSBC through their bank to enable 1st beneficiary to substitute draft and invoice of its own
• Upon receipt of funds from issuing bank, HSBC pay 1st beneficiary and 2nd beneficiary

Please contact the Commercial Customer Service Centre at 1588-7639 or visit a Commercial Banking Centre for more details.