Assignment of Proceeds under Export L/C

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Key Features

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Service Details

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How to Apply

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Buyer’s name stays anonymous.

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Assignment and effect payment to the assignee(s) will be prepared by the bank.

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The bank will coordinate only with the beneficiary of the L/C.

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Conditions
The assignment of proceeds must be done domestically. The assignor and assignee must reside in Thailand The L/C must be issued by a bank in a foreign country All rights as document preparation administrator, recipient of payment, and others are still maintained by the beneficiary of the L/C After having collected payment, the bank will pay the assignees as agreed, and pay the remainder (if any) to the beneficiary of the L/C If the bank does not receive any payment, or the beneficiary does not submit the documents for collection, the bank shall not be obliged to make any payment to the contractual party because there is no payment made through the bank Procedure for an assignment of proceeds export L/C: The contractual party is the L/C beneficiary or the assignor who will make assignments of proceeds to the assignees. The bank acts as a coordinator and co-signs the agreement as a witness. Moreover, the bank will hold the duplicate contract and the original L/C and wait for the beneficiary of the L/C or the assignor to submit the L/C transfer documents to the bank for collection

Conditions

The assignment of proceeds must be done domestically. The assignor and assignee must reside in Thailand
The L/C must be issued by a bank in a foreign country
All rights as document preparation administrator, recipient of payment, and others are still maintained by the beneficiary of the L/C
After having collected payment, the bank will pay the assignees as agreed, and pay the remainder (if any) to the beneficiary of the L/C
If the bank does not receive any payment, or the beneficiary does not submit the documents for collection, the bank shall not be obliged to make any payment to the contractual party because there is no payment made through the bank
Procedure for an assignment of proceeds export L/C: The contractual party is the L/C beneficiary or the assignor who will make assignments of proceeds to the assignees. The bank acts as a coordinator and co-signs the agreement as a witness. Moreover, the bank will hold the duplicate contract and the original L/C and wait for the beneficiary of the L/C or the assignor to submit the L/C transfer documents to the bank for collection

Fees
If the assignment of proceeds order is made before payment is received, the charge is 0.125% of the amount assigned per transaction. The minimum charge is 1,000 baht If the assignment of proceeds order is made after payment is received, or if is it a payment instruction case, the minimum charge is 1,000 baht/copy

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Required Documents
Contract for assignment of proceeds under L/C Letter of Credit

Application Procedures
The exporter and the beneficiary submit the original L/C and other required documents to the bank for assignment of proceeds The bank facilitates contract preparation between the two parties for a complete contract for the assignment of proceeds under the L/C The bank delivers the original and duplicate copies to the parties, and the bank keeps the L/C along with a copy The bank collects the assignment of proceeds fees from the assignor or the other party as agreed The assignor presents export documents for collection under L/C to the bank After purchase of assignment of proceeds or receipt of payment, the bank will transfer payment to the assignee as stipulated in the contract

Application Procedures

The exporter and the beneficiary submit the original L/C and other required documents to the bank for assignment of proceeds
The bank facilitates contract preparation between the two parties for a complete contract for the assignment of proceeds under the L/C
The bank delivers the original and duplicate copies to the parties, and the bank keeps the L/C along with a copy
The bank collects the assignment of proceeds fees from the assignor or the other party as agreed
The assignor presents export documents for collection under L/C to the bank
After purchase of assignment of proceeds or receipt of payment, the bank will transfer payment to the assignee as stipulated in the contract