ANZ can help exporters with the following concerns in relation to Documentary Credits.

Advising Export Documentary Credits

ANZ acts as an advising bank for a number of overseas banks, as they forward their Documentary Credits to us. When we receive the Documentary Credit, it is checked for workability and to ensure that it makes sense.

How ANZ can help

If you're an existing ANZ customer, we'll forward the Documentary Credit straight to you. If you use our ANZ Transactive Trade* Internet application, we can forward this to you electronically, giving you up-to-the minute access to your Export Documentary Credits.

If you don't already deal directly with ANZ for your Export Documentary Credits, then we'll forward you the Documentary Credit on receipt of an advising fee. However, with our extensive experience in Trade Finance transactions - why not give us a try? We understand the offshore risks of exporting, and would be happy to discuss and help you negotiate your Export Documentary Credit. If you then choose to negotiate your documents through ANZ, we'll refund any Export Documentary Credit advising fee you've paid.

Eligibility criteria, fees, charges, terms and conditions apply.

*online@anz Trade Services is only available to registered ANZ customers.

Bank and country risk (confirmation)

When an exporter receives a Documentary Credit, it has usually been advised "without any engagement or responsibility" by the advising bank. This means that the payment risks of both the overseas issuing bank and the overseas country remain for the exporter, even though the exporter may present compliant documents on shipment.

Commonly referred to as "bank and country risk", these can be mitigated for the exporter if they ask the buyer to have the issuing bank request the exporter's bank to add its "confirmation" to the Documentary Credit. If the exporter's bank agrees to do so, it adds its obligation for payment to the Documentary Credit subject to presentation of compliant documents.

How ANZ can help

ANZ is able to add its confirmation to Documentary Credits for exporter customers. Its ability to confirm is dependent upon the level of ANZ exposure to the issuing bank and country at the same time. The level of fees applied reflects the risk against the bank and country as determined by ANZ.

There are a number of reasons why an issuing bank may be unwilling to have its credit confirmed. Where the exporter is an ANZ customer, it may be possible for ANZ to agree to a comparable arrangement directly with the exporter. These arrangements are usually called "silent confirmation" or "domestic without recourse facilities".

ANZ credit criteria apply, and an establishment fee may be payable.

Other fees, charges, terms and conditions apply.

Transferable Documentary Credits

A Transferable Documentary Credit is a Documentary Credit under which the beneficiary (first beneficiary) may request the bank specifically authorised in the credit to transfer the credit, available in whole or part, to one or more secondary beneficiary(ies).

If a transfer is effected it can only be on the terms and conditions specified in the original Documentary Credit.*

If all or part of the Documentary Credit is transferred, the first beneficiary retains the right to substitute their own drafts and invoices for those of the second beneficiary, if they so require.

Instructions must also be provided on whether the bank is allowed to advise any amendments to the original Documentary Credit to the second beneficiary.

ANZ credit criteria apply, and an establishment fee may be payable.

Other fees, charges, terms and conditions apply.

* Exceptions may apply.

Back-to-back Documentary Credits

Back-to-back Documentary Credits are two Documentary Credits enabling both sides of a transaction in which an intermediary buys goods from one customer and sells them to another. Both settlements are made under Documentary Credit. A Back-to-back Documentary Credit is an alternative to a transferable credit.

How it works

The Back-to-back Documentary Credit allows exporters who may not qualify for unsecured bank credit to use a Documentary Credit as security for a second Documentary Credit in favour of a supplier.

The second Documentary Credit is worded to conform precisely to the original export (head) Documentary Credit, and dated to expire before the head credit, ensuring the seller has sufficient time to present documents within the time limits of the head credit.

When documents are presented under the Back-to-back Documentary Credit, the bank will advise the opener of the receipt of the documents.

The opener substitutes his own invoices and drafts made out in the name of the foreign buyer, which are then negotiated under the head Documentary Credit.

ANZ credit criteria apply, and an establishment fee may be payable.

Other fees, charges, terms and conditions apply.

How to apply

For more information or to apply for an ANZ Documentary Credit, contact an ANZ Trade Specialist:

Call Us  Call 0800 269 873

Branch  Visit your nearest ANZ branch