Issues Regarding Transferable Credits under UCP600 Article 38

Transfer, Re-Issuance, or Back to Back Credit? A Controversial Question

In a past Chinese case concerning a transferable credit,[[1]] the Intermediate People's Court of Jingdezhen raised the question of whether the UCP credit in dispute was a transferred credit or a re-issued credit. Indeed, under Chinese legal terminology, a 're-issued credit' refers to an issuing bank’s issuance of a new, separate credit. In contrast, a 'transferable credit' involves transferring part of the original credit according to UCP600 Article 38. Therefore, from the perspective of this rule, the term 'transferable credit' is more accurate.