AMENDMENT TO LC THAT HAS EXPIRED

8 Comments

1. 

   anonymous

   April 19, 2010 at 4:04 pm

   Mary writes:Hi Mr Duc,Our docs presented to issuing bank on 10 apr 2010. However, on 15Apr2010 we received amendment about increasing unit price.Can we re-present docs by resend drafts and invoice for replacement which comply with amendment? or we will ask issuing bank for returning the docs. After that, we will present new docs.According to you, which one is the best?TKS much!!!!!!

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2. 

   mroldmanvcb

   April 20, 2010 at 8:04 am

   Morning!It depends. But pls note that docs must be presented within the period for presentation and/or within LC validity. To avoid being late for presentation and ensure the documents are complying, you had better present new draft and invoice together with a covering letter expressly stating that:- New draft and invoice presented are to replace the previously presented draft and invoice (which should be disregarded and returned to us) – Pls treat all the documents including new draft and invoice (but the disregarded draft and invoice) as a new presentation.Regards,Mr. Old Man

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3. 

   anonymous

   June 6, 2011 at 3:06 pm

   asrar writes:I am asking the amendment of LC can be change the amount will be reduce and date of shipment and expiry date extend.

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4. 

   mroldmanvcb

   June 6, 2011 at 6:06 pm

   According to sub-article 10(a), except as otherwise provided by article 38, an LC can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary. So, you can ask for such amendments provided that the issuing bank, the confirming bank (if any) and the beneficiary agree.

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5. 

   anonymous

   June 11, 2012 at 9:06 am

   Anonymous writes:Hi Mr. Old Man,Relating to this topic, I would like to ask a real case as follows:- L/C expired 1/1/2012- Docs presented on 1/2/2012 => Issuing bank refused.- 1/3/2012: Amend L/C to new expiry date: 31/12/2012In this case, what shall issuing bank do with the refused docs? (a): Return it for new presentation or (b): automatically accept the docs. If the answer is (b) then what the time can issuing bank treat as presenting date????.Looking forward to hearing from you.

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6. 

   anonymous

   June 11, 2012 at 10:06 am

   Anonymous writes:Hi Mr. Old Man,Relating to this topic, I would like to ask a real case as follows:- L/C has expired 1/1/2012- Docs presented on 1/2/2012 => Issuing bank refused.- 1/3/2012: Amend L/C to new expiry date: 31/12/2012In this case, what shall issuing bank do with the refused docs? (a): Return it for new presentation or (b): automatically accept the docs. If the answer is (b) then what the time can issuing bank treat as presenting date????.Looking forward to hearing from you.Littlered.

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7. 

   mroldmanvcb

   June 12, 2012 at 12:06 am

   There’s no need for the issuing bank/applicant to issue an amendment to extend the expiry date if they have intention to accept the documents which contains only one discrepancy “L/C expired”. If the applicant agrees to waive the discrepancy and the issuing bank accept it, the issuing bank may deliver the documents to the applicant and effect payment.Assuming that such an amendment has been issued and the issuing bank is still holding documents, it must pay when the documents are found to comply with the L/C and the amendment thereto but in any case no later than the sixth banking day following the day of amendment. In my opinion, the five banking day rule should not apply in this case. In fair play spirit the issuing bank should pay as of the time the amendment is issued.Best regards,

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8. 

   anonymous

   June 12, 2012 at 4:06 pm

   Anonymous writes:Thank you very much for your reply.

   Reply