NO NEED TO CANCEL THE L/C

BIMALSHRESTHA'S QUERY
L/C EXPIRY

DEAR L/C EXPERT,

I,D LIKE TO KNOW WHAT WILL HAPPEN TO THE L/C IF THE BENEFICIARY PRESENTS L/C DOCUMENTS TO THE BANK AFTER THE L/C EXPIRY DATE?CAN THE IMPORTER REJECT THE DOCUMENTS AND WILL IT CANCEL THE L/C ?PLZ NOTE IT IS IRREVOCABLE LC AT SIGHT.

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MR. OLD MAN'S COMMENT
No need to cancel the L/C

Dear Bimalshrestha,

The expiry date of an L/C is understood as the last date for presentation. UCP 600 Article 6(e) clearly states that except as provided in Article 29(a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date. Therefore, a presentation made after the expiry date does not constitute a complying presentation and the applicant (importer) may refuse to take up the documents if he wishes to do so.

An L/C is irrevocable but it can be amended or cancelled if the applicant can obtain the agreement of the issuing bank, the confirming bank, if any, and the beneficiary. However, in this case, no need to cancel the L/C as the L/C itself has expired. Please note that the applicant is liable for payment of cancellation fees if he insists on cancelling the L/C.

Best regards,
Nguyen Huu Duc …