PARTIAL ACCEPTANCE OF AN AMENDMENT

QUESTION

Dear Mr. Old Man,

I understand that  the beneficiary is not allowed to accept part of an amendment.

I want to know whether the amendment is deemed to be accepted or rejected when a presentation complies with part of the amendment only.

I would appreciate your soon answer.

Thank you in advance.

Best regards,

VAN

———

ANSWER

Hi,

Your understanding is correct. According to UCP 600 sub-article 10 (e), partial acceptance of an amendment is not allowed and will be deemed to be notification of rejection of the amendment.

Where the beneficiary does not give notification of acceptance or rejection, a presentation that complies with the LC and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of the amendment.

To answer your question, I would like to give a situational example as follows:

– LC stipulates:

Goods: Ford Fiesta

Quantity: 4 units

Unit price: USD20,000

Total amount: USD80,000 CIF Danang port, Vietnam

Partial shipments: allowed

– Amendment states:

Quantity now to read as 7 units i/o 4 units

Total amount now to read as USD140,000 CIF Danang port, Vietnam

Partial shipments not allowed.

– Presented documents show:

Goods: Ford Fiesta

Quantity: 6 units

Unit price: USD20,000

Total amount: USD120,000 CIF Danang port, Vietnam

The presented documents neither comply with the original LC nor the amendment thereto.

1. A) If the amendment is treated as not accepted by the beneficiary, you can raise the discrepancies: (1) over shipped; and (2) overdrawn.

1. B) If the amendment is treated as accepted by the beneficiary, you can raise the discrepancies: (1) partial shipments; (2) short shipment; and (3) short drawn.

I tend to choose B. The beneficiary has accepted the amendment. However, the presentation partly complies with the amendment (I think the beneficiary would have not shipped 6 units of Ford Fiesta if he had not accepted the amendment).

Kind regards,

Mr. Old Man