Home Uncategorized WHEN IS THE LC AMENDED?

WHEN IS THE LC AMENDED?

2 min read
2
0
2,439

QUERY FROM TRANG TRANG

Dear Mr.Old Man,

I need your help in this case:
There is one original L/C with the details:
+ the latest delivery date: 25/07/20X
+ the expiry date of L/C: 09/08/20X
Then, on 04/08/20X, they received an amendment:
+ the latest delivery date: 15/08/20X
+ the expiry date of L/C: 30/08/20X
If the exporter don't give notification of acceptance or rejection of that amendment but deliver the goods on 14/08/20X and do complying presentation 6 days later, is L/C amended from that time? (article 10, UCP 600)?
If so, is the original L/C still valid until 20/08/20X?

I hope that you will reply as soon as possible

Thanks so much!

Yours failthfully,

Trang Trang

——–
COMMENT

Dear Trang Trang,

Artcle 10 (c) provides: "The beneficiary should give notification of acceptance or rejection of an amendment. If the beneficiary fails to give such notification, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment. As of that moment the credit will be amended."

I note from your description that the amendment was issued before the LC expiry date and the beneficiary is supposed to effect shipment and make a presentation complying with the amendment. I am of opinion that by effecting shipment and making a presentation complying with the LC and the amendment, the beneficiary has agreed to accept the amendment; the LC is deemed to be amended as of the time the beneficiary made such a complying presentation.

Regards,
Mr. Old Man

Check Also

INVOICE NOT CERTIFYING WHAT HAS NOT BEEN SHIPPED

QUESTION Dear Sir, LC allows both AIR and SEA shipment. Amount: USD 100,000 Shipment by AI…