Hi,
If AMD is issued after shipment, does bene has complied with an amendment.
For eg: We have amended an LC, where in notify party has been changed. AMD was issued on 1 Aug.
Bene has presented the B/L as per Swift 700 and shipment has happend on 31 July.
Does bene has comply with AMD or not
AMD after shipment
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MOHAMMEDMUJEEB
- Posts: 16
- Joined: Fri Apr 05, 2019 5:22 pm
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GlennRansier_
- Posts: 132
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AMD after shipment
The LC was amended. In this case, the beneficiay may reject the amendment.
AMD after shipment
Dear Mohammed,
in that case the documentary presentation reflects whether amendment is rejected or not, in that case you have to take it as rejected.
regards
Stephan
in that case the documentary presentation reflects whether amendment is rejected or not, in that case you have to take it as rejected.
regards
Stephan
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GlennRansier_
- Posts: 132
- Joined: Fri Apr 05, 2019 5:19 pm
AMD after shipment
Hi Gerhard,
UCP Article 10 c. generally only allows banks to consider amendments as "accepted" if the beneficiary presents documents that comply with the LC as amended. UCP does not allow an examining bank to consider an amendment rejected by the beneficiary unless the beneficiary has communicated this. The expectation is that the beneficiary will need to "reject" the amendment as the banks are expected to examine documents in accordance with the amended LC. If the amendment is received after a bank has already negotiated/honoured then clearly this can be communicated to the issuer/confirmer.
UCP Article 10 c. generally only allows banks to consider amendments as "accepted" if the beneficiary presents documents that comply with the LC as amended. UCP does not allow an examining bank to consider an amendment rejected by the beneficiary unless the beneficiary has communicated this. The expectation is that the beneficiary will need to "reject" the amendment as the banks are expected to examine documents in accordance with the amended LC. If the amendment is received after a bank has already negotiated/honoured then clearly this can be communicated to the issuer/confirmer.