Amendment Of Expired LC

moyaz · Post by **moyaz** » Wed Mar 05, 2014 8:52 pm

the applicant requests for a mendment of the lc which has already expired. can an pc be amended after its. export?

mzhossainctg2 · Post by **mzhossainctg2** » Wed Mar 05, 2014 9:50 pm

It is common practice in DC world that An expired LC can be amended if issuing bank and Beneficiary agree.
But at first they need to extend validity of LC for making it workable.

Regards
Zakir

silentlove · Post by **silentlove** » Thu Mar 06, 2014 12:15 am

Theoretically not possible as an expired LC ceases to exist, so no amendment can resurrect an expired LC.

However, in practice, If beneficiary would accept an extension to an LC's expiry date, then its possible, and LC can be extended for a further period. In addition, its the Issuing Bank discretion whether they would accept or reject an amendment request from applicant, there is cases where an issuing Bank does not want to deal more in an LC, due to a risky client or risky transaction.

Other comments are welcomed.

abelhoci · Post by **abelhoci** » Thu Mar 06, 2014 12:47 am

When the LC expires, the liability of the issuing bank is removed. If the customer ships the goods he does it at his own risk and peril. When the LC Expires it means there is no more LC.
The bank can extend the validity of the LC at the request of the applicant and if the bank agrees to.

Waldorf · Post by **Waldorf** » Sat Mar 15, 2014 10:08 pm

Well, an L/C which expired does not exist anymore.
However, practice shows that l/c’s validity are often extended by amendment after having expired.
I have the impression though that often suppliers (beneficiary) request their clients (applicant) to have the validity of the expired l/c extended by an amendment only when the goods are ready for shipment with the purpose of avoiding commitment commission (or however named) over the period that the L/C has not been valid.

angel · Post by **angel** » Sat Jun 21, 2014 2:36 pm

i have also question here...

if lc has expired and payment also remitted to beneficiary...in this case amendment can be made?? Applicant want amendment in H.S CODE ...

picant · Post by **picant** » Sun Jun 22, 2014 1:32 pm

Hi Pals,

IMHO, this problem is buyer/seller problem, however the seller may send an invoice with HS Code amended, to buyer via the issuing bank, outside l/c frame. In some Countries it is necessary to pass through a bank for import/export transaction.
So, seller will issue replacing invoice with such extra data, send it via its bank to buyer's bank, on collection basis, free of payment. It will probably costs collection charges.
Other comments appreciated
Ciao