Can A Cancelled LC Be Re-Open?

seikh · Post by **seikh** » Wed Jun 03, 2015 3:48 pm

Dear Sir,
o
We have issued a LC. But advising bank did not advise the LC to the beneficiary. At request of the applicant we have sent a cancel message to the advising bank. Advising bank did not provide any message to the by eneficiary. Beneficiary has made shipment of the goods and applicant want to re-open the LC. Is it possible to re-open the LC? What is the responsibility in our end.

Regards

Seikh

picant · Post by **picant** » Sat Jun 06, 2015 2:39 pm

Hi Pal,

Have you investigated on the reasons that advising bank did not informed the beneficiary?
Before sending a message to re-start a l/c I would be sure that the previous l/c is void.(not advised, already expired etc)
If you will use the same bank, you may clause the l/c "This l/c replaces in full our l/c no........, same amount, favouring the same beneficiary, issued on ....., declared unavailed....." or similar sentence.
If yu are sure that the previous l/c is null and void, you may issue a new one.
Other comments appreciated

Ciao

AbulKalam · Post by **AbulKalam** » Sat Jun 13, 2015 12:20 am

Hi Picant,
Please clear me when a cancel LC re-open, what will be the LC Number. Will it be a new one or previous number?

Regards
Azad

picant · Post by **picant** » Mon Jun 15, 2015 12:20 am

Hi Pal,

It is better to use the same l/c number!

dinesh2476 · Post by **dinesh2476** » Thu Jul 02, 2015 3:47 pm

Dear seikh,

How did we come to know that the advising bank did not advise the message to the beneficiary?

Article 9
e.If a bank is requested to advise a credit or amendment but elects not to do so, It must so inform, without delay, the bank from which the credit, amendment or advice has been received..

The banks would have received the documents before the amendment from yourselves. Hence kindly check with them before any action....We cannot issue another LC until/unless we hear from advising bank.

We need to take it up with advising bank for not performing under UCP600 article 9(e)

Thanks & Regards
Dinesh Kumar.

shahriar · Post by **shahriar** » Fri Aug 21, 2015 7:46 pm

Dear dinesh,
Interestingly there is not much we can do if the advising bank does not advice a LC and also does not notify us. But better not spread that word

anne0725 · Post by **anne0725** » Tue Aug 25, 2015 11:34 pm

Did benef approach advising bank for reason of unadvised ? If it's due to bank internal guidelines or any compliant issue , then I don't see the need to re issue and advise thru the same bank .
Whatever LC ref or date of issuance for the re -issue LC depends on the issuing bank internal procedure.
Above simply speaking fr a general point of view cos i ain't an expert in DC .

hardy2175 · Post by **hardy2175** » Sat Aug 29, 2015 10:31 pm

LC cannot be cancelled without the consent of the beneficiary , so if tthe beneficiary has not assented to the cancellation of the LC , the LC is still in force , if not yet expired.
All that are the necessary amendments to the existing LC without change in reference no.

AbulKalam · Post by **AbulKalam** » Sat Nov 07, 2015 12:35 pm

Hi Dear,
Suppose LC has been cancelled with the consent of beneficiary but afterwards both the applicant and beneficiary want to re-open the same LC. It is possible?

Regards
Azad

picant · Post by **picant** » Sat Nov 07, 2015 5:38 pm

Hi Pal,

why not? You will send an amendment and if beneficiary agrees, that is ok.
Ciao

AbulKalam · Post by **AbulKalam** » Sun Nov 08, 2015 12:18 am

Thanks dear picant for your valuable reply.

Tareq · Post by **Tareq** » Fri Nov 13, 2015 9:47 pm

Cancellation of LC requires the consent of the issuing Bank, Confirming Bank if any and the Beneficiary. So, If you want to re-open the same LC It also requires the consent of the above. You just sent an amendment and if both parties agree to this-it is possible.