LC May add

[dinesh2476]

Dear Experts,

Need opinion for the below case.
1. received a LC with below conditions:
49: May add
71: All charges are on applicant account
.
Received beneficiary consent to add confirmation to the credit. Please advice against whom the confirmation charges to be booked? beneficiary or applicant?. or we need to seek clarification from the issuing bank?

Does may add LC enjoy the same benefit of UCP article given below?

a. Except as otherwise provided by article 38, a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary

How to avoid situation where advising bank booked confirmation post beneficiary consent for the may add LC, Later beneficiary and Issuing bank cancelled the LC as per applicant request without the knowledge of the bank added confirmation.
.
Thanks & Regards
Dinesh kumar

[picant]

Hi Pal,

the issuing bank indicating "may add" ,imho, authorized the advising bank to add confirmation to l/c, under request and costs of beneficiary. In your case all charges are on applicant account so I think the confirmimg costs too. However to avoid any doubts a clarification by the issuing bank is necessary.

The confirming bank, requested or authorized, will inform the issuing bank and will enjoy the same benefit concerning the amendment.
Other comments appreciated-ciao