Cancellation of LC and Re-open to another Beneficiary using same LC No.

[mijanlt23004]

Dear Experts,
Please Comment for the following Case.
Case: Bank I open an irrevocable LC to the Beneficiary B1 through Advising Bank A1. After 60 days the applicant inform that beneficiary B unable to make shipment. He also approaches to re-open the LC using same LC No. and issue date to another Beneficiary B2 through another advising Bank A2. Please note that B2 also agree to received the same.
i) Is there any problem for the issuing bank I if it cancel the first one (After receiving confirmation from B1 through SWIFT of A1) and re-open the LC using same reference No. and date?
ii) Are there any problem for huge difference in reference date(issue date) and transmission date?
iii) what are the possible risk for issuing Bank for the above scenario.
Thanks.
Mijan

[shahriar]

LC number is just a reference. There is no rule in UCP on it. So if issuing bank can accomodate, i see no problem. Just a word of caution. If the LC process involves some regulatory reporting then it might be difficult for the issuing bank

[hardy2175]

Although there is no ICC rule prohibiting such reissue of LC however would the internal process and system of the Bank permit such a reissue with the same reference number.Why does the reference number have to be same when shipment has not yet been done?

[yousefi]

i think the reason that you insist to re-open the same lc to new benef with the same lc number is that applicant under this circumstance dose not need to get import license again,i think there is no risk for issuing Bank for the above scenario.