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MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Mon Jul 01, 2019 9:53 pm
by dinesh2476
Dear Experts,
LC had beneficiary consent and confirmed, Do we need beneficiary consent for the amendment too?
Amendment has a extension of LC and amount.
Thanks & Regard
Dinesh Kumar.
Re: MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Tue Jul 02, 2019 1:58 pm
by Navi
Hi Dinesh,
Do you need beneficiary consent to adjust your records according to amendment?
In practice, when we amend an LC and if the amendments are not in favour of beneficiary, i.e. reduction in the amount or shorten shipment date, expire date or presentation period, we seek consent of beneficiary before we adjust our records. In your case, extension of LC and amount will not harm beneficiary's benefits under the LC. He may use it or not. It is your choice to seek beneficiary's consent.
MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Thu Jul 04, 2019 5:57 pm
by dinesh2476
Dear Navi,
It is MAY ADD LC, we understand that we require beneficiary consent before confirmation as beneficiary has to bear the confirmation charges. I understand that is what the expectation of the issuing bank too.
Now, LC has confirmation understanding. an amendment received for extension of expiry and LC amount, would require beneficiary consent?
As booking of charges in system without seeking beneficiary consent may lead to possible rejection of beneficiary consent and leave charges booked in question
I doubt whether recovery these of charges referring article 37A even possible as we have not request for the beneficiary consent?
Please advise.
Re: MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Thu Jul 04, 2019 9:05 pm
by TaiOanlan
Please correct if my understanding of your situation is wrong.
You are yet to receive beneficiary consent from beneficiary, so you don`t know whether or not beneficiary wants your bank to add confirmation. Then, you just simply advise the amendment just as without confirm LC.
Regards,
Re: MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Thu Jul 04, 2019 11:43 pm
by dinesh2476
dinesh2476 wrote: ↑Thu Jul 04, 2019 5:57 pm
Dear Navi,
It is MAY ADD LC, we understand that we require beneficiary consent before confirmation as beneficiary has to bear the confirmation charges. I understand that is what the expectation of the issuing bank too.
Now, LC has confirmation understanding. an amendment received for extension of expiry and LC amount, would require beneficiary consent?
As booking of charges in system without seeking beneficiary consent may lead to possible rejection of beneficiary consent and leave charges booked in question
I doubt whether recovery these of charges referring article 37A even not possible as we have not request for the beneficiary consent?
Please advise.
MAY ADD LC- BENE CONSENT FOR AMENDMENT
Posted: Sun Jul 07, 2019 2:13 pm
by dinesh2476
Dear Experts,
Any opinion welcome.
Thanks & Regards
Dinesh Kumar.