Refusing of Amendment

MinhNguyen · Post by **MinhNguyen** » Fri Jun 19, 2020 11:55 am

Dear Experts

I have a case to ask:
The Beneficiary received an L/C of USD100,000 (No tolerance)
-1st Amendment: Change of a Document in F46A
-1st Presentation was made to comply with the amendment
With value $30,000
-2nd Amendment: L/C Value - $1,000
-2nd Presentation value: $ 30,000
-3rd Amendment: Cgabge of a Document in F46A
-3rd Presentation was made to comply with the 3rd amendment with $40,000
However, the 3rd presentation exceed the new L/C value ($99,000)
The customer said to be no discrepancy since they have silent refuse the 2nd Amendment.
...
I wonder that since there is no notify to the issuing bank about the 2nd amendment.
How can the issuing bank decide whether the 2nd Amendment be silent refused by the 2nd presentation?
Would the 3rd presentation made a discrepancy in this situation?

Thank you for your support

picant · Post by **picant** » Fri Jun 19, 2020 7:36 pm

Hi Pal,

in effect if the second amendment has not been accepted, the fact that the presentation complies with the 3rd one is acceptable. Check if intentionally or not, beneficiary approved the second amendment.
Let us know.
Ciao

dinesh2476 · Post by **dinesh2476** » Sat Jun 20, 2020 3:12 pm

HI,

If we look at from ops view, any amendments that are detrimental in nature have to be approved by a beneficiary, unless it gets approved, books that are maintained by ops may not have the effect documented.

If there is no communication with regard to this detrimental amendment(-1000) and further amendment which has no detrimental effect and favours the beneficiary then document complying with subsequent amendments will be taken for consideration.

Agree with you, from a UCP point of view, either amendment has to accepted by separate communication or documents presented that comply with an amendment to be treated for acceptance of that amendment

Thanks & Regards
Dinesh Kumar

Navi · Post by **Navi** » Wed Jun 24, 2020 3:00 pm

UCP 600, 10c is no good for such similar situations. UCP must be revised so that when an amendment is issued, beneficiary to give notification of acceptance or rejection of the amendment, at latest during time of presentation.