Amendment of a irrevocal letter of credit

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heinmyathtut
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Joined: Sat Jun 26, 2021 9:50 am
First Name: Hein Myat
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Amendment of a irrevocal letter of credit

Post by heinmyathtut » Sat Jun 26, 2021 9:55 am

Dear All,
I am an importer and my supplier and I have been agreed to amend a letter of credit for reducing the quantity and price of goods.
My bank has sent an amendment swift message MT707 to beneficiary bank, but my bank told me they want swift message reply from beneficiary bank to know if they accepted the amendment. Is this swift message reply MT730 and how do i know if they accepted amendment swift.

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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Re: Amendment of a irrevocal letter of credit

Post by picant » Fri Jul 02, 2021 11:01 am

Hi Pal,

Amendment must be accepted by the l/c beneficiary and eventually the confirming bank. Even if the acceptance is required in the amendment message the beneficiary is not obliged to declare it. So, you have to contact the beneficiary requiring its acceptance and probably your bank will receive a message MT799 allowing the reduction of l/c amount due to the changing of quantity and prices of the goods.
Other comments appreciated.
Ciao

heinmyathtut
Posts: 2
Joined: Sat Jun 26, 2021 9:50 am
First Name: Hein Myat
Last Name: Htut
Organization: H AND S MYANMAR
Filter: Two Plus Two =: 4
Location: Yangon

Re: Amendment of a irrevocal letter of credit

Post by heinmyathtut » Fri Jul 02, 2021 11:24 am

Thank you very much for answer.
So, I have to request beneficiary to instruct his bank to send acceptance swift to my bank for this change?

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picant
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Joined: Wed Aug 20, 2008 1:49 pm

Re: Amendment of a irrevocal letter of credit

Post by picant » Tue Jul 06, 2021 12:56 pm

Yes

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