Are We Charged Regardless Of Whether We Accept Or Reject An Amendment?

nikvir · Post by **nikvir** » Sat Mar 11, 2017 2:42 am

We are a beneficiary to an irrevocable l/c. The L/C itself have been amended multiple times, ranging from corrections of spelling mistakes in our company name to multiple extensions of l/c expiration. We have accepted in writing some amendment, but we did not respond to the majority of amendments. Now, the final amendment was received and we are planning on shipping the goods, and my question is this: do we now send rejections of all other amendments? Each amendment had narrative about charges for each amendment, are we charged regardless of whether we accept or reject an amendment? Thank you in advance for all your help.

shafi865 · Post by **shafi865** » Sat Mar 11, 2017 11:29 pm

Hi!
Please be informed that according to UCP 600 sub-article 10(c) ''The beneficiary should give notification of acceptance or rejection of an amendment. If the beneficiary fails to give such notification, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment. As of that moment the credit will be amended.".

Again UCP 600 sub-article 10(e) states that partial acceptance of an amendment is not allowed and will be deemed to be notification of rejection of the amendment.

From the above two sub-articles of UCP 600 article 10 it is obvious that you are able to accept any amendment partially without incurring the charges as each amendment had narrative about charges for each amendment.

You should communicate your rejection of any amendment to the issuing through advising bank to avoid any future complexity .

Regards,
Shafique

nikvir · Post by **nikvir** » Tue Mar 14, 2017 2:06 am

thank you so much for the response.
can amendments be accepted /rejected at any time? even if months have passed?
Also, do the charges apply for rejected amendments?