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Amendment & Expiry

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Thu, 11/27/2014 - 06:55
ignorant bliss
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Joined: 04/14/2010
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Hi,

I was looking for some help on the following questions:

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LC details:

31C: Date of issue : 141108 (8 Nov 2014)

31D: Date and Place of Expiry: 150228, Hamburg (28 Feb 2015)

44 C: Latest Date of Shipment: 150207 (07 Feb 2015)

Case 1:

Goods shipped on board (B/L Date) : 09 Feb 2015 (after Latest Date of Shipment)

On 10 Feb 2015 the Beneficiary asks the Buyer (applicant) to amend the LC by amending the Latest Date of Shipment as 09 Feb 2015.

Can the Buyer (applicant) amend the LC by amending the Latest Date of Shipment as 09 Feb 2015 ?

Here the LC had not Expired. 

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Case 2: 

Goods shipped on board (B/L Date) : 02 March 2015 (after Date of Expiry) 

On 03 March 2015 the Beneficiary asks the Buyer (applicant) to amend the LC by amending the Latest Date of Shipment as 02 March 2015.

Can the Buyer (applicant) amend the LC by amending the Latest Date of Shipment as 02 March 2015 ?

Here the LC had Expired.

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 Thanks,

‹ Penalty Clause for Late Delivery of Shipment: Documents against Payment (DP) ›
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Thu, 11/27/2014 - 08:17
#1
phill doran
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Joined: 02/10/2009
one out of two...

Hello Mr/Ms Bliss (sorry to be formal, but I can’t bring myself to call you by your apparently given name!)

I believe the first example is not a problem, provided compliant documents are presented within the time-frame for presentation but before the expiry of the credit.

However the second is a problem.

Once the credit expires, it expires. If the new shipment date is later than the expiry date, the fact that you have complied with the shipment date is irrelevant.

Others may have different views, of course: it is the Internet after all.

I wish you well with this

Cheers
phill
“...in the kingdom of the blind; what you see is what you get...”

 

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Thu, 11/27/2014 - 09:25
#2
ignorant bliss
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Joined: 04/14/2010
Hi Phil, Thanks for your

Hi Phil,

Thanks for your reply.

My understanding based on your reply:

Case 1: The LC can be amended (the Latest Date of Shipment can be amended) provided the shipment is shipped on board before the expiry date.

Case 2: No amendment if the LC had expired.

 

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Thu, 11/27/2014 - 09:30
#3
phill doran
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Joined: 02/10/2009
yes...

...that is how I see it, unless in the second example the parties also amend the expiry date.

phill

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