Things to note when modifying a letter of credit
(1) Understand the boundary between modification and non-modification.
(2) The contents that need to be modified should be proposed at one time as much as possible.
(3) For the modification of the letter of credit made unilaterally by the applicant, the beneficiary has the right to express acceptance or rejection, or remain silent until the documents are submitted. When submitting documents, the beneficiary shall accept the modification by making the documents in accordance with the modification notice, and the modification notice shall take effect. If the beneficiary fails to make the documents in accordance with the modification notice, the beneficiary shall issue a rejection letter to indicate the rejection.
(4) For the contents of the same modification notice, only full acceptance or full rejection can be expressed, but partial acceptance or partial rejection cannot be expressed.
(5) Before the beneficiary expresses acceptance of the contents of the modification of the letter of credit, the original letter of credit shall continue to be valid for the beneficiary.
(6) For the accepted letter of credit modification, it should be submitted together with the original letter of credit when submitting documents for negotiation, and the number of modifications should be indicated.
The main bodies for reviewing letters of credit are the notifying bank and the exporter, and the focus of the review is different. The exporter shall review the certificate according to the trade contract. If any discrepancies are found and they must be changed, the exporter shall promptly request a change of the certificate. If the certificate is confirmed to be correct, the exporter shall begin to perform the contract.