After receiving a letter of credit with itself as the beneficiary, the exporter should first review it. There are two purposes for the review: one is to determine the credit status of the issuing bank and decide whether to require the letter of credit to be confirmed by other banks; the other is to determine whether the terms of the letter of credit are consistent with the contract, whether there are unfeasible requirements, whether there are soft terms, and decide whether to ask the applicant to modify the letter of credit. The beneficiary must note that before receiving a qualified letter of credit or modifying the letter of credit to a satisfactory condition, the beneficiary must not ship the goods, otherwise it will lose the initiative. If losses are suffered due to delayed shipment, claims can be made to the importer based on the contract.
In addition, the beneficiary has the final right to accept or veto the amendment under an irrevocable letter of credit. The beneficiary should also carefully review the amendment and decide whether to accept it. The beneficiary can clearly express his attitude of acceptance or rejection to the notifying bank, or he can express his attitude by default, that is, when the beneficiary submits the documents, if the documents include the contents of the amendment, it means that the amendment is accepted; if the documents only meet the terms of the letter of credit before the amendment, it means that the amendment is rejected. However, the beneficiary should accept or reject all the amendments in the same amendment letter, and cannot accept or reject part of the amendment. When issuing or notifying the amendment letter, some banks will clearly stipulate that the beneficiary should express his position before a certain date, otherwise it will be treated as a default amendment. This practice violates UCP600, and the beneficiary has the full right to refuse to be bound by it.
After the beneficiary accepts the letter of credit, he should strictly follow the instructions of the letter of credit to handle the shipment of the goods, including handling commodity inspection, consignment, insurance and other matters, and obtain qualified documents issued by the relevant parties. At the same time, the beneficiary should prepare necessary documents in accordance with the provisions of the letter of credit, such as commercial invoices, bills of exchange, packing lists, etc., to prepare for the delivery of documents and settlement of exchange.