I,D LIKE TO KNOW IS THERE ANYWAY WE CAN CANCELL THE IRREVOCABLE LETTER OF CREDIT
AT SIGHT BEFORE ITS EXPIRY DATE?DUE TO THE TODAY,S INCREASING TREND IN THE PRICE IN THE MARKET THE BENEFICIARY ISN,T INTERESTED TO SUPPLY HIS PRODUCTS IN PREVIOUS PRICE HE QUOTE.NOW HE IS DEMANDING HIGHER PRICE AND ASKING TO AMEND THE LC WITH NEW PRICE.BUT THE NEW PRICE ISN,T ACCEPTABLE TO ME.SO I WANT TO CANCEL THE LC.HOW CAN I SOLVE THIS PROBLEM?URGENT REPLY IS EXPECTED.
Any amendment is subject to mutual agreement between the LC Applicant and LC Beneficiary through their intermediary banks to facilitate such amendments.
With the price going high, beneficiary have a right to request you to amend the LC - In case it is not agreeable to you, you may refuse to amend the LC - Beneficiary will be compelled to supply merchandise as mentioned in the Original LC or LC will continue untill its expiry.
However, In case you want to clean oout your LC Facility from the Bank, you must ask the beneficiary to confirm their willingness to cancel the LC and confirm the cancellation to LC issuing Bank.
Nayeem K. Rahman
bimal shrestha ;I WANT TO CLEAN OUT LC FACILITY FROM THE BANK.HOW TO GET THE WILLINGNESS OF BENEFICIARY TO CANCEL THE LC?WHAT TYPE OF PAPER SHALL I ASK THE BENEFICIARY SO THAT I,M ABLE TO CLEAN OUT MY LC FACILITY?UR HELP WOULD BE HIGHLY APPRECIATED.
LC may be cancelled only under consent of issuing bank, confirming bank and beneficiary.
So at least beneficiary's agreement is mandatory.
Have You asked beneficiary for LC cancellation?
If he is not will cancel LC then there is no way than just to wait when LC become expired.