Letter of Credit Forum

Dear All,

If irrevocable letter of credit is issued under UCP 600 Latest Version with clause that discription of goods as per purchase order and commercial and sales tax invoice is part of document required for negociation.

After receipt of L/C by benifeciary the sales tax rate reduced from and S.E.D abolished by the govt.

Now in above case if the beneficiary issue the commercial invoices and sales tax as per new budgetory measures it will not conform to purchase order and L/c and the documents will get discripant and payment may not be made.

In openion of beneficary the L/C is not workable untill the ammendment are made in purchase order and L/c but the buyer is sticking on that it is workable because the L/C is irrevocable and the amount is decreasing not increasing and it also get the amendments delayed for months from the date of request by the beneficiary.

Please advice on the matter and what UCP 600 clause refers the above matter.