Letter of Credit refusal

After establishment of letter of credit by Indian importer, can foreign exporter refuse to accept the same. If so, under what clauses under ucp etc.

Please guide.

Replies (3)
Quick Summary
This discussion explores whether a foreign exporter can refuse a Letter of Credit (LC) once it has been established by an Indian importer. Generally, under UCP 600, an LC cannot be amended or cancelled without the agreement of all parties involved, including the issuing bank, confirming bank, and beneficiary. However, specific circumstances, potentially related to Article 38, might allow for refusal, though the beneficiary typically cannot refuse an LC unless there's a breach of these terms.

Article 10(a) of UCP 600 states that “except as otherwise provided in Article 38 a credit can neither been amended nor cancelled without agreement of the issuing bank, the confirming bank if any and the beneficiary.

How this can be cancelled is by breach of article 38 Article 38 - www.tradefinanceguru.net

Sir

 

My query is whether beneficiary of LC can refuse it.

Problem is that even after order acknowledgement, they are not approving draft lc and legally, we will not be able to hold them liable if delay in shipment, which will be counted from establishment of lc itself.

Please guide

Beneficiaries of LC cannot not unless there is a breach in article 38

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