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.
Jayanta Bandyopadhyay (229 Points)
09 December 2021After 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.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 09 December 2021
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
Jayanta Bandyopadhyay
(229 Points)
Replied 09 December 2021
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
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 09 December 2021
Beneficiaries of LC cannot not unless there is a breach in article 38
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