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Amendments to documentary credits

Regulations/Policies
Bags and Luggage Bags
From United Arab Emirates
To Canada
195 views / 0 experts
Kerim A.
Oct 15, 2020

Why are amendments to documentary credits referred to the supplier for acceptance?

1 answer

David W.
Oct 15, 2020

Documentary credits are irrevocable, that is, they cannot be amended without approval from all parties. A supplier may not be comfortable manufacturing goods to meet a specific order if the documentary credit representing payment for that order could be amended or cancelled without their knowledge or acceptance. Once a documentary credit is issued, it cannot be assumed that amendments can or will be accepted by the supplier.

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