How to write an application for revocation of LC letter of credit

According to UCP600, Clause 3 Definition: It is expressly stated"A letter of credit is irrevocable, even if it is not indicated in the letter of credit".There is no longer one in the UCP600"Undoable"Conception.

If you have opened a letter of credit under the terms of UCP500 or UCP400. Is your letter of credit revocable? In the case of a non-revocable letter of credit, there is only one circumstance in which it can be revoked, and that is to file a cancellation before it reaches the beneficiary. FYI.

It is better not to write this kind of revocation letter, if you want to pay for the L/C issuance fee and revocation fee and the telegraph fee, etc., you can write this revocation letter.

Generally, the letter of credit does not need to be revoked, as long as the validity period of the letter of credit expires, the letter of credit will be automatically invalidated.

You can delay the time for some reason until the end of the validity period.

Revoke the letter of credit swift seems to have a special format of the letter you go to the bank to consult directly.

Since the enactment of UCP600, there has been no voidable letter of credit.

For an irrevocable letter of credit, if both the beneficiary and the applicant have negotiated and are ready to revoke the letter of credit, then the operation is very simple, as long as the beneficiary returns the original letter of credit to the advising bank, explains in writing that he does not accept the letter of credit, and pays the telegraph fee for the advising bank to notify the issuing bank that the letter of credit is not accepted, then the advising bank acts accordingly - by sending a telegram to the issuing bank: "The letter of credit numbered by your bank is not accepted by the beneficiary, And the beneficiary has returned the original letter of credit to our bank (the advising bank), and our bank has done the refund processing to verify the letter of credit." In this way, the irrevocable letter of credit is thus "returned" - equivalent to "revoked", but not revoked in the real sense but "returned" - this concept should not be confused!

Then, of course, the advising bank first sends a message rejecting the letter of credit to the issuing bank, and the non-issuing bank has to send a telegram asking the advising bank whether it can be revoked - because the irrevocable letter of credit itself is "irrevocable", how can the issuing bank ask if it can be revoked??? Isn't it a joke?

Reply to additional questions:

The difference between a revocable and an irrevocable letter of credit is that a revocable letter of credit does not require the consent of the beneficiary at the time of revocation, while an irrevocable letter of credit cannot be revoked in any case - only the beneficiary does not accept the letter of credit and "returns" the letter of credit - see the answer to the main question.

With regard to the issue of L/C revocation, UCP600 does not have detailed operational provisions as it does not fall within its jurisdiction.

The normal procedure for revoking the letter of credit is that the applicant submits an application to the issuing bank, the issuing bank sends a telegram to the advising bank requesting revocation, and the advising bank receives the telegram and feeds back to the beneficiary, if the beneficiary agrees, issues a written opinion agreeing to revoke the letter of credit, and the advising bank sends a report to the issuing bank according to the beneficiary's opinion agreeing to revoke the letter of credit, and after the issuing bank receives the telegram, the letter of credit can be declared revoked.

The matter of sending a letter can be discussed, not dead. It depends on how you coordinate with your bank and your customers. I suggest that the issuing bank can first send a letter to the advising bank, stating that the issuer requests to revoke the L/C, and the advising bank is requested to confirm its consent.

The beneficiary then issues a statement to the notifying bank stating that it agrees to the revocation, and finally the notifying bank confirms the revocation. The rest will be easy.

UCP600 does not have an issue with the revocation of letters of credit, which is not under its jurisdiction.

Article 2 of UCP600 clearly states that "a letter of credit is an irrevocable arrangement", which means that all letters of credit issued in accordance with UCP600 are irrevocable letters of credit. However, this does not mean that once a letter of credit has been opened, it can never be withdrawn.

The revocation of a letter of credit must be agreed by the basic parties, i.e., the issuing bank, the beneficiary and the confirming bank (if any), all of which are indispensable.

Withdrawal process: the applicant and the beneficiary agree to withdraw the letter of credit through negotiation--- the applicant submits an application for withdrawal to the issuing bank--- the issuing bank sends a telegram to the advising bank requesting revocation--- the advising bank receives the telegram and feedback to the beneficiary--- beneficiary agrees to revoke the L/C--- the advising bank sends a report to the issuing bank agreeing to revoke the L/C--- the issuing bank notifies the applicant that the L/C has been revoked after receiving the report, and the deposit or the amount can be refunded. (If it is a confirmed letter of credit, the consent of the confirming bank must be obtained).

Write an application for revocation of punishment (at least 500 words) and hand it to Landa, and it will be done in less than half a month, hehe.

Because you entrust the issuing bank to open an "irrevocable letter of credit", you need to write an "application for cancellation of the letter of credit" and send it to the advising bank by the issuing bank, and the beneficiary of the letter of credit must be confirmed and agreed to the revocation by the advising bank.

The beneficiary (seller) must first issue a revocation letter to revoke the L/C, and then you will issue a revocation letter, and with the consent of the issuing bank, the L/C can be revoked.

Withdrawing an application is as simple as stating the reason.

There are two kinds, one is the modification of the letter of credit, and the amount is changed to 0; The other is to send a letter to entrust the issuing bank to send a report and wait for the beneficiary's reply. But it is best to contact the beneficiary to send a report, so that the operation is fast, you agree, and then the issuing bank sends a report to indicate that the letter of credit is revoked. If you send a report, you have to wait for a reply.

Withdraw the application and write: because... Reason, our company applies for the revocation of the letter of credit, please assist your bank to handle the relevant matters, the relevant responsibilities and expenses shall be borne by our company.

However, I suggest using the first one, amending the letter of credit to 0 and asking for a reply as soon as possible, which is simple and convenient. It also does not involve the issue of whether an irrevocable letter of credit is revocable.

Ask your notification line and they will tell you what procedures you need.

Generally, the letter of credit does not have to be revoked, as long as the letter of credit expires, it will be automatically revoked. If the beneficiary proposes to cancel the letter of credit, the issuer will inevitably require the beneficiary to bear the costs of levy and revocation, as well as telegraph fees.

A letter of credit that has already been issued cannot be revoked and can only be revoked with the consent of the beneficiary.

Go to the front desk of the bank and ask, they will give you the relevant template.

1。Ask the bank for a blank letter of credit amendment application.

2。Take out the original evidence and write it against it.

3。If it is an increase in the amount, the bank may require you to increase the margin and guarantee.

4。In the case of other clauses, such as "aaaaaa" in clause 47a of the letter of credit, it could be written like this:

47a:'bbbbb'i/o'aaaaa'.

Here i o means instead of.

Or write: 47a:'aaaaa' amend to 'bbbbb'.

5。Indicate who pays the amendment fee, whether you pay it or the beneficiary.

6。Check whether there is any contradiction with the terms of the letter of credit, and whether there are other places to be changed, such as the unit price is changed, and the total price must also be changed.

7。Handed over to the bank, ok.

It should be noted that you can change the certificate, and the beneficiary can not accept it. As long as the documents submitted by him are in accordance with the original letter of credit, it is fine, and there is no need to notify him in advance. The above is an international letter of credit.

If it is a domestic letter of credit, the procedure is the same, but the certificate of the beneficiary's consent needs to be submitted when changing the certificate.

The letter of credit amendment application is the terms of your letter of credit, the seller does not accept you to modify, apply to your issuing bank, each bank has a fixed format.

If the issuing bank has a fixed format of the application for revisation, you can mark the places that need to be modified one by one, and you need to compare the original L/C with the places that need to be modified.

Write down the reason for the revocation and then apply for the revocation.

Or the simplest, find the bank and ask for a format, just copy it. The key is to have an official seal, and the other big mistakes are just a formality.