Amendment Charges refer to the handling fees charged by banks to applicants during the performance of foreign trade contracts or letters of credit when one party requests modifications to the terms of an issued letter of credit. Common scenarios include: amending the L/C amount, validity period, shipment date, document requirements, etc. These charges are usually borne by the party requesting the amendment; if the amendment is caused by the beneficiary, the beneficiary may bear the cost. Notes: Amendments must be agreed upon by all relevant parties (issuing bank, confirming bank, beneficiary) to take effect; amendment charges may vary depending on the number of amendments and the complexity of the content, and different banks have different fee standards. Unlike 'Discrepancy Fee', which arises from documents not conforming to L/C terms; and unlike 'Transfer Charges', which involve L/C transfer. Foreign trade practitioners should specify the party responsible for amendment charges in the contract to avoid disputes.
📝 Examples
1. Because the buyer requested to extend the L/C shipment date from May 31 to June 15, the issuing bank charged a $50 amendment fee, which should be borne by the buyer. (Note: The buyer requested the amendment, so the fee is borne by the buyer.)
2. If multiple amendments are caused by the beneficiary's submitted documents not conforming to the L/C, the resulting amendment charges are usually paid by the beneficiary, unless otherwise agreed in the contract. (Note: The amendment is caused by the beneficiary, so the fee is attributed to the beneficiary.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner