Our customer says if we want modifications the L/C terms that we have to pay for them and . . . If you normally would not pay these costs, under what extraordinary circumstances might you do so?

In a previous newsletter, you suggested that we should not release the order until the L/C has been amended to our satisfaction. Here is the twist: Our customer says if we want modifications the L/C terms that we have to pay for them. Does that make sense?

Answer: It is an unusual response. The buyer usually pays the cost to amend the letter of credit. Does it make sense? It makes great sense to the buyer if they can get you to pay for their L/C change charges.

Answer 2: If you made an error that resulted in the buyer arranging for a letter of credit to be issued incorrectly, you might agree to credit the cost of amending the letter of credit.