Who can cancel or make changes to a letter of credit once it has been issued?

The issuing bank is the only entity that has the authority to cancel or make changes to a letter of credit once it has been issued. This is because the bank is the party that guarantees payment to the exporter when certain conditions outlined in the letter of credit are fulfilled. Since the bank bears the financial risk and controls the terms of the credit, any amendments or cancellations must be initiated and carried out by them.

For other parties involved in the transaction, such as the exporter, consignee, or transportation carrier, they do not have the rights to alter the terms of the letter of credit. While the exporter may have requests or suggestions regarding changes, the final decision rests with the issuing bank. The consignee is primarily the recipient of the goods and does not manage the financial instrument itself. Similarly, the transportation carrier's role is related to the movement of the goods, not the financial agreements tied to those goods, meaning they also lack authority over the letter of credit.