Concern has been expressed in the past in respect of the linking of the effectiveness of an amendment under a documentary credit to the payment of a fee.
UCP 600 sub-article 37 (c) clearly states that an amendment should not stipulate that the advising to a beneficiary is conditional upon the receipt of charges.
Furthermore, sub-article 37 (c) provides for the instructing bank to be liable for any commissions, fees, costs or expenses. This includes the issuing bank.
Even if charges are for the account of the beneficiary, the issuing bank (and hence, the applicant) remains liable for payment of the charges if they cannot be collected.
If applicable, banks should always clearly state their fee structure in the associated correspondence. However, it must be borne in mind that UCP cannot force banks to do so.