Saving clause protection for pre-existing import commitments preserved despite later shipment extension under an amended letter of credit

A pre-notice irrevocable letter of credit supporting a firm commercial commitment remained protected by the saving clause, because the later amendment merely extended the shipment period in response to abnormal circumstances and did not create a new contract or materially alter the underlying obligation. The Board treated that extension as consistent with bona fide commercial practice, so the import continued to qualify under the pre-existing commitment. The licence was directed to be accepted for the import if otherwise in order, and the fine was remitted in full.

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Issues: Whether the import was protected by the saving clause for firm commitments existing before the public notice, despite an extension of the shipment period under the letter of credit after the notice.

Analysis: On the date of the public notice, there was already an irrevocable letter of credit in force, opened before the notice and supporting a firm commercial commitment. The subsequent amendment only extended the shipment period in response to abnormal circumstances and did not change the basic contractual arrangement in any fundamental manner. The extension was treated as consistent with bona fide commercial practice and not as the creation of a new post-notice contract.

Conclusion: The import was held to fall within the saving clause, and the benefit of the prior commitment was able despite the later extension of shipment time.

Final Conclusion: The appeal succeeded, the licence was directed to be accepted for the import if otherwise in order, and the fine was remitted in full.

Ratio Decidendi: A post-notice amendment to a pre-notice irrevocable letter of credit that merely extends shipment time without fundamentally altering the commercial obligation does not destroy the protection available for a pre-existing firm commitment.

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