An LC that is not defined for automatic closure can be closed any time after its Expiry Date.

To avail against a closed LC, you have to reopen it. This occurs when the LC comes in for negotiation after it has been closed. The reopening of the LC will put back the outstanding liability and availability for the LC.

To reopen a closed LC, you should have defined the event ‘ROPN’ for the product under which the LC is processed. For this event, you should have ideally defined the same entries for the LC outstanding amount and the liability, as you would for the opening (issue or advice) of an LC. You can levy a charge for reopening an LC.

• Procedure for Reopening LC
  This topic describes the systematic instruction to reopen the closed LC.