The number of articles reduced from 49 to 39 in ucp 600. The revised ucp includes a definitions article designed to clarify the meaning of key terms, a changed practice for giving a notice of refusal and other modifications you will need to know. Conditions stated in the lc not describing which document to reflect the requirement will be deemed not stated and will be disregarded. Lc monitor trade services updatenewsletter, issue 2february 2008, p. Is there a conflict with regard to the signing capacity of a charter party bill. Exporter guide to documentary credits under ucp 600 may be in a position to advise the reasons to you. It explains how the practices articulated in ucp 600 are applied by documentary practitioners. The notice required in sub article 16 c must be given by telecommunication or, if that is not possible, by other expeditious means no later than the close of the fifth banking day following the day of presentation. Ucp 600 articles article 3 to article 7 icc ucp, ucp 600, ucp 600 articles, ucpdc ucp 600 article 3 interpretations for the purpose of these rules.
Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit. Pdf will the ucp 600 provide solutions to letter of credit. Article 16f of ucp 600 states that if the bank fails to serve an article 16 notice in accordance with article 16 of ucp 600 or otherwise comply with article 16 of ucp 600, the bank will be precluded from claiming that the documents presented were discrepant and therefore will be obliged to honour that discrepant presentation. This article relates to the goods or services covered by the documents presented. When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate. Contrary to article 32 of the ucp, this credit remains valid for subsequent installments despite any shipment or drawing not made within the period allowed. Aug 08, 2018 paper documents and electronic presentation.
When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a single notice to that effect to. Comments to commentary on ucp 600 best trade solution. Ucp 600 sixth 6th revision since its inception by the. If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfill the function of. Hence 30c can be applied when partial shipments is allowed provided all the other conditions stated in the table is satisfied. Consequences of missing the five day deadline article 16 f ucp 600. International standard banking practice 92 application of ucp 600 article 20 if a credit requires presentation of a bill of lading marine, ocean or porttoport or similar covering sea shipment only, ucp 600 article 20 is applicable. Home icc ucp ucp 600 ucp 600 articles ucpdc ucp 600 articles article 3 to article 7. Commentary on ucp 600 is the latest version of iccs universally used rules on documentary credits. The obligation of the issuing bank depends solely on the documents presented. Ucp 600, article 2 defines honour as i to pay at sight if the credit is available by sight payment ii. Documents must not be dated earlier than the date of the issuance of this credit.
Ucp 600 article 28 insurance document and coverage a an. It is general consensus that ucp 600 will not be revised any time soon. It is a significant improvement to the wording and structure of the ucp document as it defines key terms, creates consistency between clauses and improves clarity of interpretation. This publication and the ucp should be read in their entirety and not in isolation.
Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the beneficiary. Members of the drafting group that developed the new ucp have produced an articlebyarticle commentary on the rules that came into effect on july 1, 2007. Third, ucp 600 article 14a standard for examination of documents. An insurance document, such as an insurance policy, an insurance certificate or a declaration under an open cover, must appear to be issued and signed by an insurance company, an underwriter or their agents or their proxies. Articlebyarticle analysis by the ucp 600 drafting group, icc publication no. Ucp 600 a19g documents acceptable as presented provided presented within the validity of the lc and within the max amount of the lc, the documents will not be examined for compliance under the credit or ucp 600 including whether they are presented in the required number of originals or copies 14. It is clear however that ucp 600 provides a change in practice since position paper 3 is not applicable under ucp 600. This entry was posted in ucp articles and tagged article 30, ucp600. When looking at the ucp 600, it is important to look at the market environment and general notes about the current guidelines. Ucp stands for uniform customs and practice and the ucp 600 is the latest set of standards that came into effect on 1 july 2007. A complying presentation is one that meets the requirements of the credit and the applicable provisions of the ucp 600 and international standard banking practice ucp 600 article 2. These newly added articles are article 2 definitions and article 3 interpretations. Ucp 600 exclusions in perspective by kim christensen introduction one of the main topics being discussed in the lc community since the implementation date of the ucp 600 is the socalled exclusions i. International standard banking practice for the examination.
Icc uniform customs and practice for documentary credits article 1 application of ucp pasal 1 the uniform costums and practice for documentary credits 2007 revision, icc publication no. The bank as a confirming bank the confirmation of a documentary credit is governed by article 8 of ucp 600. The 39 articles of ucp 600 are a comprehensive and practical working. Ucp600 exclusions in perspective best trade solution. Data in document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that. Article 14 of the ucp 500 has been replaced by article 16 of the ucp 600.
Ucp 600 is prepared by international chamber of commerces icc commission on banking technique and practice. Third, ucp 600 article 14 a standard for examination of documents. Ucp 600 article 14 standard for examination of documents. Pdf it is generally accepted that international trade transactions carry inherently.
Exporter guide to documentary credits under ucp 600 introduction with the implementation of ucp 600 a little over 2 years ago, this is an opportune time. Original documents and copies ucp 600 article 14 ucp 600 article 18 ucp 600 article 19 ucp 600 article 20 ucp 600 article 21 ucp 600 article 23 ucp 600 article 24 ucp 600 article 26 ucp 600 article 28 ucp 600 articles with explanation ucp 600 book pdf ucp 600 pdf ucp. Isbp ucp 600 information introduction since the approval of international standard banking practice isbp by the icc banking commission in 2002, icc publication no. Ucp 600 article 14 to article 16 icc ucp, lc rules, letter of credit, ucp 600, ucp 600 articles, ucpdc ucp 600 article 14 standard for examination of documents a. The background to the ucp 600 articles mentioned above is that the dc is dependent. Commentary on ucp 600 icc knowledge 2 go international. Article 14 discrepant documents and notice article 21 unspecified issuers of contents of documents article 23 marineocean bills of lading article 37 commercial invoices. As a means of creating a relationship between the ucp and isbp, the introduction to ucp 600, states. Article 3 provides some interpretations for documents and article 14 discusses examining them while 17 does list some of the requirements for considering a document an original or a copy isp 98 rule 109 document means a draft, demand, document of title, investment security, invoice. Some of the reasons for this and general notes about the ucp are outlined below.
Icc issues recommendations to reform global trade 16042020 the icc recommendations reforming the multilateral rulesbased trading system. Where applicable, words in the singular include the plural a. The principle is that the buyer cannot refuse to pay based on the condition of the goods. The stipulated rules are enlisted below, any condition specifically mentioned in the lc terms will usually supersede.
These terms are included for emphasis and their restatement does not indicate that they represent an attempt to vary the other applicable provisions of ucp600 article 1. To comply with ucp 600 article 20, a bill of lading must appear. Uniform customs and practices for documentary credits, icc publication number 600. Ucp 600 and the opinions and decisions of the icc banking commission. The requirement in the credit is vague and clearly ambiguous. Please feel free to go to the back of the room and grab a cup of coffee or tea if you are so inclined. Ucp 600 article 3 interpretations for the purpose of these rules. The outcomes we want for people and planet, provide an outcomesbased approach to reforming international trade with the overriding objective of making trade work for people and planet. Advising bank means the bank that advises the credit at the request of the issuing bank applicant means the party on whose request the credit is issued banking day means a day on which a bank is regularly open at the place at which an act subject to these rules is to be performed. Indeed, if you are anyone involved in international trade, then you should learn more about ucp 600. Subarticle 14h is strange since the content of the article is identical to ucp 500.
In order to reach a standard meaning of terms used in the rules and prevent unnecessary repetitions two new articles have been added to the ucp 600. As a result, the scope provisions of ucp600 article 1 should be read in conjunction with any terms in. The banks ability to confirm any credit will be subject to there being an appropriate confirmation facility in place for the issuing. The bank has a maximum of 5 banking days following the day of presentation to determine if a presentation is complying. During the revision process, notice was taken of the considerable work that had been completed in creating the international standard banking practice for the examination of documents under documentary credits isbp, icc publication 645. Ucp 600 subarticle 14 a states that a bank must examine a presentation on the basis of the documents alone. Certificate issue of the shipping line according ucp 600 article 14 d. Ucp 600 article 28 insurance document and coverage a. However ucp 600 and isbp 745 have stipulated certain conditions for an invoice to be accepted as a clean document for processing under the said letter of credit. Icc uniform customs and practice for documentary credits. Addendum to isbp 745 december 2020 clickdimensions. Definitions this is a new article not found in ucp 500. Home icc ucp lc rules letter of credit ucp 600 ucp 600 articles ucpdc ucp 600 article 14 to article 16. Commercial invoice ucp 600 article 18 trade samaritan.
Article 1 application of ucp the uniform customs and practice for documentary credits, 2007 revision, icc publication no. Ucp 600 article 14 standard for examination of documents a. Ucp 600 are the latest revision of the uniform customs and practice that govern the operation of letters of. This does not, however, extend the period mentioned in subarticle 14 b. Uniform rules for documentary credits icc knowledge 2 go. Thank you for joining us today for this panel discussion on ucp 600. Original documents and copies ucp 600 article 14 ucp 600 article 18 ucp 600 article 19 ucp 600 article 20 ucp 600 article 21 ucp 600 article 23 ucp 600 article 24 ucp 600 article 26 ucp 600 article 28 ucp 600 articles with explanation ucp 600 book pdf ucp 600 pdf ucp 600 pdf 2018.
Ucp600 article 1 application of ucp the uniform customs and practice for documentary credits, 2007 revision, icc publication no. The shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit. Ucp 600by raymond cox qc and niamh cleary, fountain court chambers based on a prior version by alan ward, rowansbank associatesrelated contentthis note provides an overview of the uniform customs and practice for documentary credits ucp, 2007 revision, icc publication no. Uniform customs and practice institute of international banking. It is not a matter for the icc banking commission to define or determine geographical areas or ranges. A nominated bank acting on its nomination, a confirming. Ucp 600 article 14 to article 16 icc ucp, lc rules, letter of credit, ucp 600, ucp 600 articles, ucpdc. Commercial invoice ucp 600 article 18 by pallavi deshpande.