It is expected that letters of credit issued after that date will be subject to the ucp 600. 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 to reinforce some of the principles that should be adopted by exporters when handling a documentary credit and the subsequent presentation of documents. Where the following terms are used in the ucp, for the purposes of applying the ucp to an electronic record. Users handbook for documentary credits under ucp 600. Ucp600 article 1 application of ucp the uniform customs and practice for documentary credits, 2007 revision, icc publication no. Users handbook for documentary credits under ucp 600 is an introduction to users of letters of credits as well as to sellers and buyers who seek to increase their access to crossborder markets. An issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out, even if it has taken the. Key differences for standbys is the ucp appropriate for standby letters of credit. The shipment schedule rule art 32 has always been hotly contested, but continues to endure in successive revisions of the ucp, under the rationale that failure on the part. Home icc ucp lc rules letter of credit ucp 600 ucp 600 articles ucpdc ucp 600 article 8 to 10. The ucp 500 has not been repealed and as such and in principle, parties could still opt for the ucp. Uniform customs and practice for documentary credits 1993. 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.
Selected issues rosmawani chehashimi senior lecturer. Ucp 600 rules changing letter of credit business for international traders. It requires that a notice be sent by the bank to the presenter an article 16 notice stating that there is a discrepancy and, consequently, the credit will not be honoured or negotiated. There are risks and lost opportunities in using ucp500 or ucp600 for standbys. 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. Ucp 600 by icc the uniform customs practices for documentary credits or foreign trade. Ucp 600 marcela pizarro amigo claudio barroilhet aceve scielo. What is the effect of excluding article 37c of ucp600 the forum is dedicated to all who deals with lcs. To comply with ucp 600 article 20, a bill of lading must appear. It is extremely rare for dcs not to be issued subject to the ucp. The 2007 revision is known as ucp 600 icc uniform customs and practice for documentary credits icc publication no. Because of the great advantage of rules, many standbys are issued subject to the ucp.
The publication international standard banking practice for the examination of documents under documentary credits, 2007 revision for ucp 600. Pdf aspectos introductorios al credito documentario. Ucp 600 the latest revision of ucp is the sixth revision of the rules since they were first promulgated in 1933. Ucp 600 article 8 confirming bank undertaking honor if the. Uniform rules for documentary credits icc knowledge 2 go. Ucp 600 article 37 disclaimer for acts of an instructed. Pdf ucp 600 rules changing letter of credit business. Article pdf available in international journal of economics and business research 12 january 2009 with 14,936. The reason that not all standbys are issued subject to rules is the ucp itself.
What is the effect of excluding article 37c of ucp600. Ucp 600 article 37 disclaimer for acts of an instructed party a. For more than 85 years, the uniform customs and practice for documentary credits ucp the international chamber of commerces rules on documentary credits have governed letter of credit transactions worldwide. International standard banking practice isbp your manual to on how use the ucp and. Delivering access to a wide range of reference materials from the world business organization to promote innovative research, learning and more.
In its sole discretion, approach the applicant for a waiver of the discrepancies. It is the fruit of more than three years of work by the iccs commission on banking technique and practice. Thrntpoe eleva r visions of ucp 600 article 16 of ucp 600 establishes the practice for banks dealing with discrepant documents presented under a credit. University malaya, malaysia abstract the uniform customs and practice ucp is the primary source for letter of credit lc transaction. Ucp600 judgment the implications for letters of credit the court of appeals judgment demonstrates that the court will interpret the ucp 600 in a way which reflects its underlying aims and purposes as well as international banking and trading practice. Hfw ucp600 judgment the implications for letters of. 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. Ucp500 1993 uniform customs and practices for documentary credits 1993 a.
Obligations of various parties to lc applicant to lc buyer importer importer is responsible to make payment to issuing bank in terms of lc application, if all the documents and terms of lc are in compliance. My view although this is a grey area is that in the given case, the lc is not deemed to be available by instalment shipments, because different items are prescribed to be shipped within different time frames. Ucp 600 article 8 to 10 icc ucp, lc rules, letter of credit, ucp 600, ucp 600. A nominated bank acting on its nomination, a confirming bank, if any, and the issuing. Treatment of discrepancies ucp 600 article 16 deals with discrepant documents, waiver and notice. Ucp 600 key issues the ucp 600 became available for incorporation into letters of credit from 1st july 2007 and replaces ucp 500. Commercial letters of credit are the lifeblood of international trade. A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation. Please share your experiences, problems and opinions with us. 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. New revisions of the ucp were implemented in 1974, 1983, 1994 and latest in 2007.