An issue on uniform customs and practice for documentary credits. Thus, the revocable concept is no longer covered under ucp 600 and it remained with the ucp 500. Some 1115% of international trade utilizes letters of. By virtue of article 3of the ucp 600, the above category of a revocable credit has been repealed. Uniform rules for documentary credits icc knowledge 2 go. It is inevitable that traditional trade instruments will, over time, inexorably move towards a mixed ecosystem. Mentor 600 contains over 12 hours of online training and is designed to be a fast track to proficiency in letter of credit work. It is the most comprehensive online training available in letters of credit and ucp 600. You can increase your letter of credit comprehension by reading reliable ucp 600 educational ebooks. The terms of a credit are independent of the underlying transaction even if a credit expressly refers to that transaction. For almost 80 years, the ucp600 uniform customs and practice for documentary credits have governed letter of credit transactions worldwide. This publication and the ucp should be read in their entirety and not in isolation. The uniform customs and practice for documentary credits ucp is a set of rules on the issuance and use of letters of credit.
Ucp 600 rules changing letter of credit business for international traders. Commentary on ucp 600, articlebyarticle analysis by the ucp. By a unanimous vote of 91 to 0, the icc banking commission on october 25, 2006 approved ucp 600, iccs revised rules on documentary credits and how to use a letter of credit. Complying presentation is a new term, under 500, we usually used the documents to be presented in compliance, and the new one is more concision.
Practice for letters of credit ucp issued by icc, publication no. New online training in letters of credit and ucp 600 icc. An accompaniment to the ucp 600 is the international standard banking practice for the examination of documents under documentary credits isbp, icc publication 745. To avoid unnecessary costs, delays and disputes in the examination of. Icc uniform customs and practice for documentary credits ucp. Revised versions were issued by the icc in 1951, 1962, 1974, 1983 and 1993. Similar to ucp600 and international standby practices 98 isp98, urdg 758 is not law. In 500, the art 2 gave the mean of credit and four types lc, and in art 6 the irrevocable and revocable lc were listed at the same. Credits that are issued and governed by ucp 600 will be interpreted in line with the. Oct 25, 2006 this revision of the uniform customs and practice for documentary credits commonly called ucp 600 is the sixth revision of the rules since they were first promulgated in 1933.
In describing ucp 600 subarticle 14e description of goods in documents other than the commercial invoice it is stated that. Ucp 600 entered into force on july 1, 2007 and contains substantive changes to the existing rules that all international business professionals need to know. 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. A guide to the instruments and techniques of australian. These are the eighth revision of the incoterm rules. Ucp 600 and letters of credit trade finance global. The 39 articles of ucp 600 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit. Everyday low prices and free delivery on eligible orders. Ucp 600, supposedly have simpler and clearer wording, to reduce ambiguity and differences in. Out of interest, the first version of ucp, publication no. Ucp 600 uniform customs and practice for documentary credits 2007 revision. Considered the most successful set of private rules for trade ever developed, ucp 600 contains important new provisions in. Iccs new rules on documentary credits now available icc. Uniform customs and practice for documentary credits kindle.
Ucp600 article 1 is itself the scope provision of ucp600 and is so entitled. The international chamber of commerce icc introduced the uniform customs and. At the time ucp 600 is implemented, there will be an updated version of the isbp to bring its contents in line with the substance and style of the new rules. Icc is pleased to announce the publication of the 2007 revision of uniform customs and practice for documentary credits, ucp 600, icc publication no. Used by letter of credit practitioners worldwide, uniform customs and practice for documentary credits ucp are the most successful private rules for trade ever developed. Banking practice for the examination of documents under ucp 600. It merely sets out the roles and responsibilities of all parties at each key stage of the life cycle of a demand guarantee and reflects best practice in the guarantee business.
The four position papers issued in september 1994 were issued subject to their application under ucp 500. Introduction this revision of the uniform customs and practice for documentary credits commonly called ucp is the sixth revision of the rules since they were first promulgated in 1933. Ucp 600 does not refer to, require or imply that linkage is necessary between or among documents if this is correct then this is clearly a change in practice. Reglas y usos uniformes ruu 600 o ucp 600 aplicables a. Considered the most successful set of private rules for trade ever developed, ucp 600 contains important new provisions in the fields of transport, insurance and compliance. The ucp 600, 2007 version can be purchased from the icc online bookstore purpose. Commentary on ucp 600 is the latest version of iccs universally used rules on documentary credits. Knowledge and skills that have traditionally taken years of experience to acquire can now be attained in a matter of days. Commentary on ucp 600, which reflects the groups personal views, explains the rationale behind the changes in the rules and clarifies the general principles that underlie them. In may 2003, the international chamber of commerce authorized the icc commission on banking. While ucp600 article 1 indicates that the effect of. Commentary on ucp 600 icc knowledge 2 go international. Isbp ucp 600 information isbp paragraph 1 to 5 the application and issuance of the credit 1.
However, it is interesting to note that despite article 3 of the ucp 600, revocable lc can still be issued or allowed to be. Bankers, traders, lawyers, transporters, academics and all who deal with letter of credit transactions worldwide will refer to ucp 600 on a daily basis. Ucp 600 subarticle 37 d provides for the applicant to indemnify a bank against all obligations and responsibilities imposed by foreign laws and usages. Download ucp 600 vis a vis letter of credit file in pdf format. Pdf ucp 600 rules changing letter of credit business for.
Murdoch university electronic journal of law 2011 182 4 interpretations are not entirely new but the introduction of the definitions has ensured clarity and simplicity in the application of the ucp. Ucp 600 contains important new provisions in the fields of transport, insurance and compliance, which will form the basis of letter of credit transactions for years to come. The complete ucp international chamber of commerce. The ucp 600, or the revised rules on documentary credits letters of credits of the international chamber of commerce icc, more commonly known as uniform customs and practice for documentary credits ucp, continues to remain a vital component in international trade establishing the conditions under which the majority of the banks operate in. View our updated 2020 guide on the 39 articles of ucp 600. Uniform customs and practice for documentary credits. Commentary on ucp 600, articlebyarticle analysis by the ucp 600 drafting group book. The ucp 600 guide is designed to help you understand the implications of ucp on documentary letters of credit and general and provides an update from the previous ucp 500. This revision of the uniform customs and practice for documentary credits commonly called ucp 600 is the sixth revision of the rules since they were first promulgated in 1933.
On 1 january 2011, the iccs incoterms 2010 come into force. Ucp 600 ebooks that every exporter and importer should read. The ucp is utilized by bankers and commercial parties in more than 175 countries in trade finance. Readers can therefore obtain answers quickly without substantial research.
Ucp 600 vis a vis letter of credit a must for importers. The ucp is an internationally recognized and globally accepted set of rules governing the use of letters of credit. Iccs new rules on documentary credits, which are used for letter of credit transactions worldwide, were approved by the icc commission on banking technique and practice on 25 october 2006. The ucp 600 are the latest revision of the uniform customs and practice for documentary credits. It assists with understanding whether a document complies with the terms of letters of credit. It explains how the practices articulated in ucp 600 are applied by documentary practitioners. The ucp was first issued by the international chamber of commerce. Where the following terms are used in the ucp, for the purposes of applying the ucp to an electronic record presented under an eucp credit, the term.
For the purposes of these articles, the expressions documentary credits and standby letters of credit hereinafter referred to as credits, mean any arrangement, however named or described, whereby a bank the issuing bank acting at the request and on the instructions of a customer the applicant or on its own behalf. Buy ucp 600 by international chamber of commerce isbn. Iccs new online training services for documentary credits and ucp 600, developed with technology partner coastline solutions, are becoming increasingly popular within the international trade community for keeping up with the latest changes in letter of credit and trade finance practice. Cases in my view, the best way to interpret and explain rules, legal principles and the application of ucp 600 is through the use of case. Jan 01, 2007 by a unanimous vote of 91 to 0, the icc banking commission on october 25, 2006 approved ucp 600, iccs revised rules on documentary credits and how to use a letter of credit. 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. Oct 30, 2011 buy ucp 600 by international chamber of commerce isbn. This valuable collection contains the full text of the seven versions of the ucp that have appeared since 1933, as well as their antecedents, which date back to 1920.
1172 103 537 743 1695 1095 394 73 88 1082 609 825 1121 1513 351 1041 552 1677 1350 14 1461 247 256 1582 93 179 294 789 1419 311 1260 1090 1366 1528 1081 131 886 729 1425 775 336 1197 304 688 209 573