ICC Uni Customs and Practice for Documentary Credits.ppt

iccuniformcustomsandpracticefordocumentarycredits 600 ucp 1 2019 12 24 commentsfromdraftinggroup general 1stcompletedraft 1 onitsface 25countriesvotedforremovalwith12disagreeing referenceto onitsface havebeendeletedinallplacesexceptforthearticleentitled standardforexaminationofdocuments itisfeltbythedraftinggroupthatsuchreferenceiswarrantedinthisplacesoastomaintainthepositionthatisrecognisedbythecourtsofwhatinformation pageetc thedocumentcheckerisexpectedtoreview toremovecompletelywouldrequiretheinclusionofasimilarphrasesoastoexplainthatnochangeinphilosophyhasbeenmade 511 basedexclusivelyuponthebanker sexaminationofthedocument andnotuponsomeoneelse sunderstanding inotherwords thereisamethodforexaminationofdocumentsunderthed cwhichispeculiartobankers thismethodattemptstofindwhethercertainstatement termsorconditionsappearonthedocument thephrase ontheirface isnottobeinterpretedasmeaningeitherthe face orthe reverse ofadocument 2 2019 12 24 2 reasonabletime 36countries outof37 votedforremovalofthesewords majorityofcountriesvotedfor5daysasthenewmaximumperiod 3 partiesorbanks 27countries outof37 votedforretentionofbanksinsteadofparties thedrafthasbeenamendedinallplacestoreflectthis 4 isbp allcountriesindicatedthevalueofisbpandthatasfaraspossibleshouldberetainedinthepublicationasopposedtothenewrules 5 deferredpayments 27countries outof37 votedforaclauseallowingfordiscountofthedeferredpaymentundertaking 6 article30ucp500 30countries outof37 votedforremovalofthisarticle referencetorevocablecreditshasbeenremoved thisdecisionisbasedonthecurrentlackofusageofrevocablecredits abankchoosingtoissuearevocablecreditmustincorporatespecifictermsinthecredittoreflectthisfact draft2 3 2019 12 24 introducedtheterm honour tobetteralignthedeferredpaymentwithanacceptancecredit theconceptofhonorrelatestotheobligationsoftheissuingandconfirmingbanks draft2 majorityfeedbackfromtheconsultinggrouptothequestionastowhethernegotiationshouldremainintheucpwasthatitshould negotiationshouldremainoutsidethedefinitionofhonour asitisamethodoffinance draft2 theexpression bank includes butisnotlimitedto entitiestraditionallyknownasabankorotherfinancialinstitution draft2 inoperativecredit draft2 hubei inallotherarticlesthedraftinggrouphassoughtnottousetermslike unlessotherwiseexpresslystipulatedinthecredit sincethisisageneralprinciplecontainedinarticle1andinordertodiscourageclauseswhichmayhaveaneffectcontrarytotheessenceoftheucp draft3 4 2019 12 24 deleteducp500articlesart5 instructiontoissue amendcreditsart6 revocablev irrevocablecreditsissuanceofrevocablecreditsisamatterforindividualcreditandlanguageshouldbeprovidedinindividualrevocablecreditsastotheirconditionsofoperationart8 revocationofacreditart12 incompleteorunclearinstructionsart30 transportdocumentsissuedbyfreightforwardersart33 freightpayable prepaidtransportdocuments 5 2019 12 24 foreword thisrevisionoftheuniformcustomsandpracticefordocumentarycredits commonlycalled ucp isthesixthrevisionoftherulessincetheywerefirstpromulgatedin1933 itisthefruitofmorethanthreeyearsofworkbytheinternationalchamberofcommerce s icc commissiononbankingtechniqueandpractice icc whichwasestablishedin1919 hadasitsprimaryobjectivefacilitatingtheflowofinternationaltradeatatimewhennationalismandprotectionismposedseriousthreatstotheworldtradingsystem itwasinthatspiritthattheucpwerefirstintroduced toalleviatetheconfusioncausedbyindividualcountries promotingtheirownnationalrulesonletterofcreditpractice theobjective sinceattained wastocreateasetofcontractualrulesthatwouldestablishuniformityinthatpractice sothatpractitionerswouldnothavetocopewithaplethoraofoftenconflictingnationalregulations theuniversalacceptanceoftheucpbypractitionersincountrieswithwidelydivergenteconomicandjudicialsystemsisatestamenttotherules success 6 2019 12 24 itisimportanttorecallthattheucprepresenttheworkofaprivateinternationalorganization notagovernmentalbody sinceitsinception icchasinsistedonthecentralroleofself regulationinbusinesspractice theserules formulatedentirelybyexpertsintheprivatesector havevalidatedthatapproach theucpremainthemostsuccessfulsetofprivaterulesfortradeeverdeveloped arangeofindividualsandgroupscontributedtothecurrentrevision whichisentitleducp600 theseincludetheucpdraftinggroup whichsiftedthroughmorethan5000individualcommentsbeforearrivingatthisconsensustext theucpconsultinggroup consistingofmembersfrommorethan25countries whichservedastheadvisorybodyreactingtoandproposingchangestothevariousdrafts themorethan400membersoftheicccommissiononbankingtechniqueandpracticewhomadepertinentsuggestionsforchangesinthetext andiccnationalcommitteesworldwidewhichtookanactiveroleinconsolidatingcommentsfromtheirmembers iccalsoexpressesitsgratitudetopractitionersinthetransportandinsuranceindustries whoseperceptivesuggestionshonedthefinaldraft 7 2019 12 24 introduction inmay2003 theinternationalchamberofcommerceauthorizedtheicccommissiononbankingtechniqueandpractice bankingcommission tobeginarevisionoftheuniformcustomsandpracticefordocumentarycredits iccpublication500 aswithotherrevisions thegeneralobjectivewastoaddressdevelopmentsinthebanking transportandinsuranceindustries additionally therewasaneedtolookatthelanguageandstyleusedintheucptoremovewordingthatcouldleadtoinconsistentapplicationandinterpretation whenworkontherevisionstarted anumberofglobalsurveysindicatedthat becauseofdiscrepancies approximately70 ofdocumentspresentedunderlettersofcreditwerebeingrejectedonfirstpresentation thisobviouslyhad andcontinuestohave anegativeeffectontheletterofcreditbeingseenasameansofpaymentand 8 2019 12 24 ifunchecked couldhaveseriousimplicationsformaintainingorincreasingitsmarketshareasarecognizedmeansofsettlementininternationaltrade theintroductionbybanksofadiscrepancyfeehashighlightedtheimportanceofthisissue especiallywhentheunderlyingdiscrepancieshavebeenfoundtobedubiousorunsound whilstthenumberofcasesinvolvinglitigationhasnotgrownduringthelifetimeofucp500 theintroductionoftheicc sdocumentarycreditdisputeresolutionexpertiserules docdex inoctober1997 subsequentlyrevisedinmarch2002 hasresultedinmorethan60casesbeingdecided toaddresstheseandotherconcerns thebankingcommissionestablishedadraftinggrouptoreviseucp500 itwasalsodecidedtocreateasecondgroup knownastheconsultinggroup toreviewandadviseonearlydraftssubmittedbythedraftinggroup thetransportindustryexperts ablyco chairedbyjohnturnbull deputygeneralmanager sumitomomitsuibankingcorporationeuropeltd londonandcarlodininni adviser italianbankersassociation rome theconsultinggroupprovidedvaluableinputtothedraftinggrouppriortoreleaseofdrafttextstoiccnationalcommittees 9 2019 12 24 thedraftinggroupbeganthereviewprocessbyanalyzingthecontentoftheofficialopinionsissuedbythebankingcommissionunderucp500 some500opinionswerereviewedtoassesswhethertheissuesinvolvedwarrantedachangein anadditiontooradeletionofanyucparticle inaddition considerationwasgiventothecontentofthefourpositionpapersissuedbythecommissioninseptember1994 thetwodecisionsissuedbythecommission concerningtheintroductionoftheeuroandthedeterminationofwhatconstitutedanoriginaldocumentunderucp500sub article20 b andthedecisionsissuedindocdexcases duringtherevisionprocess noticewastakenoftheconsiderableworkthathadbeencompletedincreatingtheinternationalstandardbankingpracticefortheexaminationofdocumentsunderdocumentarycredits isbp iccpublication645 thispublicationhasevolvedintoanecessarycompaniontotheucpfordeterminingcomplianceofdocumentswiththetermsoflettersofcredit itistheexpectationofthedraftinggroupandthebankingcommissionthattheapplicationoftheprinciplescontainedintheisbp includingsubsequentrevisionsthereof willcontinueduringthetimeucp600isinforce 10 2019 12 24 atthetimeucp600isimplemented therewillbeanupdatedversionoftheisbptobringitscontentsinlinewiththesubstanceandstyleofthenewrules thefourpositionpapersissuedinseptember1994wereissuedsubjecttotheirapplicationunderucp500 therefore theywillnotbeapplicableunderucp600 theessenceofthedecisioncoveringthedeterminationofanoriginaldocumenthasbeenincorporatedintothetextofucp600 theoutcomeofthedocdexcaseswereinvariablybasedonexistingiccbankingcommissionopinionsandthereforecontainednospecificissuesthatrequiredaddressingintheserules oneofthestructuralchangestotheucpistheintroductionofarticlescoveringdefinitions article2 andinterpretations article3 inprovidingdefinitionsofrolesplayedbybanksandthemeaningofspecifictermsandevents ucp600avoidsthenecessityofrepetitivetexttoexplaintheirinterpretationandapplication similarly thearticlecoveringinterpretationsaimstotaketheambiguityoutofvagueorunclearlanguagethatappearsinlettersofcreditandtoprovideadefinitiveelucidationofothercharacteristicsoftheucporthecredit 11 2019 12 24 duringthecourseofthelastthreeyears iccnationalcommitteeswerecanvassedonarangeofissuestodeterminetheirpreferencesonalternativetextssubmittedbythedraftinggroup theresultsofthisexerciseandtheconsiderableinputfromnationalcommitteesonindividualitemsinthetextisreflectedinthecontentofucp600 thedraftinggroupconsidered notonlythecurrentpracticerelativetothedocumentarycredit butalsotriedtoenvisagethefutureevolutionofthatpractice thisrevisionoftheucprepresentstheculminationofoverthreeyearsofextensiveanalysis review debateandcompromiseamongstthevariousmembersofthedraftinggroup themembersofthebankingcommissionandtherespectiveiccnationalcommittees valuablecommenthasalsobeenreceivedfromtheicccommissionontransportandlogistics thecommissiononcommerciallawandpracticeandthecommitteeoninsurance 12 2019 12 24 itisnotappropriateforthispublicationtoprovideanexplanationastowhyanarticlehasbeenwordedinsuchawayorwhatisintendedbyitsincorporationintotherules forthoseinterestedinunderstandingtherationaleandinterpretationofthearticlesofucp600 thisinformationwillbefoundinthecommentarytotherules iccpublication601 whichrepresentsthedraftinggroup sviews onbehalfofthedraftinggroupiwouldliketoextendourdeepappreciationtothemembersoftheconsultinggroup iccnationalcommitteesandmembersofthebankingcommissionfortheirprofessionalcommentsandtheirconstructiveparticipationinthisprocess specialthanksareduetothemembersofthedraftinggroupandtheirinstitutions whoarelistedbelowinalphabeticalorder 13 2019 12 24 contents article1 applicationofucparticle2definitionsarticle3interpretationsarticle4creditsv contractsarticle5documentsv goods servicesorperformancearticle6availability expirydateandplaceforpresentationarticle7issuingbankundertakingarticle8confirmingbankundertakingarticle9advisingofcreditsandamendmentsarticle10amendmentsarticle11teletransmittedandpre advisedcreditsandamendmentsarticle12nominationarticle13bank to bankreimbursementarrangements 14 2019 12 24 article14standardforexaminationofdocumentsarticle15complyingpresentationarticle16discrepantdocuments waiverandnoticearticle17originaldocumentsandcopiesarticle18commercialinvoicearticle19transportdocumentcoveringatleasttwodifferentmodesoftransportarticle20billofladingarticle21non negotiableseawaybillarticle22charterpartybillofladingarticle23airtransportdocumentarticle24road railorinlandwaterwaytransportdocumentsarticle25courierreceipt postreceiptorcertificateofpostingarticle26 ondeck shipper sloadandcount saidbyshippertocontain andchargesadditionaltofreight 15 2019 12 24 article27cleantransportdocumentarticle28insurancedocumentandcoveragearticle29extensionofexpirydateorlastdayforpresentationarticle30toleranceincreditamount quantityandunitpricesarticle31partialdrawingsorshipmentsarticle32instalmentdrawingsorshipmentsarticle33hoursofpresentationarticle34disclaimeroneffectivenessofdocumentsarticle35disclaimerontransmissionandtranslationarticle36forcemajeurearticle37disclaimerforactsofaninstructedpartyarticle38transferablecreditsarticle39assignmentofproceeds 16 2019 12 24 article1applicationofucp ucp500art1 theuniformcustomsandpracticefordocumentarycredits 2007revision iccpublicationno 600 ucp arerulesthatapplytoanydocumentarycredit credit including totheextenttowhichtheymaybeapplicable anystandbyletterofcredit whenthetextofthecreditexpresslyindicatesthatitissubjecttotheserules theyarebindingonallpartiestheretounlessexpresslymodifiedorexcludedbythecredit ucp500art1 shallapplytoalldocumentarycredits includingtotheextenttowhichtheymaybeapplicable standbyletter s ofcredit wheretheyareincorporatedintothetextofthecredit draft3thepreviousclauseregardingelectronicsystemswasnotaddedtothetextbasedonswiftalone however uponfurtherdiscussionwithswift andcommentsreceived thepremisehasbeenchangedtoreflectthatineachcreditexpressreferencetotheucpmustbemade itisanticipatedthatswiftguidelineswillbechangedtoreflectthisviewpointpriortotheimplementationofthereviseducp 17 2019 12 24 article2definitions forthepurposeoftheserules advisingbankmeansthebankthatadvisesthecreditattherequestoftheissuingbank applicantmeansthepartyonwhoserequestthecreditisissued bankingdaymeansadayonwhichabankisregularlyopenattheplaceatwhichanactsubjecttotheserulesistobeperformed 银行日 bankingday 是指在有关行为履行地有关银行通常开业的一天 isp981 09 beneficiarymeansthepartyinwhosefavouracreditisissued complyingpresentationmeansapresentationthatisinaccordancewiththetermsandconditionsofthecredit theapplicableprovisionsoftheserulesandinternationalstandardbankingpractice isp983 01 ucp500art13a complianceofthestipulateddocumentsontheirfacewiththetermsandconditionsofthecredit shallbedeterminedbyinternationalbakingpracticeasreflectedinthesearticles notrestricttoisbp 18 2019 12 24 confirmationmeansadefiniteundertakingoftheconfirmingbank inadditiontothatoftheissuingbank tohonourornegotiateacomplyingpresentation confirmingbankmeansthebankthataddsitsconfirmationtoacreditupontheissuingbank sauthorizationorrequest creditmeansanyarrangement howevernamedordescribed thatisirrevocableandtherebyconstitutesadefiniteundertakingoftheissuingbanktohonouracomplyingpresentation ucp500art2 honourmeans a topayatsightifthecreditisavailablebysight hubei payment b toincuradeferredpaymentundertakingandpayatmaturityifthecreditisavailablebydeferredpayment c toacceptabillofexchange draft drawnbythebeneficiaryandpayatmaturityifthecreditisavailablebyacceptance 19 2019 12 24 negotiationmeansthepurchasebythenominatedbankofdrafts drawnonabankotherthanthenominatedbank and ordocumentsunderacomplyingpresentation byadvancingoragreeingtoadvancefundstothebeneficiaryonorbeforethebankingdayonwhichreimbursementisduetothenominatedbank ucp500art10b ucp500art10b negotiationmeansgivingvaluefordraft s and ordocument s bythebankauthorisedtonegotiate iccpositionpaperno 2 givingofvalue makingimmediatepayment or undertakinganobligationtomakepayment garycollyer negotiationmaybeeffectedatanypointupuntilissuingbankfulfilsitsobligationtoreimburseonduedate nominatedbankmeansthebankwithwhichthecreditisavailableoranybankinthecaseofacreditavailablewithanybank presentationmeanseitherthedeliveryofdocumentsunderacredittotheissuingbankornominatedbankorthedocumentssodelivered isp981 09 presentermeansabeneficiary bankorotherpartythatmakesapresentation isp981 09 issuingbankmeansthebankthatissuesacreditattherequestofanapplicantoronitsownbehalf 20 2019 12 24 article3interpretations forthepurposeoftheserules whereapplicable wordsinthesingularincludethepluralandinthepluralincludethesingular acreditisirrevocableevenifthereisnoindicationtothateffect ucp500art6 adocumentmaybesignedbyhandwriting facsimilesignature perforatedsignature stamp symboloranyothermechanicalorelectronicmethodofauthentication ucp500art20b arequirementforadocumenttobelegalized visaed certifiedorsimilarwillbesatisfiedbyanysignature mark stamporlabelonthedocumentwhichappearstosatisfythatrequirement ucp500art20d branchesofabankindifferentcountriesareconsideredtobeseparatebanks ucp500art2 21 2019 12 24 termssuchas firstclass wellknown qualified independent official competent or local usedtodescribetheissuerofadocumentallow aspresented anyissuerexceptthebeneficiarytoissuethatdocument ucp500art20a unlessrequiredtobeusedinadocument wordssuchas prompt immediately or assoonaspossible willbedisregarded isbpparagraph23ucp500art46bregardingshipment theexpression onorabout orsimilarwillbeinterpretedasastipulationthataneventistooccurduringaperiodoffivecalendardaysbeforeuntilfivecalendardaysafterthespecifieddate bothstartandenddatesincluded ucp500art46cregardingshipment thewords to until till from and between whenusedtodetermineaperiodofshipmentincludethedateordatesmentioned andthewords before and after excludethedatementioned ucp500art47b 22 2019 12 24 thewords from and after whenusedtodetermineamaturitydateexcludethedatementioned isbpparagraph45d theterms firsthalf and secondhalf ofamonthshallbeconstruedrespectivelyasthe1sttothe15thandthe16thtothelastdayofthemonth alldatesinclusive ucp500art47cregardingshipment theterms beginning middle and end ofamonthshallbeconstruedrespectivelyasthe1sttothe10th the11thtothe20thandthe21sttothelastdayofthemonth alldatesinclusive ucp500art47dregardingshipment 23 2019 12 24 article4creditsv contracts ucp500art3 acreditbyitsnatureisaseparatetransactionfromthesaleorothercontractonwhichitmaybebased banksareinnowayconcernedwithorboundbysuchcontract evenifanyreferencewhatsoevertoitisincludedinthecredit consequently theundertakingofabanktohonour tonegotiateortofulfilanyotherobligationunderthecreditisnotsubjecttoclaimsordefencesbytheapplicantresultingfromitsrelationshipswiththeissuingbankorthebeneficiary abeneficiarycaninnocaseavailitselfofthecontractualrelationshipsexistingbetweenbanksorbetweentheapplicantandtheissuingbank b anissuingbankshoulddiscourageanyattemptbytheapplicanttoinclude asanintegralpartofthecredit copiesoftheunderlyingcontract proformainvoiceandthelike additionalsentenceaddedtoreinforcethedesirefornoexcessivedetail draft3 24 2019 12 24 article5documentsv goods servicesorperformance ucp500art4 banksdealwithdocumentsandnotwithgoods servicesorperformancetowhichthedocumentsmayrelate ucp500art4 increditoperationsallpartiesconcerneddealwith changeatthebeginningofthisarticletoreflectthatitisbanksandnotallpartiesthatdealwithdocumentsetc 1stcompletedraft 25 2019 12 24 article6availability expirydateandplacefo