国际贸易支付手段综述

ChapterSevenInternationalPaymentsandSettlementsExaminationandAmendmentofLetterofCreditDocumentsPreparationDocumentsPresentationforBankNegotiationTheMainContentsinThisChapterI.BriefIntroductionofInternationalPaymentsandSettlementsII.BasicMethodsofInternationalPaymentsandSettlementsIII.ImportanceofDocumentsinInternationalPaymentsandSettlementsIV.CreditInstrumentsV.LetterofCreditVI.DocumentarycollectionLearningObjectivesBytheendofthischapter,youshouldbeableto:--DefinetheInternationalpaymentsandsettlements--Explainthebasicpaymentmethods--DefinetheLetterofCreditandUCP500--DefinethecollectionandURC522--Definethedraftanditskinds--LearntomakedocumentsaccordinganL/CPreviewCase

Whenthetourists,merchants,delegationsorotherpeoplegoabroad,theyneedmoneytospend,tobuysomething,ortopayforvariousexpensesandchargesthere.Themostcommonmeansforthemtocarryfundsarecash,traveler'scheck,traveler'sletterofcreditandcreditcard.Doyouthinkthesearetheinternationalpaymentsandsettlements?I.BriefIntroductionofInternationalPaymentsandSettlements

Aseverybodyknows,mostinternationalpaymentsoriginatefromtransactionsintheworldtrade,theyaremoneytransfersasaresultofinternationalclearing.★Paymentsofvisibletrade★Paymentsofinvisibletrade★Paymentsoffinancialtransaction★Paymentsbetweengovernments★Otherspaymentssuchasoverseasremittances,educationalexpenses,etc.,DefinitionofInternationalPaymentsandSettlements

Internationalpaymentsandsettlementsarefinancialactivitiesconductedamongdifferentcountriesinwhichpaymentsareeffectedorfundsaretransferredfromonecountrytoanotherinordertosettleaccounts,debts,claims,etc.,emergedinthecourseofpolitical,economicorculturalcontactsamongthem.ClassificationsofInternationalPaymentsandSettlements1.Internationaltradesettlement2.Internationalnon-tradesettlementEvolutionsofInternationalPaymentsandSettlements1.Fromcashsettlementtono-cashsettlement2.Fromdirectpaymentmadebetweeninternationaltraderstopaymenteffectedthroughafinancialintermediary3.Frompaymentsundersimplepricetermstopaymentsundermorecomplexpriceterms4.InterneteraCharacteristicsofModernInternationalPaymentsandSettlements1.Transferofforeignexchangefundsandconveyofmessagesareverymuchfacilitated2.Vehiclecurrenciesaremorediversifiedthanbefore3.Greatimportanceisattachedtohighefficiencyonthepartoftheforeignexchangebanks4.InternationallendingisoftencombinedwithinternationalpaymentMajorPointsConcerningInternationalPaymentsandSettlements1.Internationalpaymentandsettlementmethods;2.Thefinancialinstrumentsthatfacilitateinternationalpaymentsandsettlements;3.Documentsusedininternationalpaymentsandsettlements;4.Thecurrenciesusedininternationalpaymentsandsettlements;5.Rulesandregulationsoninternationalpaymentsandsettlements.ClearingSystemsofInternationalInter-banks1.SWIFT:（世界银行远程通信协会）SocietyforWorldwideInter-bankFinancialTelecommunication2.CHIPS:（纽约银行同业电子清算系统）ClearingHouseInter-bankPaymentSystems3.CHAPS:（英国交换银行自动收付系统）ClearingHouseAutomatedPaymentSystems4.TARGETS（泛欧自动即时总额清算系统)Trans-EuropeAutomatedReal-timeGrossSettlementExpressTransferII.BasicMethodsofInternationalPaymentsandSettlementsSettlementsoncommercialcredit1.Cashinadvance2.Openaccount3.Remittance4.CollectionSettlementsonbankcredit1.Letterofcredit2.BankguaranteeCashinAdvance

Providesgreatestsecurityforsellerandgreatestriskforbuyer Thebuyersimplyprepaysthesellerpriortoshipmentofthegoods.ThistermofpaymentrequiresthatthebuyerhaveahighlevelofconfidenceintheabilityandwillingnessofthesellertodeliverthegoodsasorderedOpenAccount

Anarrangementbetweenthebuyerandsellerwherebythegoodsaremanufacturedanddeliveredbeforepaymentisrequired.Openaccountprovidesforpaymentatsomestatedspecificfuturedateandwithoutthebuyerissuinganynegotiableinstrumentevidencinghislegalcommitment.Thesellermusthaveabsolutetrustthathewillbepaidattheagreeddate.Itprovidestheleastriskforthebuyerandthegreatestriskfortheseller.MajorRemittanceMethods

Therearethreebasicwaysforabanktotransferfundsforitsclientfromthehomecountryabroad.

1.M/T:MailTransfer2.T/T:TelegraphicTransfer3.D/D:Banker’sDemandDraft4.SWIFT:SocietyforWorldwideInterbankFinancialTelecommunicationDocumentaryCollections Securityandalmostequalriskforbothbuyerandseller. Lesscostlyandeasiertousethanadocumentaryletterofcredit. Adocumentarycollectionissimilartointernationalcashondelivery(COD).Thesellershipsgoodstothebuyerbutsendsthedocuments,includingthebilloflading(titledocument),throughthebankswithinstructionstoreleasethemtothebuyeronlyuponpayment.Whenthebuyerobtainsthetitledocuments,hehastherighttotakeownershipoftheshipment.DocumentaryLetterofCredit

Securityandalmostequalriskforbothbuyerandseller Addedcosts(forthehandlingofthedocumentarycredit)tobuyer Adocumentaryletterofcreditisabank'swrittenpromisetopayaselleronbehalfofthebuyersolongasthesellercomplieswithpreciselydefinedtermsandconditionsspecifiedinthecredit.BankGuarantee Abankguaranteeisusedasaninstrumentforsecuringperformanceorpaymentespeciallyininternationalbusiness.Itisawrittenpromiseissuedbyabankattherequestofitscustomer,undertakingtomakepaymenttothebeneficiarywithinthelimitsofastatedsumofmoneyintheeventofdefaultbytheprincipal.Itmayalsobedefinedastheirrevocableobligationofabanktopayasumofmoneyintheeventofnon-performanceofacontractbytheprincipal.III.ImportanceofDocumentsinInternationalSettlements

1.Bankswillgenerallypayagainstdocuments2.Exporterswillonlyreceivepaymentbyhandlingovertherequireddocuments3.ImporterswillonlyrelyindocumentsSomeIssuesRelatingtoDocumentsundertheCredit1.Ambiguityastoissuersofdocuments2.Originals3.Authentication4.Signature5.Unspecifiedissuersorcontentsofdocuments6.IssuancedateClassificationsofDocuments1.FinancialdocumentsDraft,Promissorynote,Check2.CommercialdocumentsCommercialinvoice,Proformainvoice,Receiptinvoice,sampleinvoice,Consularinvoice,Customsinvoice,legalizedorvisaedinvoice3.ShippingdocumentsMarine/Oceanbilloflading,Non-negotiableoceanwaybill,rail-waybill,road-waybill,Airwaybill,Postparcelreceipt,Combined/multi-modaltransportdocument4.InsurancedocumentsInsurancepolicy,Insurancecertificate,Covernote,Combinedcertificate5.OtherdocumentsCertificateofOrigin,Healthcertificate,Inspectioncertificate,Export/Importlicense,Packinglist,WeightmemoIV.CreditInstruments Acreditinstrumentsisawrittenorprintedpaperbymeansofwhichfundsaretransferredformonepersontoanother.Creditinstrumentsmostcommonlyusedininternationalpaymentsandsettlementsarebillsofexchange,promissorynotesandchecks.Creditinstrumentsmayalsotakesuchformsastraveler’schecks,certificatesofdeposit,treasurybills,andtreasurybonds,etc..Theyarealsoknownasnegotiableinstruments.BillofExchange(Draft)

AccordingtotheBillofExchangeAct1882oftheUnitedKingdom,billofexchange,alsocalleddraft,is“anunconditionalorderinwriting(including“printed”or“typewritten”)addressedbyonepersontoanother,signedbythepersongivingit,requiringthepersontowhomitisaddressedtopayondemandoratafixedordeterminablefuturetimeasumcertaininmoneytoortotheorderofaspecifiedpersonortobearer.”PartiestotheDraft☆Drawer Adraweristhepersonwhodrawsabillofexchangeoracheckuponthedraweeforthepaymentofacertainamountofmoney.☆Drawee Adraweeisthepersonwhomtheinstructiontopaythemoneyisaddressedtoandwhomthebillisdrawnon.☆Payer Payeristhepersontomakepaymentinlawfulmoneyimmediatelyoratadeterminablefuturetimetoathirdparty.☆Payee Payeeisthepersontowhomthemoneyistobepaid.

Inthecontextofinternationaltrade,thedrawerandpayeeisusuallythesellerandthedraweeandpayerisusuallythebuyer.DrawerSellerPayeeDraweeBuyerPayerClassificationsofDraft☆Accordingtothedrawer:Bankdraft/banker’sdraftCommercialdraft/tradebill☆Accordingtotheaccepter: Trader’sacceptancebillBanker’sacceptancebill☆Accordingtothetenor:SightbillTimebill/usancebill☆Accordingtowhetherornottheshippingdocumentsareattached:CleanbillDocumentarybillBasicContentsofaDraft

InconformitywiththeBillsofExchangeAct1882oftheUnitedKingdomandtheUniformLawonBillsofExchangeandPromissoryNotes1930ofGeneva,abillofexchangemustfulfillthefollowingrequirements:★Theword“Exchange”;★Anunconditionalorderinwriting;★Nameandaddressofthedrawee;★Drawer’ssignature(s);★Dateandplaceofissue;★Nameorbusinessentityofthepayee;★Tenor;★Placeofpayment;★Amount凭Drawnunder___________________________信用证第号L/CNo______________________________日期年月日Dated________________________________按息付款Payablewithinterest@________%perannum号码汇票金额中国哈尔滨年月日No._________Exchangefor_______Harbin,China,_____________见票日后（本汇票之副本未付）付At____

_sightofthisFIRSTofExchange(Secondofexchangebeingunpaid)Paytotheorderof________或其指定人金额Thesumof_______________________________

______________此致To:__________________________________________________________

(officialsealandsignature)

1PromissoryNotes

Apromissorynoteisanunconditionalpromiseinwritingmadebythemaker(thedrawer)tothepayee(thedrawee)signedbythatmakerengagingtopayondemandoratafixedfuturetimeaspecifiedsumofmoneytoortotheorderofanamedpersonortothepayee(thebearer).SamplePromissoryNotePROMISSORYNOTE

NewYork,May20,2001US$9,000.00 Onthe20thSeptember2001wepromisetopayAAACo.Ltd.,ororderthesumofUSDninethousandonly.ForandonbehalfofCCCBANKLTD.(signed)Check

Acheckisanunconditionalorderinwritingmadebyoneperson(themaker)toabank(thedrawee)signedbythatmakerauthorizingthebanktopayondemandoratafixedordeterminablefuturetimeaspecifiedsumofmoneytoortotheorderofanamedpersonortobearer(thepayee).SampleCheckV.LetterofCreditCaseStudy:

AChinesecompanyconcludedasalescontracttosell15metrictonsofwildvegetablestoSouthKorea.Thepaymentmethodwasbyirrevocableletterofcredit.Afterdeliveringthegoods,theexporterpresentedthedocumentsspecifiedinthecreditwithoutanydiscrepancy.Withinthedesignatedperiod,theexporterstillreceivednopayment.ThentheChineseexportercheckeditthroughthenegotiatingbank,soonthebankgotreplyfromtheKoreaissuingbankclaimingthatourcustomerrefusedtopayasthereasonfornotpayingbacktotheChineseexporter.Isthattherightreasonforthebanknotpayingthemoney?Why?

DefinitionofLetterofCredit

Aletterofcreditisatoolorinstrumentofpayment,whichisguaranteedbyabank.Putitsimply:aletterofcreditisabank’swrittenpromisetopayaselleronbehalfofthebuyersolongasthesellercomplieswithpreciselydefinedtermsandconditionsspecifiedinthecredit. Adocumentarycreditprovidesalmostequalsecuritytoboththebuyerandtheseller.MainPartiestoAnL/C1.Theapplicant(Opener/Importer/Buyer)2.Thebeneficiary(Shipper/Exporter/Seller)3.TheIssuingbank(Issuer/Opening/Establishingbank)4.TheAdvisingbank(Notifyingbank)GeneralProceduresofL/CApplicant(Importer)Beneficiary(Exporter)Advisingbank(Negotiatingbank)Issuingbank(Reimbursingbank)BuyerSellerNegotiationContractGoodsMaincontentinanL/C1.Nameandaddressoftheissuingbank.2.Typeofthecredit.3.Nameandaddressofthebeneficiary.4.Amountofthecreditanditcurrency.5.Expirydateofthecreditanditsplacetobeexpired.6.Nameandaddressoftheapplicant.7.L/Cnumberanddateofissue.8.Draweranddraweeaswellastenorofthedraft.9.Description,quantity,unitprice,specification,priceterms,packing,shippingmark,etc.10.Fulldetailsofthedocumentstobepresented.11.Partialshipmentpermitted/notpermitted.12.Transshipmentallowed/notallowed.13.Portofshipmentandportofdischarge.14.Latestdateforshipmentand15.Instructionstotheadvisingbank,negotiatingbankorpayingbank.16.Otherspecialtermsandconditions.17.Theundertakingclauseoftheissuingbank.18.Theindication“ThiscreditissubjecttotheUniformCustomsandPracticeforDocumentaryCredits(1993revision).InternationalChamberofCommercePublicationNo500.”19.Theguaranteeclauseoftheissuingbank20.Termsondiscrepancy.MaintypesofL/C

AccordingtoUCP500,Letterofcreditcanbeclassifiedintotwoparts:standardLetterofcreditandspecialLetterofcredit.Thereareanumberofdifferenttypesofstandardandspecialdocumentarycredits.Eachtypecontainsavarietyoffeaturesdesignatedtomeetthedifferentneedsofbuyers,sellers,orthebanksinvolvedwhichcontainsmoreorlessdifferentprocedures.StandardLetterofCredit

1.DocumentaryL/Cvs.CleanL/C2.RevocableL/Cvs.IrrevocableDocumentaryL/C3.ConfirmedL/Cvs.UnconfirmedL/C4.SightL/Cvs.UsanceL/C5.DeferredPaymentCredit6.PaymentCreditsSpecializedLetterofCredit

1.RevolvingL/Cvs.Non-RevolvingL/C

2.Transferablevs.Non-TransferableL/C

3.BacktoBackL/C

4.ReciprocalL/C

5.Stand-byL/C

6.RedClauseCredit

OtherIssuesofL/C

1.Amendment2.ThedraftunderL/C3.Softclause

SWIFTFORMAT

Beforereadingthesampleletterofcredit,let’sreviewtheformatofSWIFT.SampleLetterofCreditMTS700ISSUEOFADOCUMENTARYCREDITSEQUENCEOFTOTAL*27:1/1FORMOFDOC.CREDIT*40A:IRREVOCABLEDOC.CREDITNUMBER*20:111222AZDATEOFISSUE31C:030730EXPIRY*31D:DATE030915PLACEDALIANAPPLICANTBANK51A:ROYALBANKOFCANADAVANCOUVERCANADAAPPLICANT*50:VANCOUVERI&ECO.LTDNO.100FLOWERSTREETVANCOUVER,CANADABENEFICIARY*59:DALIANSPACETRADINGCOMPANYNO.707SIHAIROADDALIANCHINAAMOUNT*32B:CURRENCYUSDAMOUNT46980.00AVAILABLEWITH/BY*41D:ANYBANKBYNEGOTIATIONDRAFTAT*42C:SIGHTFOR100PCTINVOICEVALUEDRAWEE42A:ROYALBANKOFCANADAVANCOUVER,CANADAPARTIALSHIPMENTS43P:NOTALLOWEDTRANSSHIPMENT43T:NOTALLOWEDLOADINGINCHARGE44A:DALIANPORTCHINAFORTRANSPORTTO44B:VANCOUVERCANADALATESTDATEOFSHIP44C:030830DESCRIPT.OFGOODS45A:CHINESECERAMICDINNERWARETERMSOFDELIVERY

CIFVANCOUVERTOTALUSD46980.00

DOCUMENTSREQUIRED46A:+SIGNEDORIGINALCOMMERCIALINVOICEIN2COPIESINDICATINGL/CNO.ANDCONTRACTNO.03ZCW003+3/3SETOFCLEANONBOARDOCEANBILLSOFLADINGMADEOUTTOORDERWITH2NON-NEGOTIABLECOPIESANDBLANKENDORSEDMARKEDFREIGHTPREPAIDNOTIFYINGAPPLICANT+SIGNEDORIGINALPACKINGLIST/WEIGHTMEMOIN2COPIESISSUEDBYBENEFICIARYSHOWINGQUANTITY/GROSSANDNETWEIGHTFOREACHPACKAGEANDPACKINGCONDITIONSASCALLEDFORBYTHEL/C+2/2SETOFINSURANCEPOLICYORCERTIFICATEENDORSEDINBLANKWITH2COPIESCOVERINGOCEANMARINETRANSPORTATIONALLRISKSANDWARRISKSFOR110PCTINVOICEVALUESHOWINGCLAIMSPAYABLEINCANADAINCURRENCYOFTHEDRAFT+BENEFICIARY’SCERTIFICATECOPYOFFAXDISPATCHEDTOAPPLICANTWITHIN72HOURSAFTERSHIPMENTINDICATINGCONTRACTNO.,L/CNO.,NAMEOFVESSELDETAILSOFSHIPMENT.+BENEFICIARY’SCERTIFICATECERTIFYINGTHATTWONON-NEGOTIABLECOPIESOFB/L,INVOICEANDP/LHAVEBEENSENTTOAPPLICANTAFTERSHIPMENT.+DECLARATIONOFNON-WOODPACKINGMATERIAL.+ONESETOFEXTRAPHOTOCOPYOFORIGINALB/LANDORIGINALINVOICE.ADDITIONALCOND.47A:+FOREACHDOCUMENTARYDISCREPANCY(IES)UNDERTHISCREDIT,AFEEOFUSD60.00WILLBEDEDUCTEDFROMTHEWHOLEPROCEEDS.DETAILSOFCHARGES71B:ALLBANKINGCHARGESOUTSIDETHEISSUINGBANKINCLUDINGTHOSEOFREIBURSEMENTBANKAREFORACCOUNTOFBENEFICIARY.PRESENTATIONPERIOD48:DOCUMENTSTOBEPRESENTEDWITHIN15DAYSAFTERTHEISSUANCEOFTHESHIPPINGDOCUMENTSBUTWITHINTHEVALIDITYOFTHECREDIT.CONFIRMATION*49:WITHOUTINSTRUCTION78:+ALLDOCUMENTSTOBEFORWARDEDTOROYALBANKOFCANADA,VANCOUVERCANADAINONECOVERBYDHLUNLESSOTHERWISSESTATEDABOVE.+WEHEREBYUNDERTAKETHATUPONRECEIPTOFTHEORIGINALDOCUMENTSINCOMPLIANCEWITHTHETERMSOFTHISCREDIT.THEDRAFTSDRAWNUNDERWILLBEDULYHONORED.+THISCREDITISSUBJECTTOU.C.P.FORDOCUMENTARYCREDIT,1993REVISIONICCPNO.500.“ADVISETHROUGH”57D:THEBANKOFCHINA,DALIANBRANCHDisadvantagesofL/C1.Thehighcost:TherearequiteanumberofcommissionsandfeesthatbankswillchargeinL/Copening,advising,amendment,negotiation,etc.2.Time-consuming:Becauseaccuracyofdocumentationisamust.Theoretically,evenamisplacedapostrophecancausedelayinpaymentalthoughbanksusuallywillnotrejectpaymentfordocumentarydiscrepanciesthatwillnotmateriallyaffectthetransaction.HowtoDecideIftheL/CShouldBeUsed

Naturally,importersoftenprefernottouseL/C'sduetotheirdisadvantages.ThenexportersshouldconsiderthefollowingpointstodecideiftheL/Cshouldbeused.1.Corporatecreditpolicyandthecompany'sabilitytoabsorbrisks2.Creditstandingoftheimporter3.Politicalenvironmentintheimportingcountry4.Currentmarketconditionsandpaymenttermsofferedbycompetition5.Typeofmerchandiseandthevalueoftheshipment6.Typeofexchangecontrolsintheimportingcountryandthebuyer'sabilitytogetforeignexchange

HowtoHandleDocumentaryDiscrepancies

1.CorrectthediscrepanciesandresubmitthedocumentsanddraftwithinthevalidityoftheL/C2.Requesttheimportertowaivediscrepanciesiftheydonotmateriallyaffecttheshipment3.Provideadocumentarydiscrepancyguaranteeif,unwillingtowaitforthewaiver,theexporterisconfidentthattheimporterwillacceptthediscrepancy4.SubmitthedocumentsoncollectionbasisVI.DocumentarycollectionsCaseStudy

AChineseexporteronceexportedsomesoybeantoaforeigncountry.Thetwopartiesagreedonpaymentbycollection.Whenthegoodsarrivedattheportofdestination,theimporterfoundthatthemarketpriceofsoybeanhaddroppedalot.Whentheexporterurgedtheimportertotakethegoodsandmakepayment,theimportertriedtodelay,sayingthegoodswerenotasspecifiedinthecontract.Finallytheexporterhadtocutthepriceofthegoodstosettlethepayment.Whatpaymentmethodcanbeemployedtoreducetherisk?DefinitionofCollection

Simplywecandefinethatadocumentarycollectionisanorderbythesellertohisbanktocollectpaymentfromthebuyerinexchangeforthetransferofdocumentsthatenabletheholdertotakepossessionofthegoods. Asdefinedinsub-Article2(b)ofURC522(UniformRulesforCollection522byICCin1995),“collection”meansthehandlingofsettlementbybanksofexportersinaccordancewithinstructionsreceivedfromtheexporter,inorderto:(1)obtainpaymentand/oracceptance,or(2)deliverdocumentsagainstpaymentand/oracceptance,or(3)deliverdocumentsonothertermsandconditions.PartiesInvolvedinCollection1.The“principal”(drawer/exporter/seller)thecreditorofthebuyer2.The“remittingbank”3.The“collectingbank”/The“presentingbank”4.The“drawee”(payer/importer/buyer)thedebtorofthesellerTypesofCollection1.Cleancollection2.Documentarycollection:D/A:DocumentsagainstAcceptanceD/P:DocumentsagainstPaymentD/PsightD/Paftersight

GeneralProceduresofCollectionPayer/drawee(Importer)Principal/drawer(Exporter)RemittingbankCollectingbank(Presentingbank)BuyerSellerNegotiationContractGoodsD/PD/ADocumentsAndorderTheRisksofDocumentaryCollectionforSellers1.Buyercannotpayinsomecasessuchasbankruptcy.2.Whenpricedecreases,buyermightrefuse,withexcusesperhaps,topayortopayalowerpriceorevenclaimforcompensation.3.Ifimportlicenseand/orforeignexchangehavenotyetbeenobtainedbybuyerwhenthegoodsarriveatportofdestination,itisthenpossiblethatthegoodswillnotbeallowedtobeimported,thatthegoodsaresubjecttoconfiscationorafine,orthatpaymentfortheshipmentmightbemadeindomesticcurrencyoftheimportingcountry.4.Buyermighttakeadvantageofseller'signoranceofthelocalcommercialcustom,regulationorlawandcheatattransactions.Forexample,therecanbeacustomsclearancetimelimitafterwhichthegoodswillbeconfiscatedorapenaltywillbeimposed.AndinsomecountriessuchasPeruandBolivia,D/PaftersightwillbeinterpretedthesamewayasD/A.Ifabuyerwantstocheat,hecansignacontractwithD/Paftersightbutneverpaysafterhegetsthedocuments.5.Theauthoritiesofsomeimportingcountriesmightnotbeverytrustworthy.Theymightconfiscatetheimportshipmentwithanexcuseandthenselltheshipmenttotheoriginalbuyer.TheRisksofDocumentaryCollectionforBuyers1.Whencollectionisused,buyershavetorelytotallyonseller'sreputationandabilitytodeliverhigh-qualitygoods.Asbankshavenoresponsibilitytoexaminethedetailsofdocuments,shipmentmightnotbemadeinaccordancewiththesalescontract.2.AbuyersometimescannotgetdocumentsafterhisacceptanceofadraftwithD/Paftersightbecause,aftertheacceptance,thesellermighthavesoldthedocumentstoanotherbuyeratahigherprice,butthebuyermightneverthelessberequestedtopaythedraftduetohisacceptance.VII.RulesofInternationalPaymentsandSettlementsForthepurposesofunifyingthebankingpractices,theInternationalChamberofCommercerealizedthenecessityofcoordinatingtheinternationalbusinessbydraftingandissuingsomeuniformrules.UCP600TheUniformCustomsandPracticeforDocumentaryCredit(UCP)istheinternationallyrecognizedcodificationofrulesunifyingbankingpracticeregardingdocumentarycredits.UCPshallapplytoallDocumentaryCredits(includingtotheextenttowhichtheymaybeapplicable,StandbyLetter(s)ofCredit)wheretheyareincorporatedintothetextofthecredit.Theyarebindingonallpartiesthereto,unlessotherwiseexpresslystipulatedinthecredit.TheUCPwasdevelopedbyaworkingcommitteeattachedtotheInternationalChamberofCommerceinParis.Itisrevisedandupdatedfromtime-to-time;thecurrentvalidversionisICCpublicationNo.600.URC522

TheUniformRulesforCollection(URC)aretheinternationallyrecognizedcodificationofrulesthatunifybankingpracticeregardingcollectionoperationsfordraftsandfordocumentarycollections.URCarenotincorporatedinnationalorinternationallaw,butbecomebindingonallpartiesbecauseallbankauthoritieswillstatethatthecollectionissubjecttoURC.TheUniformRulesforCollectionsweredevelopedbytheICCinParis.Itisrevisedandupdatedfromtime-to-time;thecurrentvalidversionisICCpublicationNo.522.U