FOREWORD This revision of the Uniform Customs Practice for Documentary Credits (commonly called “UCP”) is the sixth revision of the rules since they were first promulgated in 1933.It is the fruit of more than three years of work by the International Chamber of Commerce’s (ICC) Commission on Banking Technique Practice. ICC which was established in 1919 had as its primary objective facilitating the flow of international trade at a time when nationalism protectionism posed serious threats to the world trading system. It was in that spirit that the UCP were first introduced – to alleviate the confusion caused by individual countries’ promoting their own national rules on letter of credit practice. The objective since attained was to create a set of contractual rules that would establish uniformity in that practice so that practitioners would not have to cope with a plethora of often conflicting national regulations. The universal acceptance of the UCP by practitioners in countries with widely divergent economic judicial systems is a testament to the rules’ success. It is important to recall that the UCP represent the work of a private international organization not a governmental body. Since its inception ICC has insisted on the central role of self-regulation in business practice. These rules formulated entirely by experts in the private sector have validated that approach. The UCP remain the most successful set of private rules for trade ever developed. A range of individuals groups contributed to the current revision which is entitled UCP 600. These include the UCP Drafting Group which sifted through more than 5000 individual comments before arriving at this consensus text; the UCP Consulting Groupconsisting of members more than 25 countries which served as the advisory body reacting to proposing changes to the various drafts; the more than 400 members of the ICC Commission on Banking Technique Practice who made ertinent suggestions for changes in the text; ICC national committees worldwide which took an active role in consolidating comments their members. ICC also expresses its gratitude to practitioners in the transport Insurance industries whose perceptive suggestions honed the final draft. Guy Sebban Secretary General International Chamber of Commerce
INTRODUCTION In May 2003 the International Chamber of Commerce authorized the ICC Commission on Banking Technique Practice (Banking Commission) to begin a revision of the Uniform Customs Practice for Documentary Credits ICC Publication 500. As with other revisions the general objective was to address developments in the banking transport insurance industries. Additionally there was a need to look at the language style used in the UCP to remove wording that could lead to inconsistent application interpretation. When work on the revision started a number of global surveys indicated that because of discrepancies approximately 70% of documents presented under letters of credit were being rejected on first presentation. This obviously had continues to have a negative effect on the letter of credit being seen as a means of payment if unchecked could have serious implications for maintainingincreasing its market share as a recognized means of settlement in international trade. The introduction by banks of a discrepancy fee has highlighted the importance of this issue especially when the underlying discrepancies have been found to be dubiousunsound. Whilst the number of cases involving litigation has not grown during the lifetime of UCP 500 the introduction of the ICC’s Documentary Credit Dispute Resolution Expertise Rules (DOCDEX) in October 1997 (subsequently revised in March 2002) has resulted in more than 60 cases being decided. To address these other concerns the Banking Commission established a Drafting Group to revise UCP 500. It was also decided to create a second group known as the Consulting Group to review advise on early drafts submitted by the Drafting Group.The Consulting Group made up of over 40 individuals 26 countries consisted of banking transport industry experts. Ably co-chaired by John Turnbull Deputy General Manager Sumitomo Mitsui Banking Corporation Europe Ltd London Carlo Di Ninni Adviser Italian Bankers Association Rome the Consulting Group provided valuable input to the Drafting Group prior to release of draft texts to ICC national committees.The Drafting Group began the review process by analyzing the content of the official Opinions issued by the Banking Commission under UCP 500. Some 500 Opinions were reviewed to assess whether the issues involved warranted a change in an addition toa deletion of any UCP article. In addition consideration was given to the content of thefour Position Papers issued by the Commission in September 1994 the two Decisions issued by the Commission (concerning the introduction of the euro the determination of what constituted an original document under UCP 500 sub-article 20(b) the decisions issued in DOCDEX cases. During the revision process notice was taken of the considerable work that had been completed in creating the International Stard Banking Practice for the Examination of Documents under Documentary Credits (ISBP) ICC Publication 645. This publication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit. It is the expectation of the Drafting Group the Banking Commission that the application of the principles contained in the ISBP including subsequent revisions thereof will continue during the time UCP 600 is in force. At the time UCP 600 is implemented there will be an d version of the ISBP to bring its contents in line with the substance style of the new rules. The four Position Papers issued in September 1994 were issued subject to their application under UCP 500; therefore they will not be applicable under UCP 600. The essence of the Decision covering the determination of an original document has been incorporated into the text of UCP 600. The outcome of the DOCDEX cases were invariably based on existing ICC Banking Commission Opinions therefore contained no specific issues that required addressing in these rules.One of the structural changes to the UCP is the introduction of articles covering definitions (article 2) interpretations (article 3). In providing definitions of roles played by banks the meaning of specific terms events UCP 600 avoids the necessity of repetitive text to explain their interpretation application. Similarly the article covering interpretations aims to take the ambiguity out of vagueunclear language that appears in letters of credit to provide a definitive elucidation of other characteristics of the UCPthe credit.During the course of the last three years ICC national committees were canvassed on a range of issues to determine their preferences on alternative texts submitted by the Drafting Group. The results of this exercise the considerable input national committees on individual items in the text is reflected in the content of UCP 600. The Drafting Group considered not only the current practice relative to the documentary credit but also tried to envisage the future evolution of that practice.This revision of the UCP represents the culmination of over three years of extensive analysis review debate compromise amongst the various members of the Drafting Group the members of the Banking Commission the respective ICC national committees. Valuable comment has also been received the ICC Commission on Transport Logistics the Commission on Commercial Law Practice the Committee on Insurance.It is not appropriate for this publication to provide an explanation as to why an article has been worded in such a waywhat is intended by its incorporation into the rules.For those interested in understing the rationale interpretation of the articles of UCP 600 this information will be found in the Commentary to the rules ICC Publication 601 which represents the Drafting Group’s views.On behalf of the Drafting Group I would like to extend our deep appreciation to the members of the Consulting Group ICC national committees members of the Banking Commission for their professional comments their constructive participation in this process. Special thanks are due to the members of the Drafting Group their institutions who are listed below in alphabetical order.Nicole Keller – Vice President Service International Products Dresdner Bank AGFrankfurt Germany; Representative to the ICC Commission on Banking Technique Practice;Laurence Kooy – Legal Adviser BNP Paribas Paris France; Representative to the ICC Commission on Banking Technique Practice. Katja Lehr – Business Manager Trade Services Stards SWIFT La Hulpe Belgiumthen Vice President Membership Representation International Financial Services Association New Jersey USA; Representative to the ICC Commission on Banking Technique Practice; Ole Malmqvist – Vice President Danske Bank Copenhagen Denmark; Representative to the ICC Commission on Banking Technique Practice; Paul Miserez – Head of Trade Finance Stards SWIFT La Hulpe Belgium;Representative to the ICC Commission on Banking Technique Practice;René Mueller – Director Credit Suisse Zurich Switzerl; Representative to the ICC Commission on Banking Technique Practice; Chee Seng Soh – Consultant Association of Banks in Singapore Singapore; Representative to the ICC Commission on Banking Technique Practice; Dan Taylor – President CEO International Financial Services Association. New Jersey USA; Vice Chairman ICC Commission on Banking Technique Practice;Alexer Zelenov – Director Vnesheconombank Moscow Russia; Vice ChairmanICC Commission on Banking Technique Practice;Ron Katz – Policy Manager ICC Commission on Banking Technique PracticeInternational Chamber of Commerce Paris France.The undersigned had the pleasure of chairing the Drafting Group.It was through the generous giving of their knowledge time energy that this revision was accomplished so successfully. As Chair of the Drafting Group I would like to extend to them to their institutions my gratitude for their contribution for a job well done for their friendship. I would also like to extend my sincere thanks to the management of ABN AMRO Bank N.V. for their understing patience support during the course of this revision process.Gary Collyer Corporate DirectorABN AMRO Bank N.V. London Engl Technical Adviser to the ICC Commission on Banking Technique PracticeNovember 2006
Article 1 Application of UCP The Uniform Customs Practice for Documentary Credits 2007 Revision ICC Publication no. 600 (“UCP”) are rules that apply to any documentary credit (“credit”) (including to the extent to which they may be applicable any stby letter of credit) when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modifiedexcluded by the credit.
Article 2 Definitions For the purpose of these rules: 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. Beneficiary means the party in whose favour a credit is issued. Complying presentation means a presentation that is in accordance with the terms conditions of the credit the applicable provisions of these rules international stard banking practice. Confirmation means a definite undertaking of the confirming bank in addition to that of the issuing bank to honournegotiate a complying presentation. Confirming bank means the bank that adds its confirmation to a credit upon the issuing bank’s authorizationrequest. Credit means any arrangement however nameddescribed that is irrevocable thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. Honour means: a. to pay at sight if the credit is available by sight payment. b. to incur a deferred payment undertaking pay at maturity if the credit is available by deferred payment. c. to accept a bill of exchange (“draft”) drawn by the beneficiary pay at maturity if the credit is available by acceptance. Issuing bank means the bank that issues a credit at the request of an applicanton its own behalf. Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) /or documents under a complying presentation by advancingagreeing to advance funds to the beneficiary onbefore the banking day on which reimbursement is due to the nominated bank. Nominated bank means the bank with which the credit is availableany bank in the case of a credit available with any bank. Presentation means either the delivery of documents under a credit to the issuing banknominated bankthe documents so delivered. Presenter means a beneficiary bankother party that makes a presentation.
Article 3 Interpretations For the purpose of these rules: Where applicable words in the singular include the plural in the plural include the singular. A credit is irrevocable even if there is no indication to that effect. A document may be signed by hwriting facsimile signature perforated signaturestamp symbolany other mechanicalelectronic method of authentication. A requirement for a document to be legalized visaed certifiedsimilar will be satisfied by any signature mark stamplabel on the document which appears to satisfy that requirement. Branches of a bank in different countries are considered to be separate banks. Terms such as "first class" "well known" "qualified" "independent" "official""competent""local" used to describe the issuer of a document allow any issuer except the beneficiary to issue that document. Unless required to be used in a document words such as "prompt" "immediately""as soon as possible" will be disregarded. The expression "onabout"similar will be interpreted as a stipulation that an event is to occur during a period of five calendar days before until five calendar days after the specified date both start end dates included. The words "to" "until" "till" “” “between” when used to determine a period of shipment include the datedates mentioned the words “before” "after"exclude the date mentioned. The words “” "after" when used to determine a maturity date exclude the date mentioned. The terms "first half" "second half" of a month shall be construed respectively as the 1st to the 15th the 16th to the last day of the month all dates inclusive. The terms "beginning" "middle" "end" of a month shall be construed respectively as the 1st to the 10th the 11th to the 20th the 21st to the last day of the month all dates inclusive.
Article 4 Credits v. Contracts a. A credit by its nature is a separate transaction the saleother contract on which it may be based. Banks are in no way concerned withbound by such contract even if any reference whatsoever to it is included in the credit.Consequently the undertaking of a bank to honour to negotiateto fulfil any other obligation under the credit is not subject to claimsdefences by the applicant resulting its relationships with the issuing bankthe beneficiary.A beneficiary can in no case avail itself of the contractual relationships existing between banksbetween the applicant the issuing bank. b. An issuing bank should discourage any attempt by the applicant to include as an integral part of the credit copies of the underlying contract proforma invoice the like.
Article 5 Documents v. Goods ServicesPerformance Banks deal with documents not with goods servicesperformance to which the documents may relate.
Article 6 Availability Expiry Date Place for Presentation a. A credit must state the bank with which it is availablewhether it is available with any bank. A credit available with a nominated bank is also available with the issuing bank. b. A credit must state whether it is available by sight payment deferred paymentacceptancenegotiation. c. A credit must not be issued available by a draft drawn on the applicant. d. i. A credit must state an expiry date for presentation. An expiry date stated for honournegotiation will be deemed to be an expiry date for presentation. ii. The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank. A place for presentation other than that of the issuing bank is in addition to the place of the issuing bank. e. Except as provided in sub-article 29 (a) a presentation byon behalf of the beneficiary must be made onbefore the expiry date.
Article 7 Issuing Bank Undertaking a. Provided that the stipulated documents are presented to the nominated bankto the issuing bank that they constitute a complying presentation the issuing bank must honour if the credit is available by: i. sight payment deferred paymentacceptance with the issuing bank; ii. sight payment with a nominated bank that nominated bank does not pay; iii. deferred payment with a nominated bank that nominated bank does not incur its deferred payment undertakinghaving incurred its deferred payment undertaking does not pay at maturity; iv. acceptance with a nominated bank that nominated bank does not accept a draft drawn on ithaving accepted a draft drawn on it does not pay at maturity; v. negotiation with a nominated bank that nominated bank does not negotiate. b. An issuing bank is irrevocably bound to honour as of the time it issues the credit. c. An issuing bank undertakes to reimburse a nominated bank that has honourednegotiated a complying presentation forwarded the documents to the issuing bank. Reimbursement for the amount of a complying presentation under a credit available by acceptancedeferred payment is due at maturity whethernot the nominated bank prepaidpurchased before maturity. An issuing bank's undertaking to reimburse a nominated bank is independent of the issuing bank’s undertaking to the beneficiary.
Article 8 Confirming Bank Undertaking a. Provided that the stipulated documents are presented to the confirming bankto any other nominated bank that they constitute a complying presentationthe confirming bank must: i. honour if the credit is available by a. sight payment deferred paymentacceptance with the confirming bank; b. sight payment with another nominated bank that nominated bank does not pay; c. deferred payment with another nominated bank that nominated bank does not incur its deferred payment undertakinghaving incurred its deferred payment undertaking does not pay at maturity; d. acceptance with another nominated bank that nominated bank does not accept a draft drawn on ithaving accepted a draft drawn on it does not pay at maturity; e. negotiation with another nominated bank that nominated bank does not negotiate. ii. negotiate without recourse if the credit is available by negotiation with the confirming bank. b. A confirming bank is irrevocably bound to honournegotiate as of the time it adds its confirmation to the credit. c. A confirming bank undertakes to reimburse another nominated bank that has honourednegotiated a complying presentation forwarded the documents to the confirming bank. Reimbursement for the amount of a complying presentation under a credit available by acceptancedeferred payment is due at maturity whethernot another nominated bank prepaidpurchased before maturity. A confirming bank's undertaking to reimburse another nominated bank is independent of the confirming bank’s Undertaking to the beneficiary. d. If a bank is authorizedrequested by the issuing bank to confirm a credit but is not prepared to do so it must inform the issuing bank without delay may advise the credit without confirmation.
Article 9 Advising of Credits Amendments a. A credit any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit any amendment without any undertaking to honournegotiate. b. By advising the creditamendment the advising bank signifies that it has satisfied itself as to the apparent authenticity of the creditamendment that the advice accurately reflects the terms conditions of the creditamendment received. c. An advising bank may utilize the services of another bank (“second advising bank”) to advise the credit any amendment to the beneficiary. By advising the creditamendment the second advising bank signifies that it has satisfied itself as to the apparent authenticity of the advice it has received that the advice accurately reflects the terms conditions of the creditamendment received. d. A bank utilizing the services of an advising banksecond advising bank to advise a credit must use the same bank to advise any amendment thereto. e. If a bank is requested to advise a creditamendment but elects not to do so it must so inform without delay the bank which the credit amendmentadvice has been received. f. If a bank is requested to advise a creditamendment but cannot satisfy itself as to the apparent authenticity of the credit the amendmentthe advice it must so inform without delay the bank which the instructions appear to have been received. If the advising banksecond advising bank elects nonetheless to advise the creditamendment it must inform the beneficiarysecond advising bank that it has not been able to satisfy itself as to the apparent authenticity of the credit the amendmentthe advice.
Article 10 Amendments a. Except as otherwise provided by article 38 a credit can neither be amended nor cancelled without the agreement of the issuing bank the confirming bank if any the beneficiary. b. An issuing bank is irrevocably bound by an amendment as of the time it issues the amendment. A confirming bank may extend its confirmation to an amendment will be irrevocably bound as of the time it advises the amendment. A confirming bank may however choose to advise an amendment without extending its confirmation if so it must inform the issuing bank without delay inform the beneficiary in its advice. c. The terms conditions of the original credit (or a credit incorporating previously accepted amendments) will remain in force for the beneficiary until the beneficiary communicates its acceptance of the amendment to the bank that advised such amendment. The beneficiary should give notification of acceptancerejection of an amendment. If the beneficiary fails to give such notification a presentation that complies with the credit to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment. As of that moment the credit will be amended. d. A bank that advises an amendment should inform the bank which it received the amendment of any notification of acceptancerejection. e. Partial acceptance of an amendment is not allowed will be deemed to be notification of rejection of the amendment. f. A provision in an amendment to the effect that the amendment shall enter into force unless rejected by the beneficiary within a certain time shall be disregarded. Article 11 Teletransmitted Pre-Advised Credits Amendments a. An authenticated teletransmission of a creditamendment will be deemed to be the operative creditamendment any subsequent mail confirmation shall be disregarded.If a teletransmission states "full details to follow" (or words of similar effect)states that the mail confirmation is to be the operative creditamendment then the teletransmission will not be deemed to be the operative creditamendment.The issuing bank must then issue the operative creditamendment without elay in terms not inconsistent with the teletransmission. b. A preliminary advice of the issuance of a creditamendment (“pre-advice”) Shall only be sent if the issuing bank is prepared to issue the operative creditamendment. An issuing bank that sends a pre-advice is irrevocably committed to issue the operative creditamendment without delay in terms not inconsistent with the pre-advice.
Article 12 Nomination a. Unless a nominated bank is the confirming bank an authorization to honournegotiate does not impose any obligation on that nominated bank to honournegotiate except when expressly agreed to by that nominated bank so communicated to the beneficiary. b. By nominating a bank to accept a draftincur a deferred payment undertakingan issuing bank authorizes that nominated bank to prepaypurchase a draft accepteda deferred payment undertaking incurred by that nominated bank. c. Receiptexamination forwarding of documents by a nominated bank that is not a confirming bank does not make that nominated bank liable to honournegotiate nor does it constitute honournegotiation.
Article 13 Bank-to-Bank Reimbursement Arrangements a. If a credit states that reimbursement is to be obtained by a nominated bank ("claiming bank") claiming on another party ("reimbursing bank") the credit must state if the reimbursement is subject to the ICC rules for bank-to-bank reimbursements in effect on the date of issuance of the credit. b. If a credit does not state that reimbursement is subject to the ICC rules for bankto-bank reimbursements the following apply: i. An issuing bank must provide a reimbursing bank with a reimbursement authorization that conforms with the availability stated in the credit. The reimbursement authorization should not be subject to an expiry date. ii. A claiming bank shall not be required to supply a reimbursing bank with a certificate of compliance with the terms conditions of the credit. iii. An issuing bank will be responsible for any loss of interest together with any expenses incurred if reimbursement is not provided on first dem by a reimbursing bank in accordance with the terms conditions of thecredit. iv. A reimbursing bank's charges are for the account of the issuing bank. However if the charges are for the account of the beneficiary it is the responsibility of an issuing bank to so indicate in the credit in the reimbursement authorization. If a reimbursing bank's charges are for the account of the beneficiary they shall be deducted the amount due to a claiming bank when reimbursement is made. If no reimbursement is made the reimbursing bank's charges remain the obligation of the issuing bank. c. An issuing bank is not relieved of any of its obligations to provide reimbursement if reimbursement is not made by a reimbursing bank on first dem.
Article 14 Stard for Examination of Documents a. A nominated bank acting on its nomination a confirming bank if any the issuing bank must examine a presentation to determine on the basis of the documents alone whethernot the documents appear on their face to Constitute a complying presentation. b. A nominated bank acting on its nomination a confirming bank if any the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if a presentation is complying. This period is not curtailedotherwise affected by the occurrence onafter the date of presentation of any expiry datelast day for presentation. c. A presentation including onemore original transport documents subject to articles 19 20 21 22 23 2425 must be made byon behalf of the beneficiary not later than 21 calendar days after the date of shipment as described in these rules but in any event not later than the expiry date of the credit. d. Data in a document when read in context with the credit the document itself international stard banking practice need not be identical to but must not conflict with data in that document any other stipulated documentthe credit. e. In documents other than the commercial invoice the description of the goodsservicesperformance if stated may be in general terms not conflicting with their description in the credit. f. If a credit requires presentation of a document other than a transport documentinsurance documentcommercial invoice without stipulating by whom the document is to be issuedits data content banks will accept the document as presented if its content appears to fulfil the function of the required document otherwise complies with sub-article 14 (d). g. A document presented but not required by the credit will be disregarded may be returned to the presenter. h. If a credit contains a condition without stipulating the document to indicate compliance with the condition banks will deem such condition as not stated will disregard it. i. A document may be dated prior to the issuance date of the credit but must not be dated later than its date of presentation. j. When the addresses of the beneficiary the applicant appear in any stipulated document they need not be the same as those stated in the creditin any other stipulated document but must be within the same country as the respective addresses mentioned in the credit. Contact details (telefax telephone email the like) stated as part of the beneficiary’s the applicant’s address will be disregarded. However when the address contact details of the applicant appear as part of the consigneenotify party details on a transport document subject to articles 19 20 21 22 23 2425 they must be as stated in the credit. k. The shipperconsignor of the goods indicated on any document need not be the beneficiary of the credit. l. A transport document may be issued by any party other than a carrier ownermastercharterer provided that the transport document meets the requirements of articles 19 20 21 22 2324 of these rules.
Article 15 Complying Presentation a. When an issuing bank determines that a presentation is complying it must honour. b. When a confirming bank determines that a presentation is complying it must honournegotiate forward the documents to the issuing bank. c. When a nominated bank determines that a presentation is complying honoursnegotiates it must forward the documents to the confirming bankissuing bank.
Article 16 Discrepant Documents Waiver Notice a. When a nominated bank acting on its nomination a confirming bank if anythe issuing bank determines that a presentation does not comply it may refuse to honournegotiate. b. When an issuing bank determines that a presentation does not comply it may in its sole judgement approach the applicant for a waiver of the discrepancies. This does not however extend the period mentioned in sub-article 14 (b). c. When a nominated bank acting on its nomination a confirming bank if anythe issuing bank decides to refuse to honournegotiate it must give a single notice to that effect to the presenter. The notice must state: i. that the bank is refusing to honournegotiate; ii. each discrepancy in respect of which the bank refuses to honour or negotiate; iii. a) that the bank is holding the documents pending further instructions the presenter; or b) that the issuing bank is holding the documents until it receives a waiver the applicant agrees to accept itreceives further instructions the presenter prior to agreeing to accept a waiver; or c) that the bank is returning the documents; or d) that the bank is acting in accordance with instructions previously received the presenter. d. The notice required in sub-article 16 (c) must be given by telecommunicationif that is not possible by other expeditious means no later than the close of the fifth banking day following the day ofpresentation. e. A nominated bank acting on its nomination a confirming bank if anythe issuing bank may after providing notice required by sub-article 16 (c) (iii) (a) or(b) return the documents to the presenter at any time. f. If an issuing banka confirming bank fails to act in accordance with the provisions of this article it shall be precluded claiming that the documents do not constitute a complying presentation. g. When an issuing bank refuses to honoura confirming bank refuses to honournegotiate has given notice to that effect in accordance with this article it shall then be entitled to claim a refund with interest of any reimbursement made.
Article 17 Original Documents Copies a. At least one original of each document stipulated in the credit must be presented. b. A bank shall treat as an original any document bearing an apparently original signature mark stamplabel of the issuer of the document unless the document itself indicates that it is not an original. c. Unless a document indicates otherwise a bank will also accept a document as original if it: i. appears to be written typed perforatedstamped by the document issuer’s h; or ii. appears to be on the document issuer’s original stationery; or iii. states that it is original unless the statement appears not to apply to the document presented. d. If a credit requires presentation of copies of documents presentation of either originalscopies is permitted. e. If a credit requires presentation of multiple documents by using terms such as "in duplicate" "in two fold""in two copies" this will be satisfied by the presentation of at least one original the remaining number in copies except when the document itself indicates otherwise.
Article 18 Commercial Invoice a. A commercial invoice: i. must appear to have been issued by the beneficiary (except as provided in article 38); ii. must be made out in the name of the applicant (except as provided in subarticle 38 (g)); iii. must be made out in the same currency as the credit; iv. need not be signed. b. A nominated bank acting on its nomination a confirming bank if anythe issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit its decision will be binding upon all parties provided the bank in question has not honourednegotiated for an amount in excess of that permitted by the credit. c. The description of the goods servicesperformance in a commercial invoice must correspond with that appearing in the credit.
Article 19 Transport Document Covering at Least Two Different Modes of Transport a. A transport document covering at least two different modes of transport (multimodalcombined transport document) however named must appear to: i. indicate the name of the carrier be signed by: the carriera named agent foron behalf of the carrier or the mastera named agent foron behalf of the master. Any signature by the carrier masteragent must be identified as that of the carrier masteragent. Any signature by an agent must indicate whether the agent has signed foron behalf of the carrierforon behalf of the master. ii. indicate that the goods have been dispatched taken in chargeshipped on board at the place stated in the credit by: pre-printed wording or a stampnotation indicating the date on which the goods have been dispatched taken in chargeshipped on board. The date of issuance of the transport document will be deemed to be the date of dispatch taking in chargeshipped on board the date of shipment. However if the transport document indicates by stamp or notation a date of dispatch taking in chargeshipped on board this date will be deemed to be the date of shipment. iii. indicate the place of dispatch taking in chargeshipment the place of final destination stated in the credit even if: a. the transport document states in addition a different place of dispatch taking in chargeshipmentplace of final destinationor b. the transport document contains the indication "intended"similar qualification in relation to the vessel port of loadingport of discharge. iv. be the sole original transport documentif issued in more than one original be the full set as indicated on the transport document. v. contain terms conditions of carriagemake reference to another source containing the terms conditions of carriage (short formblank back transport document). Contents of terms conditions of carriage will not be examined. vi. contain no indication that it is subject to a charter party. b. For the purpose of this article transhipment means unloading one means of conveyance reloading to another means of conveyance (whethernot in different modes of transport) during the carriage the place of dispatchtaking in chargeshipment to the place of final destination stated in the credit. c. i. A transport document may indicate that the goods willmay be transhipped provided that the entire carriage is covered by one the same transport document. ii. A transport document indicating that transhipment willmay take place is acceptable even if the credit prohibits transhipment.
Article 20 Bill of Lading a. A bill of lading however named must appear to: i. indicate the name of the carrier be signed by: • the carriera named agent foron behalf of the carrier or • the mastera named agent foron behalf of the master. Any signature by the carrier masteragent must be identified as that of the carrier masteragent. Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrierforon behalf of the master. ii. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by: pre-printed wording or an on board notation indicating the date on which the goods have been shipped on board. The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill of lading contains an on board notation indicating the date of shipment in which case the date stated in the on board notation will be deemed to be the date of shipment. If the bill of lading contains the indication "intended vessel"similar qualification in relation to the name of the vessel an on board notation indicating the date of shipment the name of the actual vessel is required. iii. indicate shipment the port of loading to the port of discharge stated in the credit. If the bill of lading does not indicate the port of loading stated in the credit as the port of loadingif it contains the indication “intended”similar qualification in relation to the port of loading an on board notation indicating the port of loading as stated in the credit the date of shipment the name of the vessel is required. This provision applies even when loading on boardshipment on a named vessel is indicated by preprinted wording on the bill of lading. iv. be the sole original bill of ladingif issued in more than one original be the full set as indicated on the bill of lading. v. contain terms conditions of carriagemake reference to another source containing the terms conditions of carriage (short formblank back bill of lading). Contents of terms conditions of carriage will not be examined. vi. contain no indication that it is subject to a charter party. b. For the purpose of this article transhipment means unloading one vessel reloading to another vessel during the carriage the port of loading to the port of discharge stated in the credit. c. i. A bill of lading may indicate that the goods willmay be transhipped provided that the entire carriage is covered by one the same bill of lading. ii. A bill of lading indicating that transhipment willmay take place is acceptable even if the credit prohibits transhipment if the goods have been shipped in a container trailerLASH barge as evidenced by the bill of lading. d. Clauses in a bill of lading stating that the carrier reserves the right to tranship will be disregarded.
Article 21 Non-Negotiable Sea Waybill a. A non-negotiable sea waybill however named must appear to: i. indicate the name of the carrier be signed by: • the carriera named agent foron behalf of the carrier or • the mastera named agent foron behalf of the master. Any signature by the carrier masteragent must be identified as that of the carrier masteragent. Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrierforon behalf of the master. ii. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by: pre-printed wording or an on board notation indicating the date on which the goods have been shipped on board. The date of issuance of the non-negotiable sea waybill will be deemed to be the date of shipment unless the non-negotiable sea waybill contains an on board notation indicating the date of shipment in which case the date stated in the on board notation will be deemed to be the date of shipment. If the non-negotiable sea waybill contains the indication "intended vessel" or similar qualification in relation to the name of the vessel an on board notation indicating the date of shipment the name of the actual vessel is required. iii. indicate shipment the port of loading to the port of discharge stated in the credit. If the non-negotiable sea waybill does not indicate the port of loading stated in the credit as the port of loadingif it contains the indication “intended”similar qualification in relation to the port of loading an on board notation indicating the port of loading as stated in the credit the date of shipment the name of the vessel is required. This provision applies even when loading on boardshipment on a named vessel is indicated by pre-printed wording on the non-negotiable sea waybill. iv. be the sole original non-negotiable sea waybillif issued in more than one original be the full set as indicated on the non-negotiable sea waybill. v. contain terms conditions of carriagemake reference to another source containing the terms conditions of carriage (short formblank back non-negotiable sea waybill). Contents of terms conditions of carriage will not be examined. vi. contain no indication that it is subject to a charter party. b. For the purpose of this article transhipment means unloading one vessel reloading to another vessel during the carriage the port of loading to the port of discharge stated in the credit. c. i. A non-negotiable sea waybill may indicate that the goods willmay be transhipped provided that the entire carriage is covered by one the same non-negotiable sea waybill. ii. A non-negotiable sea waybill indicating that transhipment willmay take place is acceptable even if the credit prohibits transhipment if the goods have been shipped in a container trailerLASH barge as evidenced by The non-negotiable sea waybill. d. Clauses in a non-negotiable sea waybill stating that the carrier reserves the right to tranship will be disregarded.
Article 22 Charter Party Bill of Lading a. A bill of lading however named containing an indication that it is subject to a charter party (charter party bill of lading) must appear to: i. be signed by: the mastera named agent foron behalf of the master or the ownera named agent foron behalf of the owner or the chatterera named agent foron behalf of the charterer. Any signature by the master owner chartereragent must be identified as that of the master owner chartereragent. Any signature by an agent must indicate whether the agent has signed for or on behalf of the master ownercharterer. An agent signing foron behalf of the ownercharterer must indicate the name of the ownercharterer. ii. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by: pre-printed wording or an on board notation indicating the date on which the goods have been shipped on board. The date of issuance of the charter party bill of lading will be deemed to be the date of shipment unless the charter party bill of lading contains an on board notation indicating the date of shipment in which case the date stated in the on board notation will be deemed to be the date of shipment. iii. indicate shipment the port of loading to the port of discharge stated in the credit. The port of discharge may also be shown as a range of ports or a geographical area as stated in the credit. iv. be the sole original charter party bill of ladingif issued in more than one original be the full set as indicated on the charter party bill of lading. b. A bank will not examine charter party contracts even if they are required to be presented by the terms of the credit.
Article 23 Air Transport Document a. An air transport document however named must appear to: i. indicate the name of the carrier be signed by: the carriera named agent foron behalf of the carrier. Any signature by the carrieragent must be identified as that of the carrieragent. Any signature by an agent must indicate that the agent has signed for or on behalf of the carrier. ii. indicate that the goods have been accepted for carriage. iii. indicate the date of issuance. This date will be deemed to be the date of shipment unless the air transport document contains a specific notation of the actual date of shipment in which case the date stated in the notation will be deemed to be the date of shipment. Any other information appearing on the air transport document relative to the flight number date will not be considered in determining the date of shipment. iv. indicate the airport of departure the airport of destination stated in the credit. v. be the original for consignorshipper even if the credit stipulates a full set of originals. vi. contain terms conditions of carriagemake reference to another source containing the terms conditions of carriage. Contents of terms conditions of carriage will not be examined. b. For the purpose of this article transhipment means unloading one aircraft reloading to another aircraft during the carriage the airport of departure to the airport of destination stated in the credit. c. i. An air transport document may indicate that the goods willmay be transhipped provided that the entire carriage is covered by one the same air transport document. ii. An air transport document indicating that transhipment willmay take place is acceptable even if the credit prohibits transhipment.
Article 24 Road RailInl Waterway Transport Documents a. A road railinl waterway transport document however named must appear to: i. indicate the name of the carrier : be signed by the carriera named agent foron behalf of the carrier or indicate receipt of the goods by signature stampnotation by the carriera named agent foron behalf of the carrier. Any signature stampnotation of receipt of the goods by the carrier or agent must be identified as that of the carrieragent. Any signature stampnotation of receipt of the goods by the agent must indicate that the agent has signedacted foron behalf of the carrier. If a rail transport document does not identify the carrier any signature or stamp of the railway company will be accepted as evidence of the document being signed by the carrier. ii. indicate the date of shipmentthe date the goods have been received for shipment dispatchcarriage at the place stated in the credit. Unless the transport document contains a dated reception stamp an indication of the date of receipta date of shipment the date of issuance of the transport document will be deemed to be the date of shipment. iii. indicate the place of shipment the place of destination stated in the credit. b. i. A road transport document must appear to be the original for consignorshipperbear no marking indicating for whom the document has been prepared. ii. A rail transport document marked “duplicate” will be accepted as an original. iii. A railinl waterway transport document will be accepted as an original whether marked as an originalnot. c. In the absence of an indication on the transport document as to the number of originals issued the number presented will be deemed to constitute a full set. d. For the purpose of this article transhipment means unloading one means of conveyance reloading to another means of conveyance within the same mode of transport during the carriage the place of shipment dispatchcarriage to the place of destination stated in the credit. e. i. A road railinl waterway transport document may indicate that the goods willmay be transhipped provided that the entire carriage is covered by one the same transport document. ii. A road railinl waterway transport document indicating that transhipment willmay take place is acceptable even if the credit prohibits transhipment.
Article 25 Courier Receipt Post ReceiptCertificate of Posting a. A courier receipt however named evidencing receipt of goods for transportmust appear to: i. indicate the name of the courier service be stampedsigned by the named courier service at the place which the credit states the goods are to be shipped; ii. indicate a date of pick-upof receiptwording to this effect. This date will be deemed to be the date of shipment. b. A requirement that courier charges are to be paidprepaid may be satisfied by a transport document issued by a courier service evidencing that courier charges are for the account of a party other than the consignee. c. A post receiptcertificate of posting however named evidencing receipt of goods for transport must appear to be stampedsigned dated at the place which the credit states the goods are to be shipped. This date will be deemed to be the date of shipment.
Article 26 "On Deck" "Shipper's Load Count" “Said by Shipper to Contain” Charges Additional to Freight a. A transport document must not indicate that the goods arewill be loaded on deck. A clause on a transport document stating that the goods may be loaded on deck is acceptable. b. A transport document bearing a clause such as "shipper's load count" "said by shipper to contain" is acceptable. c. A transport document may bear a reference by stampotherwise to charges additional to the freight. Article 27 Clean Transport Document A bank will only accept a clean transport document. A clean transport document is one bearing no clausenotation expressly declaring a defective condition of the goodstheir packaging. The word “clean” need not appear on a transport document even if a credit has a requirement for that transport document to be “clean on board”.
Article 28 Insurance Document Coverage a. An insurance document such as an insurance policy an insurance certificatea declaration under an open cover must appear to be issued signed by an insurance company an underwritertheir agentstheir proxies. Any signature by an agentproxy must indicate whether the agentproxy has signed foron behalf of the insurance companyunderwriter. b. When the insurance document indicates that it has been issued in more than one original all originals must be presented. c. Cover notes will not be accepted. d. An insurance policy is acceptable in lieu of an insurance certificatea declaration under an open cover. e. The date of the insurance document must be no later than the date of shipmentunless it appears the insurance document that the cover is effective a date not later than the date of shipment. f. i. The insurance document must indicate the amount of insurance coverage be in the same currency as the credit. ii. A requirement in the credit for insurance coverage to be for a percentage of the value of the goods of the invoice valuesimilar is deemed to be the minimum amount of coverage required. If there is no indication in the credit of the insurance coverage required the amount of insurance coverage must be at least 110% of the CIF or CIP value of the goods. When the CIFCIP value cannot be determined the documents the amount of insurance coverage must be calculated on the basis of the amount for which honournegotiation is requestedthe gross value of the goods as shown on the invoice whichever is greater. iii. The insurance document must indicate that risks are covered at least between the place of taking in chargeshipment the place of dischargefinal destination as stated in the credit. g. A credit should state the type of insurance required if any the additional risks to be covered. An insurance document will be accepted without regard to any risks that are not covered if the credit uses imprecise terms such as “usual risks”“customary risks”. h. When a credit requires insurance against “all risks” an insurance document is presented containing any “all risks” notationclause whethernot bearing the heading “all risks” the insurance document will be accepted without regard to any risks stated to be excluded. i. An insurance document may contain reference to any exclusion clause. j. An insurance document may indicate that the cover is subject to a franchiseexcess (deductible).
Article 29 Extension of Expiry DateLast Day for Presentation a. If the expiry date of a creditthe last day for presentation falls on a day when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36 the expiry datethe last day for presentation as the case may be will be extended to the first following banking day. b. If presentation is made on the first following banking day a nominated bank must provide the issuing bankconfirming bank with a statement on its covering schedule that the presentation was made within the time limits extended in accordance with sub-article 29 (a). c. The latest date for shipment will not be extended as a result of sub-article 29 (a).
Article 30 Tolerance in Credit Amount Quantity Unit Prices a. The words "about""approximately" used in connection with the amount of the creditthe quantitythe unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more10% less than the amount the quantitythe unit price to which they refer. b. A tolerance not to exceed 5% more5% less than the quantity of the goods is allowed provided the credit does not state the quantity in terms of a stipulated number of packing unitsindividual items the total amount of the drawings does not exceed the amount of the credit. c. Even when partial shipments are not allowed a tolerance not to exceed 5% less than the amount of the credit is allowed provided that the quantity of the goodsif stated in the credit is shipped in full a unit price if stated in the credit is not reducedthat sub-article 30 (b) is not applicable. This tolerance does not apply when the credit stipulates a specific toleranceuses the expressions referred to in sub-article 30 (a).
Article 31 Partial DrawingsShipments a. Partial drawingsshipments are allowed. b. A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance for the same journey provided they indicate the same destination will not be regarded as covering a partial shipment even if they indicate different dates of shipmentdifferent ports of loading places of taking in chargedispatch. If the presentation consists of more than one set of transport documents the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment. A presentation consisting of onemore sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment even if the means of conveyance leave on the same day for the same destination. c. A presentation consisting of more than one courier receipt post receipt or certificate of posting will not be regarded as a partial shipment if the courier receipts post receiptscertificates of posting appear to have been stampedsigned by the same courierpostal service at the same place date for the same destination.
Article 32 Instalment DrawingsShipments If a drawingshipment by instalments within given periods is stipulated in the credit any instalment is not drawnshipped within the period allowed for that instalmentthe credit ceases to be available for that any subsequent instalment.
Article 33 Hours of Presentation A bank has no obligation to accept a presentation outside of its banking hours.
Article 34 Disclaimer on Effectiveness of Documents A bank assumes no liabilityresponsibility for the form sufficiency accuracygenuineness falsificationlegal effect of any documentfor the generalparticular conditions stipulated in a documentsuperimposed thereon; nor does it assume any liabilityresponsibility for the description quantity weight quality condition packingdelivery valueexistence of the goods servicesother performance represented by any documentfor the good faithactsomissions solvency performancesting of the consignor the carrier the forwarder the consigneethe insurer of the goodsany other person.
Article 35 Disclaimer on Transmission Translation A bank assumes no liabilityresponsibility for the consequences arising out of delayloss in transit mutilationother errors arising in the transmission of any messagesdelivery of lettersdocuments when such messages lettersdocuments are transmittedsent according to the requirements stated in the creditwhen the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in the credit. If a nominated bank determines that a presentation is complying forwards the documents to the issuing bankconfirming bank whethernot the nominated bank has honourednegotiated an issuing bankconfirming bank must honournegotiatereimburse that nominated bank even when the documents have been lost in transit between the nominated bank the issuing bankconfirming bankbetween the confirming bank the issuing bank. A bank assumes no liabilityresponsibility for errors in translationinterpretation of technical terms may transmit credit terms without translating them.
Article 36 Force Majeure A bank assumes no liabilityresponsibility for the consequences arising out of the interruption of its business by Acts of God riots civil commotions insurrections wars acts of terrorismby any strikeslockoutsany other causes beyond its control. A bank will not upon resumption of its business honournegotiate under a credit that expired during such interruption of its business.
Article 37 Disclaimer for Acts of an Instructed Party a. A bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account at the risk of the applicant. b. An issuing bankadvising bank assumes no liabilityresponsibility should the instructions it transmits to another bank not be carried out even if it has taken the initiative in the choice of that other bank. c. A bank instructing another bank to perform services is liable for any commissions fees costsexpenses (“charges”) incurred by that bank in connection with its instructions. If a credit states that charges are for the account of the beneficiary charges cannot be collecteddeducted proceeds the issuing bank remains liable for payment of charges. A creditamendment should not stipulate that the advising to a beneficiary is conditional upon the receipt by the advising banksecond advising bank of its charges. d. The applicant shall be bound by liable to indemnify a bank against all obligations responsibilities imposed by foreign laws usages.
Article 38 Transferable Credits a. A bank is under no obligation to transfer a credit except to the extent in the manner expressly consented to by that bank. b. For the purpose of this article: Transferable credit means a credit that specifically states it is “transferable”. A transferable credit may be made available in wholein part to another beneficiary (“second beneficiary”) at the request of the beneficiary (“first beneficiary”). Transferring bank means a nominated bank that transfers the creditin a credit available with any bank a bank that is specifically authorized by the issuing bank to transfer that transfers the credit. An issuing bank may be a transferring bank. Transferred credit means a credit that has been made available by the transferring bank to a second beneficiary. c. Unless otherwise agreed at the time of transfer all charges (such as commissions fees costsexpenses) incurred in respect of a transfer must be paid by the first beneficiary. d. A credit may be transferred in part to more than one second beneficiary provided partial drawingsshipments are allowed. A transferred credit cannot be transferred at the request of a second beneficiary to any subsequent beneficiary. The first beneficiary is not considered to be a subsequent beneficiary. e. Any request for transfer must indicate if under what conditions amendments may be advised to the second beneficiary. The transferred credit must clearly indicate those conditions. f. If a credit is transferred to more than one second beneficiary rejection of an amendment by onemore second beneficiary does not invalidate the acceptance by any other second beneficiary with respect to which the transferred credit will be amended accordingly. For any second beneficiary that rejected the amendment the transferred credit will remain unamended. g. The transferred credit must accurately reflect the terms conditions of the credit including confirmation if any with the exception of: - the amount of the credit - any unit price stated therein - the expiry date - the period for presentation or - the latest shipment dategiven period for shipment anyall of which may be reducedcurtailed. The percentage for which insurance cover must be effected may be increased to provide the amount of cover stipulated in the creditthese articles. The name of the first beneficiary may be substituted for that of the applicant in the credit. If the name of the applicant is specifically required by the credit to appear in any document other than the invoice such requirement must be reflected in the transferred credit. h. The first beneficiary has the right to substitute its own invoice draft if any for those of a second beneficiary for an amount not in excess of that stipulated in the credit upon such substitution the first beneficiary can draw under the credit for the difference if any between its invoice the invoice of a second beneficiary. i. If the first beneficiary is to present its own invoice draft if any but fails to do so on first demif the invoices presented by the first beneficiary create discrepancies that did not exist in the presentation made by the second beneficiary the first beneficiary fails to correct them on first dem the transferring bank has the right to present the documents as received the second beneficiary to the issuing bank without further responsibility to the first beneficiary. j. The first beneficiary may in its request for transfer indicate that honournegotiation is to be effected to a second beneficiary at the place to which the credit has been transferred up to including the expiry date of the credit. This is without prejudice to the right of the first beneficiary in accordance with subarticle 38 (h). k. Presentation of documents byon behalf of a second beneficiary must be made to the transferring bank.
Article 39 Assignment of Proceeds The fact that a credit is not stated to be transferable shall not affect the right of the beneficiary to assign any proceeds to which it may bemay become entitled under the credit in accordance with the provisions of applicable law. This article relates only to the assignment of proceeds not to the assignment of the right to perform under the credit.