International Business & Trade Law
Advanced courses in commercial law and international obligations
Overview of UCP 600 Uniform Commercial Code
Research and Authorship ✒️📋
DPhiL,Dr.Mohammad Shakibi Nejad
Director of the Department of Judicial Sciences & Law Enforcement
Summary of exercises
✒️📋
THE UNIFORM CUSTOMS AND PREACTICE FOR DOCUMENTARY CREDITS, 2007 REVISION, ICC PUBLICATION NO.UCP 600 ARE RULES THAT APPLY TO ANY DOCUMENTARY CREDIT (“CREDIT”) (INCLUDING ,TO THE EXTENT TO WHICH THEY MAY BE APPLICALBE, ANY STAND BY 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 MODIFIED OR EXCLUDED BY THE CREDIT. Article 1
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
SUBJECT TO THESE RULES IS TO BE PERFORMED.Article 2
COMPLYING PRESENTATION: MEANS A PRESENTATION THAT IS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CREDIT, THE APPLICABLE PROVISIONS OF THESE RULES AND INTERNATIONAL STANDARD BANKING PRACTICE.CONFIRMING BANK : MEANS THE BANK THAT ADDS ITS CONFIRMATION TO A CREDIT UPON THE ISSUING BANK’S AUTHORIZATION OR REQUEST. Article 3
Main subject📋✒️
Uniform Customs and Practice for Documentary Credits (UCP), 2007 Revision, ICC Publication No. 600 (UCP 600) which superseded the previous edition of the UCP, UCP 500. Where relevant this note also draws comparisons between the UCP 600, the UPC 500 and the International Standby Practices, ICC Publication No. 590 (ISP 98). Article 4
Abstract of the article👇
The recommendations, in respect of articles 19, 20, 21 and 22 of the UCP 600 Rules, guide banks in the correct interpretation and application of the UCP 600 Rules in relation to on board notations for bills of lading, sea waybills and charter party bills of lading, and for multimodal or combined transport documents, where the first part of the carriage (as required by the credit) is by sea. The publication also includes an explanatory flowchart. Article 5
Simple documentary credit is a value-added option in well-established relationships between an applicant and a beneficiary. As such, this guidance paper provides references to best practices to achieve a straightforward, uncomplicated documentary credit format. It also includes an overview of the SWIFT MT700 fields alongside their comment and clarifications of definition to enable trade finance practitioners to more effectively leverage the framework.International trade is a key driver of growth and innovation for MSME’s worldwide. Through tailored partnerships, ICC Trade Now connects MSMEs to game-changing products and services that aim to bridge the global trade finance gap by scaling innovative trade finance solutions, empowering MSMEs to access international markets, while creating new investment opportunities for financiers. no55°§156-Code 11
Letters of Credit are one of the most secure payment instruments available but can be labor-intensive and relatively expensive due to bank fees. They are recommended for use in higher-risk situations, when the importer’s credit is unacceptable or not available, when dealing with a new or less-established trade relationship or when extended payment terms are requested.The Importer’s bank drafts the Letter of Credit using the Sales Agreement terms and conditions and transmits it to the exporter’s bank. The exporter’s bank reviews and approves the Letter of Credit and sends it to the exporter. no67°§441-Code 330
The exporter ships the goods in the manner provided for in the letter of credit and submits the required documents to their bank.
A freight forwarder may be used to assist in this process. no62°§409-Code 322
The Exporter’s bank checks the documents for compliance with the Letter of Credit terms and conditions. Any document errors and discrepancies must be amended and resubmitted. After approval, the exporter’s bank submits the complying documents to the importer’s bank. no66°§400-Code 312
The importer’s bank releases payment to the exporter’s bank. The importer’s account is and their bank releases the documents to the importer to claim the goods and clear customs.
Reference of Source 👇
1️⃣http://store.iccwbo.org/icc-uniform-customs-and-practice-for-documentary-credits-ucp-600-leaflet-format-set-of-25
2️⃣
3️⃣https://www.trade.gov/conducting-market-research
4️⃣https://www.libf.ac.uk/study/professional-qualifications/trade-finance/certificate-for-documentary-credit-specialists-(cdcs)
5️⃣https://www.druces.com/decision-on-revision-of-ucp600/