• International Commerce and Information Review
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• v.13 no.3
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• pp.459-485
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• 2011

This paper examines the seller's obligation to deliver documents conforming to the terms of the sales contract as set forth in articles 30 and 34 of the CISG. Article 30 obliges the seller to band over documents relating to the goods. This obligation to band over documents is further elaborated in article 34. According to article 34, the documents must be tendered at the time and place, and in the form, required by the contract. If the seller has delivered non-conforming documents before the agreed time, he has the right to remedy the defects if this would not cause the buyer unreasonable inconvenience or expense. However, the buyer can claim any damages suffered despite the seller's remedy. Specific emphasis is placed on the interplay between the CISG and Incoterms. Incoterms contain detailed rules governing the obligations of the seller to provide for documents. Incoterms constitute international trade usage under articles 9(1) and 9(2) CISG and supplement construction of CISG with UCP under L/C transaction. In the event of failure by seller to deliver the necessary documents, the buyer has certain remedies available, such as the right to claim damages, the right to demand specific performance, and the right to repair. Furthermore, the failure to deliver the required documents under contract constitute a fundamental breach of the underlying sales contract as defined by article 25 of the CISG by the seller, and thereby enable the buyer to avoid the contract entirely article 49. However, it is stressed that since one of the main principles of the CISG is the preservation of the contract, the avoidance of the contract should remain a remedy of last resort.

• International Commerce and Information Review
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• v.15 no.2
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• pp.261-283
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• 2013

ISBP745 has new provisions about sea waybill, road, rail or inland waterway transport documents which ISBP681 did not have provisions about. The main revisions of ISBP745 which were not existent or different from ICC Opinion are as follows: First, where B/L is required when multimodal transport is used as a modes of transport, the revisions stipulates that it is subject to UCP600 article19. this differs from previous ICC Opinion. Second, when a credit requires a transport document to indicate the name, address and contact details of a delivery agent, for the place of final destination or port of discharge, the address need not be one that is located at the place of destination or port of discharge or within the same country as that of the place of destination or port of discharge. Third, in case there exist a number of shippers and a consignee, multiple transport documents are issued. This rule has a clear stipulation on this case. Transport industry regards the indication of "LCL/FCL" or "CFS/CY" common in this case as that requiring multiple transport documents. However, ISBP745 does not regard it the case as that requiring multiple transport documents. This may cause some confusion in examination of documents. Forth, when partial shipment is allowed, and more than one set of original transport documents are presented as part of a single presentation made under one covering schedule and incorporate different dates of shipment, the earliest of these dates is to be used of the calculation of an presentation period.

• The Journal of Information Technology
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• v.6 no.4
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• pp.147-162
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• 2003

The technique of information-communication rapidly developed has made it possible for us to do business through Internet. Electronic commerce was increased rapidly by the explosive development of the inter and communication revolution. E-Commerce has created a fundamentally new way of conduction and will change drastically accepted ways of doing business. Normally international trade has been formulated in a way that exporters and importers meet face-to-face and contract and pay by letter of credits. For the global electronic commerce to vitalized, the outstanding matters should encourage the creation of infrastructure of information security and new models in the field of electronic payment systems, electronic commerce agreement for remedy, adapting electronic date interchange in transport documents and negotiability of electronic bills of lading. The payment systems such as electronic fund transfers, tradecard system and electronic letters of credits issued by SWIFT system permit the parties concerned(sellers, buyers ad service providers) to settle payment electronically. Still they are many limitations for complete international electronic transactions. The following measures have to be taken to vitalize electronic trade transactions. It is needed to acquire information security such as authenticity, integrity, non-repudiation and confidentiality. All kinds of documents need to be replaced by electronic date exchange and the legal structure of international convention, national law for electronic payment systems have to be completed. Also a detailed guide of the banking operation and developing rules for electronic letters of credits need to be provided to adopt eUCP rules for the electronic presentation of documents.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.14
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• pp.257-287
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• 2000

Many problems and complaints have been caused by applying the UCP to the standby credit. To solve the problem, International Standby Practices were established. ISP and UCP are similar in that both of them generally regulate the transaction of credit. However, when the ISP is compared with the UCP, the following features are found : 1. In the UCP, when Force Majeure such as acts of God or strikes cause temporary work stoppage, the expiration date cannot be extended. In the ISP, the expiration date can be extended to 30 days afte the place for presentation re-opens for business in the same situation. 2. The UCP does not specify who the issuer of a document must be because there can be many issuers of documents. In the ISP, it is specified that all required documents are to be issued by the beneficiary. 3. In the UCP, compliance between presented documents is required. In the ISP, a discrepancy between presented documents is allowed. 4. In the UCP, if drawings and/or shipments are required by a credit to be made in instalments, and a required drawing/instalment is not made, the credit ceases to be available for any subsequent instalment. In ISP, there is no loss of effect and no influence on the right of beneficiaries, even in the same situation. 5. In the UCP, multiple transfers are not permitted, but partial transfers are. ISP states just the opposite. Multiple transfers are permitted, but partial transfers are not. 6 The UCP obligate each bank (issuer, confirming and nominated bank) to complete their review within a 'reasonable time' but not more than seven banking days. In the ISP, less than three business days is deemed to be not unreasonable and more than seven days is deemed to be unreasonable. 7. ISP, unlike UCP, recognizes that issuers and confirmers may spread their risk through syndication and participation of standby credits. However, the thing to remember is that the ISP should be reviewed carefully before application. If necessary, a partial addition or modifications can be made. Usually, the best advantage of the ISP is given to the issuers. A positive use of the ISP can be made by issuers but, applicants should consider using the UCP to the their rights and duties.

• Korea Trade Review
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• v.43 no.2
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• pp.159-180
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• 2018

The purpose of this study is to contribute to the efficient selection of SMEs' trade settlement system through the empirical analysis of determinants of the payment method of SMEs in Korea. In the previous study, external factors, internal factors, settlement characteristics, transaction goods, transaction amount factors and risk management factors were used. Questionnaires were excluded from analysis, and the number of validated samples collected was 155. To conduct the study, all empirical analyses were verified at the significance level p <.005. Statistical analysis was performed using the SPSSWIN 18.0 program. Analysis results found the payment method used in the company was based on the year of establishment, export items, transaction area, type of transaction, and size of company. Empirical analysis showed that factors influencing the choice of the letter of credit are external factors, internal factors, the risk management factors, and the transaction amounts, etc. Results of this study are as follows: First, the effects of external factors, internal factors, settlement characteristics, and transaction amounts were significant. Hypothesis testing of collections trading methods has not been adopted in all areas presented. In order to utilize the research results, we conducted the study and comparison of the payment method of the income.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.87-103
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• 2008

Two kinds of security devices such as independent guarantees and standby letters of credit have been widely used in the international transactions. These devices design to protect one of the parties from a breach by its counter-party. Main uses of these guarantees and standby letters of credit are as follows : bid guarantee, performance guarantee, advance payment guarantee, payment guarantee, retention guarantee, etc. The standby letters of credit were first invented in the U.S.A. and have been widely used in the international and domestic contracts in the U.S.A. But the practical use of these credits is very unsatisfactory in Korea. The purpose of this study is to serve the increase of practical use of the standby letters of credit in Korea through the comparison study on the practical use of the credits between Korea and the U.S.A. Both devices are very similar in function, but they are very different in forms. The one has the form of letter of credits but the other has the form of guarantee. The letter of credit has the stability of governing rule, the legal certainty, and the preference in the field of the trade community comparing to the guarantee. I recommend to use standby letter of credit instead of bank guarantee in international transactions because of the merits of the credit aforesaid.

• International Commerce and Information Review
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• v.11 no.3
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• pp.287-309
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• 2009

There were many changes regarding Negotiation of document under UCP 600. First of all, the definition of Negotiation was changed. The UCP 500 stated "Negotiation means the giving of value for drafts and documents by the bank authorized to negotiation", but the UCP 600 defines "negotiation" as following "negotiation means the purchase by the nominated bank of drafts and/or documents under a complying presentation". Under the UCP 600 the meaning of negotiation was more clear than UCP 500. Second UCP 600 permits all deferred payment credits be discountable or negotiable. This amended rule equated the deferred payment credit with banker's acceptance credit which was contrary with the nature and the practice of former deferred payment credit transaction. Third, UCP 600 has also provided for reimbursement rights for nominated banks and a conceptual basis for protecting nominated banks against beneficiary fraud. In this paper, the problems regarding negotiation of document under UCP600 was studied and the solutions for the problems occurring in appling UCP 600 in practical field was provided.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.71
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• pp.107-126
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• 2016

This study is to review "on board notation" on a bill of lading under letter of credit transactions. A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods. However, UCP 600Article 20 (a)(ii) requires the bill of lading to 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 shipped on board statement should relate to loading on board the named vessel at the port of loading stated in the credit. But it doesn't seem that the on board notation clause in the UCP 600 reflect current shipping practice fully because of the various kinds of on board notation and the confusion surrounding their use. There is a need to understand accurately the meanings and requirements of "on board notation" under UCP 600 and the related regulations. So, This paper will be studied the requirements and indication method of "on board notation" on the bill of lading and presented the practical implications under the bill of lading transactions. This study was based on documentary research including preceding research.

• International Commerce and Information Review
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• v.12 no.2
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• pp.85-107
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• 2010

A comprehensive electronic trade portal such as the electronic bills of lading, e-negotiations and so on, is developed by the Korea Ministry of Knowledge Economy and International Trade Association and serviced by KTNET. The portal, so called u-TradeHub, formally started to provide its services on 22nd May, 2009. If the shipper issues electronic bills of lading, the negotiating bank examines it through the established e-Nego system. However, the issuing bank overseas cannot examine the electronic bills of lading, because any interactive system does not exist. So, after the e-Nego, the electronic bills of lading gets automatically transformed into the paper-type electronic bills of lading and issuing bank examine paper B/L. In process of examining documents, the beneficiary using electronic means in letter of credit transactions may face some risks such as the corruption to the electronic bill of lading after its issuance by the carrier, the corruption after e-Nego and the corruption after the presentation to the issuing bank. In this paper, we studied the problems on corruptions to occur in the middle of the examination process of the electronic bills of lading and suggestions how to solve them are discussed.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.25
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• pp.75-98
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• 2005

With the advent of new customs and practice of electronic records, the eUCP provides some useful guidance to accommodate the presentation of the paper documents electronically and also provides necessary rules to allow the UCP and eUCP to work together. There is no denying the fact that many of the UCP articles are not impacted by the presentation of electronic equivalent of paper documents, so the integrated application of the UCP and eUCP will be broad enough to allow for developing practice in this area. This study discusses some theoretical implication for efficient utilization of the global usages of letter of credit through the finding of optimal solution in the state of uncertainty caused by the electronic presentation of documents. This study suggest that the decision rules be developed to show how individuals choose optimal portfolio between the eUCP and the UCP that maximize their expected utility in letter of credit transaction, and also suggest that the optimal portfolio be determined at the point of tangency between the efficient trading line and the highest indifference curve in the mean-variance plane. This study finally recommends three rebuttable doctrines with regard to the relationship between the eUCP and UCP such as linkage characteristics, generation lap propensity, and homothetic application rule, which may be the critical standards for understanding of the integrated usages of the eUCP and UCP.