• The Journal of Information Technology
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• v.4 no.4
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• pp.113-128
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• 2001

The international trade industry is on the brink of a radical Internet-driven transformation. TradeCard is a payment and settlement system that is an alternative to letters of crdeit. That is, TradeCard is a business-to-business e-commerce infrastructure that enables buyers and sellers to conduct and settle international trade transactions securely over the Internet. Paperless, payment-guaranteed international trade transactions - which eliminate the traditional letters of credit with electronic certifications - are widely considered the most difficult B2B transactions to conduct. The TradeCard system was initially built to accommodate and process this complex, cross-border payment type at a US$100 service fee for each transaction of up to US$100,000 since November 1999.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.42
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• pp.133-160
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• 2009

In International trade the buyer and seller are normally separated from on another not only by distance but also by differences in language and culture. It is rarely possible for the performance of obligations to be simultaneous and the performance of contracts therefore calls for trust in a situation in which the parties are unlikely to feel able to trust each other unless they have a longstanding and successful relationship. Thus the seller under an international contract of sale will not wish to surrender documents of title to goods to the buyer until he has at least an assurance of payment, and no buyer will wish to pay for goods until he has received them. A gap of distrust thus exists which is often bridged by the undertaking of an intermediary known and trusted by both parties who will undertake on his own liability to pay the seller the contract price in return for the documents of title and then pass the documents to the buyer in return for the reimbursement. This is a common explanation of the theory behind the documentary letter of credit in which the undertaking of a bank of international repute serves as a "guarantee" to each party that the other will perform his obligations. The independence principle, also referred to as the "autonomy principle", is at the core of letter of credit or bank guarantee law. This principle provides that the letter of credit or bank guarantee is independent of the underlying contractual commitment - that is, the transaction that the credit is intented to secure - between the applicant and the beneficiary ; the credit is also independent of the relationship between the bank and its customer, the applicant. The most important exception to the independence principle is the doctrine of fraud in the transaction. A strict interpretation of the rule that the guarantee is independent of the underlying transaction would lead to the conclusion that neither fraud nor manifest abuse of rights by the beneficiary would constitute an objection to payment. There is one major problem related to "Independent guarantees", namely abusive or unfair callings. The beneficiary may make an unfair calling under the guarantee. The countermeasure of beneficiary's unfair calling divided three cases. First, advance countermeasure namely by contract. In other words, when the formation of the contract, the parties must insert the Force Majeure Clause, Arbitration Clause to Contract, and clear statement to the condition for demand calling. Second, post countermeasure namely by court. Many countries, including the United States, authorize the courts to grant an order enjoining the issuer from paying or enjoining the beneficiary from receiving payment under the guaranty letter. Third, Export Insurance. For example, the Export Credit Guarantees Department is prepared, subject to certain conditions, to cover the risk of unfair calling. Of course, KEIC in Korea is cover the risk of the all things for guarantees. On international projects, contractor performance is usually guaranteed by either a standby letters of credit or Independent guarantee. These instruments will be care the parties.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.33
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• pp.63-89
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• 2007

The UCP is an authoritative compilation of the customs and practice of letters of credit observed by most of the participants in the transaction. It remains the most successful set of private rules for trade ever developed. First issued in 1933, the UCP has been through five revisions, the latest being the present UCP 500, which came into force in 1994. Since 1994, new developments in transport, insurance, electronic commerce and banking industry have spurred the current revision of the rules. The ICC Banking Commission approved UCP 600 on October 25, 2006 by a unanimous vote of 91 to 0. The revision, which will come into effect on July 1, 2007, incorporates a number of changes from UCP 500 as follows : UCP 600 has a leaner set of rules, with 39 articles rather than 49 articles of UCP 500; New sections on "definitions" and "interpretations" have been added to clarify the meaning of ambiguous terms; The phrase "reasonable time" for acceptance or refusal of documents has been replaced by a firm period of five banking days; UCP 600 allows for the discounting of deferred payment credits. However, UCP 600 has two main problems such as the inconsistency with insurance industry and the banking community-oriented rules. We have some months before the commencement of UCP 600. From today to the commencement of UCP 600, we should study the full contents of UCP 600 and the influences on the trade industry.

• International Commerce and Information Review
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• v.7 no.4
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• pp.219-243
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• 2005

The Purpose of this Article is to analyze the examination criteria on the compliance of multimodal transport document in the ISBP. When the goods are taken in charge by the multimodal transport operator, he shall issue a multimodal transport document which, at the option of the consignor, shall be in either negotiable or non-negotiable form. The multimodal transport document shall be signed by the multimodal transport operator or by a person having authority from him. When the multimodal transport document is presented by the beneficiary to the bank in the letter of credit operations, the bank should examinate the bill of exchange and/or shipping documents, including multimodal transport document. There are two rules in connection with examination of the documents in the letter of credit operations. One is the "Uniform Customs and Practice for Documentary Credits(UCP 500)" approved by the Banking Commission in March 10, 1993, the other is the "International Standard Banking Practice for the Examination of Documents under Documentary Letters of Credits(ISBP)" approved by the ICC Banking Commission in October 2002. Therefore, this Article has studied the multimodal transport document presented under documentary credits on the basis of the UCP 500 and the ISBP it reflects.

• Journal of KIISE:Computing Practices and Letters
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• v.16 no.6
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• pp.693-697
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• 2010

In current e-commerce system, it happens that client's confidential information such as credit card numbers, pin numbers, or digital certificate may pass through a web proxy server or an altered proxy server without client's awareness. Even though the confidential information is encrypted and sent through SSL(Secure Sockets Layer) or TLS(Transport Layer Security) protocol, it can be exposed to the risk of sniffing by the digital certificate forgery at the proxy server, which is called the SSL MITM(Man-In-The-Middle) Proxy attack. In this paper, current credit card web-payment systems, which is weak at proxy information alternation attack, are analyzed. A resolution with certificate proxy server is also proposed to prevent the MITM attack.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.237-263
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• 2013

Traditionally, a L/C (letter of credit) has been known as a relatively low risk method of payment. This is why L/C has been used in international trade. However, L/C has a number of weak points such as high cost, long processing time, and complicated documents. Using an electronic L/C is one way to solve those weak points. In Korea, there are two types of electronic L/C. One is the EDI (Electronic Data Interchange) based L/C and the other one is the XML (Extensible Markup Language) based L/C. The former, established in 1990's, is sent from banks to the beneficiary solely through VAN (Value Added Network, KTNET) operators. On the other hand the latter, started in 2005, is sent from banks to KFTC (Korea Financial Telecommunications & Clearings Institute) for management of the L/C balance, as well as to KTNET. So far, paper L/C and EDI based L/C have been used overwhelmingly instead of XML based L/C in spite of the aforesaid disadvantages. In this paper, the authors examined empirically why the users of electronic L/C were reluctant to use XML based L/C. The results are as follows. First, the users of paper L/C were more dissatisfied than the users of electronic L/C due to many factors such as cost, the time required, and information reuse. Second, the users who have more experience with XML based L/C wanted to adopt integrated management with EDI based L/C more than the users who had not experienced XML based L/C. Third, the users who had used more than one form of L/C wanted to adopt integrated management to EDI and XML based L/C more than the users who had only used one form of L/C. Therefore, the authority for electronic L/C should consider a change of the policy from the XML based electronic L/C oriented to integrated management of the various types of L/C.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.38
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• pp.123-152
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• 2008

It is a basic rule in the credit law that original documents are required unless otherwise stipulated by the credit. Due to modern technology enabling documents to be produced in many ways it may not always to decide whether a document is original or a photocopy. In consideration of modern technology and the advent of new methods of document production, ICC has drawn up the provisions on original documents in Article 22 (b) of UCP 400 for the first time. The equivalent provision in UCP 500 is Article 20 (b). As a result of many queries to ICC Banking Commission on what constitutes an "original" documents under UCP 500 and several court cases in connection with original documents, the ICC Banking Commission has issued Decision on original documents in July 1999. Based on this Decision, the ICC dealt it in Article 17 under UCP 600 which came into force on July 1, 2007. There are some changes, replacements and new provisions of UCP 600 concerning original documents and copies. Importers, exporters, insurance companies, other third parties and, above all, banks should pay attention to some changes and implications of UCP 600 concerning original documents and copies. The purpose of this paper is to examine the provisions on original documents and copies under UCP 600. For this purpose, firstly this study deals with the relative provisions on original documents and copies under pre-UCP 600. Secondly this study considers the provisions on original documents and copies under UCP 600. Thirdly this study compares the provisions under pre-UCP 600 with the provisions under UCP 600. Finally this study analyzes the cases decided both home and abroad in connection with original documents. This paper contribute to help the parties to letters of credit to understand the provisions on original documents and copies under UCP 600.

• International Commerce and Information Review
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• v.7 no.1
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• pp.145-168
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• 2005

The International Chamber of Commerce (ICC) eUCP came into force on 1 April 2002. The eUCP is a supplement to the current existing Uniform Customs and Practice for Documentary Credits (UCP500), which governs the use of electronic presentation. The eUCP is not a revision of the UCP. It is a supplement intended to deal with situations where presentations are made electronically. That is to say, the eUCP is a supplement to the UCP that, when used in conjunction with the UCP, will provide the necessary rules for the presentation of the electronic equivalents of paper documents under letters of credit. The purpose of this paper is to study on the criterion of examination of electronic records under the eUCP.

• International Commerce and Information Review
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• v.5 no.2
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• pp.227-243
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• 2003

ISBP(International Standard Banking Practice for the Examination of Documents under Documentary Letters of Credit) was approved in Rome in October 2002 and was published in January 2003. ISBP was already stipulated on the article 13(a) of UCP 500 as the basis of examination of documents. But there was no specific contents on what is ISBP. So, by using the ISBP of the ICC, bank practitioners can bring their practices in line with these followed by their colleagues worldwide. In this Article, the writer will compare with UCP 500 and ISBP and korea banks' practice and consider the possibility of conflict among them. To the conclusion, It is recommended to reestablish the relations between UCP 500 and ISBP. And It is also required to maintain the consistency in using the terms calculation the period and using the reserving wordings.

• The Journal of Information Technology
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• v.6 no.4
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• pp.163-175
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• 2003

SURF is a compliance engine, checking document content against detail in an established agreement. It provides a single vehicle for handling documentary trade settlement, regardless of the risk profile and financing requirements of the parties involved. That is, SURF, a Value Added Service connected to the Core Messaging Platform, is a documentary trade settlement service. It offers users of the system automated document compliance checking and a tool to manage the workflow in connection with documentary trade settlement. The Service supports varying degrees of risk transfer between buyer, sellers and banks and supports transactions from open account to more complex Letters of Credit.