• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.33
• /
• pp.63-89
• /
• 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to clarify the meaning of ambiguous terms; The phrase "reasonable time" for acceptance or refusal of documents has been replaced by a firm period of five banking days; UCP 600 allows for the discounting of deferred payment credits.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
• /
• v.11 no.3
• /
• pp.287-309
• /
• 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
• /
• v.38
• /
• pp.123-152
• /
• 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.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.37
• /
• pp.89-106
• /
• 2008

Since the implementation of International Standard Banking Practice(ISBP) in 2003, ICC Publication No. 645 has become an invaluable help to the documentary credit practitioners including banks, companies, transportation and insurance companies etc. However, with the approval of UCP 600 in October 2006, it has become necessary to provide an updated version of the ISBP. It should be emphasized that this ISBP is an updated version as opposed to a revision of ICC Publication No. 645. The new ISBP has been implemented concurrently with UCP 600 since July 1st, 2007. The first necessity was to replace UCP 500 article numbers with those of UCP 600. Second, where it was felt proper, the contents of some paragraphs that appear in ICC Publication No. 645 and that have been covered in UCP 600 have been removed from the updated version of the ISBP. This explains the reduction in the number of paragraphs from 200 to 185. The international standard banking practices documented in the new ISBP are consistent with UCP 600. This ISBP does not amend UCP 600. It explains how the practices articulated in UCP 600 are applied by documentary practitioners. The new ISBP and the UCP 600 should be read in their entirety and not in isolation. It should be kept in mind that any terms in a documentary credit which modifies or excludes the applicability of a provision of UCP 600 may also have an impact on the international standard banking practices. Consequently, when parties concerned must take into account any terms in a documentary credit that expressly modifies or excludes a rule contained in UCP 600.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.42
• /
• pp.89-107
• /
• 2009

The latest UCP, Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No.600 has been adopted by most banks in the world since July 1, 2007. This work intends to study some points for practical attention of UCP 600 in the field of examining documents and defining some words. Some points for practical attention of UCP 600 in the field of examining documents include the period for examining documents, the conflict with data in the documents, and the fulfilling the function of documents. Some points for practical attention of UCP 600 in the field of defining some words include the complying presentation, negotiation, and nominated banks. Furthermore, this work studies some points for practical attention of UCP 600 in relation to the nomination and the missing in the course of sending documents.

• International Commerce and Information Review
• /
• v.9 no.1
• /
• pp.381-399
• /
• 2007

UCP 600 will now come into effect on 1 July 2007, giving practitioners more than six months to prepare for the change. The vote on the UCP was also a favourable vote on eUCP Version 1.1 which was amended to bring it into conformity with the new rules. ICC Banking commission unanimeusly approved the revised UCP 600 on 26 October 2006 in paris convention. The most important revision of UCP600 have altered the technical and difficult to understand wording of UCP500 into plain simple precise and concise language, The singuler achievement of UCP600 is its elimination of phrase like "reasonable care" "reasonable time" and "an it's face" from the rule. The introduction of separate articles 2 and 3 on "Definitions" and "Interpretation" which contain the concept of "honour" along with the inclusion of certain ISBP wording in UCP, should bring about far greater clarity and precision than in many of the contentions articles in UCP500. The definition of negotiation should help lay to rest the controversies surrounding the terms of negotiation. The removal of reasonable time and the replacement by five banking days should speed the process and make L/Cs more attractive in the market, nevertheless UCP600 have many problems in appling it in practical field. For example the definition of credit, negotiation and purchase it's accepted or undertaken payment draft by accepting bank or deferred payment bank, the second advising bark's position etc. so, I will introduce in this thesis the important revised articles of UCP600 and investigate the problems in applying it in practicle field with reference to the specialist's opinion of the practical field and ICC opinions of drafting Group.

• International Commerce and Information Review
• /
• v.15 no.3
• /
• pp.177-197
• /
• 2013

The updated International Standard Banking Practice(ISBP), International Chamber of Commerce Publication No. 745, was published to bring its contents in line with UCP 600. The ISBP 745 has dealt with A-Q that are commonly arising in the credit transactions and also explains in detail some of the articles of UCP 600 with the proper interpretation. The updated version ISBP 745 involved aligning it with UCP 600, making certain technical adjustments in expression of words such as "in conflict" instead of "inconsistent", etc. Despite the updated ISBP 745, there remains a question. Where the words "from" or "after" are used in regard to something other than a period of shipment or the maturity date of drafts, there is no guidance from the UCP as to its meaning. The party concerned in credit transactions is also required to have a full understanding of ISBP 745 and the articles of UCP 600 in order to acquire the documents preparation and examination facilitating the parties to minimize discrepancies.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.36
• /
• pp.47-84
• /
• 2007

The Uniform Customs and Practice for Documentary Credits ("UCP") may be treated as a useful laboratory for studying the scope and limitations of self regulation. This is due to its almost universal success on a global stage which provides it a perspective rarely available for self regulatory provisions and due to extensive experience of judicial review of it. In this sense, it is worthwhile to examine in brief the latest iteration of the UCP, Publication No. 600 ("UCP600"). This article describes and analyze some of core provisions of the UCP600 from the perspective of their adequacy as an exercise in self regulation. It is attempted first in view of several categories of private rulemaking; definitional rulemaking, default rules, procedural rules, and remedies. After that, it is examined second in view of sound rulemaking which is related to the relative role of law and practice. It points out rich and varied insights into the possibilities and problems associated with private rulemaking in connection with commercial transactions.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.38
• /
• pp.71-96
• /
• 2008

Letters of Credit are the most common method of payment for goods in the export trade, and banking practice relating to letters of credit is standardised by the Uniform Customs and Practice for Documentary Credits, which are a set of rules issued by the International Chamber of Commerce. The current version is UCP 600, which took effect on July 1, 2007. To assist the practitioners of Documentary Credits, the KCCI(Koea Chamber of Commerce and Industry) authorised a new publication-Official Commentary on UCP 600. This new publication added the word "official" in the title. In order to being an official commentary, the terms and expression should be correct and unified. But there is some problems in official commentary and legal phraseology. The problem was appeared that ICC UCP 600's were translated into Korean UCP 600 version. For example, "Issuing Bank", "Applicant", "Port of discharge", "A date of pick-up", "Shipper's load and count", "Courier Receipt", "Charter Party", "Bill of Lading", "Cover Note", "Exclusion Clause", "Insurance Certificate", "Declaration, Underwriter". If can be used 'Official Commentary on UCP 600', the above statements should be a compliment though take a wide professional opinions or held a public hearings. The Purpose of this paper is to point out the problems and substitute the term used and unify the expression in official commentary.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.61
• /
• pp.191-211
• /
• 2014

This paper intends to study some problems in the application of UCP 600 in the international trade transactions with China. Generally speaking, China complies with UCP 600 well. Nevertheless, there are some problems in the application of UCP 600 in China owing to the difference in law and practices. There are some problems in the application of UCP 600 in China owing to the difference of practices under Bills of Exchange Act and The Provisions of the Supreme People's Court on Some Issues Concerning the Trial of Cases of Disputes over Letter of Credit. The Act insists on the formal requirements, the consistency between a letter amount and a figure amount, the unconditional payment character of bills of exchange. The Provisions include the recognition of revocable credits, the difference of standard in examining documents, the difference in the treatment of issuing banks in relation to discrepant documents. These aforesaid matters of the Act and the Provisions are inconsistent with the practices under the UCP 600. There are two main problems in the operation of letters of credit in China. One is the lack of concerned parties' practice knowledge in relation to letters of credit in China. The other is the inactive stance of nominated banks in China. There are two main problems in relation to judiciary institutions in China. First, judges in China tend to abuse the injunctions owing to the lack of understanding in relation to letters of credit. Secondly, there are inconsistency in the court ruling in China.