• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.51
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• pp.187-210
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• 2011

International transactions have the threat of non-payment by the buyer or non-performance by the seller. Parties tend to search for additional means of securing performance and payment beyond the mere agreement in the contract. Such security may be achieved by means of a letter of credit. When contracting parties have agreed to pay by means of a letter of credit, the buyer's bank takes upon itself the obligation to pay the purchase price when the seller tenders the documents that are stipulated in the letter of credit. The documents must comply strictly with the terms of the credit.. The documents play a crucial role in letter of credit transaction. The principles of abstraction, separability and strict compliance governing the letter of credit transaction are considered. The concept of fundamental breach of Article 25 CISG was discussed. This article examines whether a failure to deliver documents conforming to the terms of the letter of credit can constitute a fundamental breach of the sales contract as defined by Article 25 of the CISG by the seller and thereby enable the buyer to avoid the contract. For letter of credit transactions it should be accepted that the delivery of non-performing documents constitutes a fundamental breach, if the result of this breach is that the bank refuses to pay the price for the goods. On the other hand, in the interpretation of Article 25 CISG, it should be noted that if the parties have agreed to payment by means of a letter of credit, they have simultaneously agreed to apply the strict compliance principle to the delivery of documents in the sales contract. Finally the parties should ensure that inconsistency between the requirements under the documentary credit and the requirements under the contract of sale is avoided, since the buyer may be in breach of his payment obligation if the seller cannot get paid under the documentary credit when his documents conform with the contract of sale.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.631-655
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• 2000

This article is focused on the review of the judgement standard for compliance of the documents in international standard banking practice. Since the establishment of Uniform Customs and Practice for Documentary Credits, The practices of the Credit transactions has been formed and developed with the rapidly changing progress of the international trade environment. but though the international standard banking practice have meaning to suggest a new examination standard, in practice, there are some problems on the judgement of the compliance of the documents. Therefore, for the useful judgement standard for compliance of the documents, the range of the standard should become concrete and simple so that all the related parties can forecast. and the opinions and interpretations published by ICC Banking Committee are recommended to be used, systematized and activated. and also with the change of the trade environment, the changed standard practice could be published annually for the useful use. and it will be necessary to consider to publish the publications in the form of the "White Book" Last, it is necessary to accept the changes by the needs of the times as the international standard banking practice promptly and analysis accurately its problems for the times of the electronic commerce, so that Credit systems should be settled and developed continuously as the useful means of the settlement of the proceeds conquering of the characteristics originated from the international transactions between the parties concerned.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.25
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• pp.99-119
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• 2005

Recently, the export claims related to the compliance of the commercial invoice are increasing. This paper aims to review the basic requirements of the invoice, and two theories on the document compliance, i.e., the strict compliance and the substantial compliance, and to analyse the substantial compliance of the invoice through some recent cases under the UCP 500, ICC's opinions and the International Standard Banking Practice (ISBP). As regards the compliance of the invoice, a majority of the cases has held that it must comply strictly with the credit terms ("strict compliance rule"). However, a minority of courts and credit industry standards such as the UCP and ISBP published by ICC take a different approach, infusing the credit law notions such as equity, "substantial compliance rule", etc. The extent of the substantial compliance of the invoice is particularly explained in the above-mentioned invoice paragraphs of the ISBP and supported by a large number of ICC's official opinions. Especially, the parties and descriptions in the invoice must correspond with those in the credit, being not inconsistent with the other documents. Other issues related to invoices such as a tolerance of the quantity, the amount, and the number of originals or copies, etc. must comply with the credit terms substantially.

• Journal of the Korean Society for Marine Environment & Energy
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• v.13 no.3
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• pp.135-150
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• 2010

At the Intergovernmental Meeting held in 1972, the London Convention was adopted to prevent marine pollution from dumping of wastes and other matter. After that, at the special meeting held at the Headquarters of the International Maritime Organization in 1996, the London Convention was revised to consider advances in technology of treatment and disposal of wastes and to reflect changes in understanding of marine environment and then the London Protocol was concluded. The London Protocol states more concrete management system for ocean dumping than the London Convention and also provides that the Meeting of Contracting Parties shall establish those procedures and mechanisms necessary to assess and promote compliance with the Protocol. With the London Protocol in force since 24 March 2006, the Meeting of Contracting Parties adopted the 'Compliance Procedures and Mechanisms (CPM) pursuant to Article 11 of the 1996 Protocol to the London Convention 1972' and established the Compliance Group in 2007. According to the CPM, members of the Compliance Group shall be nominated by Contracting Parties, based on equitable and balanced geographic representation of the five Regional Groups of the United Nations, and elected by the Meeting of Contracting Parties. In 2009, the Republic of Korea nominated a member of the Compliance Group to be subsequently elected by the Meeting of Contracting Parties with the approval of other states in Asia Group. Through the United Nations Regional Group System based on geographical identity or political affinity, Contracting Parties to the London Protocol are expected to form a voting bloc or to exchange information in meetings on the London Protocol. In this sense, it is noteworthy that the London Protocol introduced marine environmental management system for comprehensive prohibition of ocean dumping with exception of the so-called 'reverse-list' which had been earlier adopted by the 'Convention for the Protection of the Marine Environment of the North-East Atlantic, 1992 (OSPAR)' whose contracting parties belonged to Western European and Other States Group. In recent years, the jurisdiction of London Protocol has been extended to protect and preserve the marine environment from all sources of pollution. This will make the United Nations Regional Group System play more important roles in the activities associated with the London Protocol. For this reason, this article has considered characteristics of the United Nations Regional Group System and has analyzed influences of this Regional Group System in meetings on the London Protocol. This could provide preliminary information for the Republic of Korea to give due consideration to the United Nations Regional Group System on the activities associated with the London Protocol.

• Journal of Fisheries and Marine Sciences Education
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• v.20 no.3
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• pp.381-389
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• 2008

In the present paper, the regulatory compliance on the report responsibility relating to marine pollution prevention working plan for ship recycling in accordance with the Marine Environment Management Law in Korea was examined. In addition, plans to raise the regulatory compliance based on the results of the regulatory compliance questionnaire survey and interview between the concerned parties were suggested. The result of the regulatory compliance revealed that the degree of regulatory compliance of all groups is 52.7%, the government official group is 56.5%, marine industry related group is 48.6% and ship recycling group is 48.6%. Counterplans to raise the regulatory compliance, such as public relations for the ship recycling and marine industry related group and the development of simple standardized report form were suggested based on the results of the regulatory compliance survey.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.41
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• pp.79-102
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• 2009

L/C transaction, the most important issue for the seller and the buyer is the theory of documentary transaction and the theory of strict compliance which are the principles of L/C transactions. According to the leading cases in England and America where the practice of L/C transactions was created and developed, the descriptions of the commodities specified on all the documents which are submitted based on an L/C, should be identical to the descriptions of commodities specified in the L/C. And further, many leading cases of L/C continuously repeat to emphasize strict compliance. However, the recent leading cases in and out of the country show that the principle of strict compliance is being weakened. The leading cases in America show two trends of weakening the principle of strict compliance. That is, on the contrary to strict compliance, tends to apply substantial compliance (which puts more value on the substance of the documents). These leading cases reflect the attitudes of the judicial and the legislative authorization that don't want to approve formal approach to the commercial law. Recently, the Supreme Court of Korea is giving a decision on the principle of strict compliance, "The documents attached to an L/C should strictly comply with the conditions in the L/C, but it doesn't mean that they should be perfectly identical without any mistake in words. In case the bank can understand through reasonable care that a small mistake in words is too trivial to give different meaning or to give damage to the conditions of the L/C, the documents are regarded to comply with the conditions of the L/C. However, the judgment should be based on whether the difference between the documents and the L/C can be admitted by the international standard bank transaction practice or not." This decision tells that the principle of strict compliance is quite much modified so application of this modification can't be ignored. However, from the viewpoint of the party who requests to open an L/C, there is a criticism that a bank's arbitrary judgement can be involved. Therefore, reviewing the original purpose of L/C transactions (activating international transactions), the principle of strict compliance may be thought old-fashioned because it emphasizes a form, but in reality, for prompt transaction and payment, the principle of strict compliance should be observed in L/C transactions. And further, if a legislative device is prepared to systematically compensate for several side-effects, the principle of strict compliance will improve dynamic flow of prompt and low-costly L/C transactions. On the other hand, it will be able to protect the interested parties.

• Journal of Information Technology Applications and Management
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• v.16 no.1
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• pp.1-20
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• 2009

Negotiation is a process of reaching an agreement on the terms of a transaction. such as price, quantity, for two or more parties. Negotiation tries to maximize the benefits for all parties concerned. instead of using human-based negotiation. the e-commerce environment provides such an environment as adopting automated negotiation. Thus. choosing agent technology is appropriate for an automatic electronic negotiation platform. since autonomous software agents strive for the best deal on behalf of the human participants. Negotiation agents need a clear-cut definition of negotiation models or strategies. In reality, most bargaining systems embody nearly one negotiation model. In this article. we present a mobile agent negotiation system with reusable negotiation strategies that allows agents to dynamically embody a user's favorite negotiation strategy which can be preinstalled as a component in the system. We develop a prototype system, which is fully implemented in compliance with FIPA specifications, and then. describe the benefits of using the system.

• Journal of the Korean Society of Marine Environment & Safety
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• v.18 no.5
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• pp.496-504
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• 2012

In the field of environmental protection, close co-operation between Contracting Parties is strongly required and the reporting obligation under MARPOL 73/78 is playing an important role as a part of international co-operation for the environmental protection. In this paper, I review the meaning of reporting obligation under MARPOL 73/78 from the perspective of the international law, and investigate the status of implementation for the reporting obligation. For this purpose, I analyze status of implementation for last 10 years from 2001 to 2010 regarding reporting obligations under MARPOL 73/78 in accordance with MEPC/Circ.318. Finally, I suggest the way forward to improve Contracting Parties' compliance with reporting obligations through this analysis.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.22
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• pp.173-197
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• 2004

Letter of Credit between buyer and seller in International Trade Transaction is the means of payment which makes International Trade operate smoothly by guaranteeing an exporter against non-payment and an importer against non-delivery. Therefore, the parties to a sale apply UCP500 established by the International Chamber of Commerce, in accordance with principle of the freedom of contract among the parties concerned, to look to their own legal stability. However, we may recognize some cases to have been applied principle of faith and trust, one of the dominant principles of the civil law, by the Korean Supreme Court and other cases to have not been applied that principle by the Korean Supreme Court. The Court shall apply UCP500 strictly as long as the parties concerned adopt UCP500 in view of the legal stability. In other words, in case that the Court applies principle of faith and trust to the case related to L/C, this rule - principle of faith and trust - should apply to the subject matter which have not stipulated in UCP500 under certain restriction. We suggest keeping in mind points to korean companies as follows; First, the parties to a sale shall understand L/C basis transaction and principles related to L/C deeply. Second, the exporter shall prepare documents in compliance with L/C and fulfil his or her obligation according to UCP500 and L/C related to the contract. Third, as buyer or importer, when he or she receive the shipping documents with discrepancies from the notifying bank, he or she makes him or herself clear to all the parties concerned. Fourth, as bank, she shall examine all the documents according to UCP500 and L/C related to the contract, and if any document with discrepancies, the bank, by all means, shall approach applicant first, and then decide whether to pay the credit amount to beneficiary or not to.

• 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.