UCP 600 and ISBP 681: An Overview of the Rules and Practices for Documentary Credits

    Documentary credits are a common method of payment in international trade, where a bank undertakes to pay the beneficiary (seller) upon presentation of specified documents that comply with the terms and conditions of the credit. The Uniform Customs and Practice for Documentary Credits (UCP 600) are a set of rules published by the International Chamber of Commerce (ICC) that govern the rights and obligations of parties involved in documentary credit transactions. The International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP 681) is a publication that provides guidance on how to apply the UCP 600 rules in practice, based on the opinions and decisions of the ICC Banking Commission.

    What is UCP 600?

    UCP 600 is the latest version of the UCP rules, which came into effect on July 1, 2007. It consists of 39 articles that cover various aspects of documentary credit transactions, such as definitions, interpretations, obligations, liabilities, discrepancies, waivers, notices, transferability, assignment, and force majeure. UCP 600 aims to provide a clear and concise framework for the parties involved in documentary credit transactions, as well as to reflect the current practices and developments in the trade finance industry. UCP 600 is widely accepted and used by banks, traders, lawyers, and courts around the world as a source of reference and authority.




UCP 600 And ISBP 681.pdf