UCP 600 / ISBP 745 Reference

Rules apply when the credit expressly states it is subject to UCP 600. They are binding on all parties unless expressly modified or excluded by the credit.

Defines advising bank, applicant, banking day, beneficiary, complying presentation, confirmation, credit, honour, issuing bank, negotiation, nominated bank, presentation, and presenter.

'On or about' = ±5 calendar days. 'From' and 'after' when determining a maturity date exclude the mentioned date. Branches in different countries are separate banks.

A credit is separate from the sale contract. Banks deal with documents, not goods or performance. The applicant cannot use the underlying contract as a defence against the beneficiary.

Banks deal with documents and not with goods, services or performance to which the documents may relate.

Credit must state whether available by sight payment, deferred payment, acceptance or negotiation. Place of bank at which credit is available is the place for presentation.

Issuing bank is irrevocably bound to honour a complying presentation from the moment it issues the credit.

Confirming bank is irrevocably bound to honour or negotiate as from the time it adds its confirmation.

Advising bank that is not the confirming bank advises without any undertaking to honour or negotiate. It must satisfy itself as to apparent authenticity.

A credit can neither be amended nor cancelled without the agreement of the issuing bank, confirming bank (if any) and beneficiary. Partial acceptance of an amendment is not allowed.

Unless nominated bank is confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate.

Bank has a maximum of five banking days following the day of presentation to determine if a presentation is complying. Data need not be identical to, but must not conflict with, other data in the same document or the credit. Non-documentary conditions are disregarded.

If refusal, bank must give single notice by telecommunication no later than the close of the fifth banking day following presentation. Notice must state each discrepancy.

At least one original of each document stipulated in the credit must be presented. Bank shall treat as an original any document apparently signed, marked, or produced by the issuer.

Must appear issued by beneficiary, made out in name of applicant, in same currency as credit, and need not be signed. Description of goods must correspond with that in the credit.

Must indicate name of carrier and be signed by carrier or agent. Must indicate taking-in-charge, dispatch or shipment date.

Must indicate name of carrier and be signed by carrier, master or agent. Must indicate goods have been shipped on board a named vessel at the port of loading stated in the credit. On-board notation determines shipment date.

May be signed by master, owner, charterer or agent. Need not indicate name of carrier. Only acceptable where credit expressly permits.

Must indicate name of carrier, that goods have been accepted for carriage, and date of issuance. Actual date of shipment is the date on the document unless a specific notation states otherwise.

Must appear issued by insurer / underwriter or agent. Coverage must be for at least 110% of CIF or CIP value. Must be in same currency as credit. Cover notes not acceptable.

If expiry falls on a day when bank is closed, expiry extends to next banking day. Latest shipment date is NOT extended by this rule.

'About' or 'approximately' allows ±10%. Otherwise, quantity tolerance ±5% is allowed provided quantity is not stated in packing units and total drawings do not exceed the credit amount.

Partial drawings and shipments are allowed unless credit stipulates otherwise. Shipments on same transport document on same voyage to same destination are not partial.

If instalment within given periods is not made, credit ceases to be available for that and any subsequent instalment.

Banks assume no liability or responsibility for form, sufficiency, accuracy, genuineness, falsification or legal effect of any document.