What is meant by UCP 600?

The UCP 600 (“Uniform Customs & Practice for Documentary Credits”) is the official publication which is issued by the International Chamber of Commerce (ICC). It is a set of 39 articles on issuing and using Letters of Credit, which applies to 175 countries around the world, constituting some $1tn USD of trade per year.

What is latest version of UCP?

UCP 600
First published in 1933, and revised on five occasions since, the latest version is known as UCP 600. This comprises 39 Articles, which establish the requirements necessary to regulate documentary credit operations.

Why is UCP 600 important?

It establishes the conditions under which the majority of banks operate in documentary commercial credit transactions in more than 160 countries. As with previous revisions, the general objective of the UCP 600 is to address important and relevant developments in the banking, transport and insurance industries.

What’s the difference between UCP 400 and 500?

Understanding the differences between UCP 600 and UCP 500 in a letter of credit transaction. Why banks give an express reference to the lc rules? Almost all of the letters of credit issued in swift format having a clause under field “ 40E: Applicable Rules ” telling us that the letter of credit subject to “ UCP Latest Version “.

How many articles are in the UCP 600?

The UCP 600 (“Uniform Customs & Practice for Documentary Credits”) is the official publication which is issued by the International Chamber of Commerce ( ICC ). It is a set of 39 articles on issuing and using Letters of Credit, which applies to 175 countries around the world, constituting some $1tn USD of trade per year.

Is the UCP 600 an accompaniment to the ISBP?

They also allow flexibility for the international parties involved. An accompaniment to the UCP 600 is the International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP), ICC Publication 745. It assists with understanding whether a document complies with the terms of Letters of Credit.

Can a standby be issued under the UCP500?

There are risks and lost opportunities in using UCP500 or UCP600 for standbys. Because of the great advantage of rules, many standbys are issued subject to the UCP. The reason that not all standbys are issued subject to rules is the UCP itself. Drafted for commercial LCs, UCP presents serious difficulties for standby users.