UCP600 and UCP500

UCP600 and UCP500

UCP600 & UCP500 Compared

Part I The Modifications and Changes in General

a Given 14 definitions at first and 12 interpretations to clarify the meaning of ambiguous terms, refer to Art 2 & 3

b Agreed that the issuing bank must reimburse the nominated bank even though the documents are lost in the transmitting however, the presentation must be complying

c ……

Part II Detailed Comparison for Each Article Article 1 Application of UCP 2

Article 2 Definitions 2

Article 3 Interpretations 3

Article 4 Credits v Contracts 4

Article 5 Documents v Goods, Services or Performance 4

Article 6 Availability, Expiry Date and Place for Presentation 4

Article 7 Issuing Bank Undertaking 5

Article 8 Confirming Bank Undertaking 6

Article 9 Advising of Credits and Amendments 7

Article 10 Amendments 8

Article 11 Teletransmitted and Pre-Advised Credits and Amendments 8

Article 12 Nomination 9

Article 13 Bank-to-Bank Reimbursement Arrangements 9

Article 14 Standard for Examination of Documents 10

Article 15 Complying Presentation 12

Article 16 Discrepant Documents, Waiver and Notice 12

Article 17 Original Documents and Copies 13

Article 18 Commercial Invoice 14

Article 19 Transport Document Covering at Least Two Different Modes of Transport 15

Article 20 Bill of Lading 17

Article 21 Non-Negotiable Sea Waybill 19

Article 22 Charter Party Bill of Lading 20

Article 23 Air Transport Document 21

Article 24 Road, Rail or Inland Waterway Transport Documents 23

Article 25 Courier Receipt, Post Receipt or Certificate of Posting 24

Article 26 "On Deck", "Shipper's Load and Count", “Said by Shipper to Contain” and Charges Additional to Freight 25

Article 27 Clean Transport Document 25

Article 28 Insurance Document and Coverage 25

Article 29 Extension of Expiry Date or Last Day for Presentation 27

Article 30 Tolerance in Credit Amount, Quantity and Unit Prices 27

Article 31 Partial Drawings or Shipments 27

Article 32 Instalment Drawings or Shipments 28

Article 33 Hours of Presentation 28

Article 34 Disclaimer on Effectiveness of Documents 28

Article 35 Disclaimer on Transmission and Translation 29

Article 36 Force Majeure 29

Article 37 Disclaimer for Acts of an Instructed Party 29

Article 38 Transferable Credits 30

Article 39 Assignment of Proceeds 32

Part I The Modifications and Changes in General

a Given 14 definitions at first and 12 interpretations to clarify the meaning of ambiguous terms, refer to Art 2 & 3 And we need pay attention to the change about ‘negotiation’

b Agreed that the issuing bank must reimburse the nominated bank even though the documents are lost in the transmitting however, the presentation must be complying

c Denied the practice that banks stipulate the clause about which the amendment should be accepted by beneficiary who did not send any rejected advice in certain time, refer to sub-article 10

j The expression is straightaway, precise and compact, for example, the wording for ‘unless the credit expressly stipulates…’ is not used in UCP600

k The clause about shipment date has changed, refer to sub-article 19 a ii, 20 a ii, 21 a ii and 22 a ii, especially to note the effect to received bill of lading

l Canceled the blocking frame about the form of clauses

m The number of the clauses has decreased to 39 from original

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n The deferred payment credit could be discounted or purchased

o Added the acts of terrorism as a kind of Force Majeure, refer to Art 36

p Confirmed that the issuing bank may be a transferring bank, refer to sub-article 38 b

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Part II Detailed Comparison for Each Article

Article 1 Application of UCP

The Uniform Customs and Practice for Documentary

Credits, 2007 Revision, ICC Publication no 600 (“UCP”)

are rules that apply to any documentary credit (“credit”)

(including, to the extent to which they may be applicable,

any standby letter of credit) when the text of the credit

expressly indicates that it is subject to these rules

They are binding on all parties thereto unless expressly

modified or excluded by the credit

Article 2 Definitions

For the purpose of these rules:

Advising bank means the bank that advises the credit

at the request of the issuing bank

Applicant means the party on whose request the credit

is issued

Banking day means a day on which a bank is regularly

open at the place at which an act subject to these rules is

to be performed

Beneficiary means the party in whose favour a credit is

issued

Complying presentation means a presentation that is

in accordance with the terms and conditions of the credit,

the applicable provisions of these rules and international

standard banking practice

Confirmation means a definite undertaking of the

confirming bank, in addition to that of the issuing bank, to

honour or negotiate a complying presentation

Confirming bank means the bank that adds its

confirmation to a credit upon the issuing bank’s

authorization or request

Credit means any arrangement, however named or

described, that is irrevocable and thereby constitutes a

definite undertaking of the issuing bank to honour a

complying presentation

Honour means:

a to pay at sight if the credit is available by sight

payment

b to incur a deferred payment undertaking and pay

at maturity if the credit is available by deferred

payment

c to accept a bill of exchange (“draft”) drawn by the

beneficiary and pay at maturity if the credit is

available by acceptance

Issuing bank means the bank that issues a credit at the

request of an applicant or on its own behalf

Negotiation means the purchase by the nominated

bank of drafts (drawn on a bank other than the

nominated bank) and/or documents under a

It is similar to the Art 1 of 500, however there are three differences:

‘any’ replace ‘all’

‘when … rules’ replace ‘where … credit’

‘unless … credit’ replace ‘unless otherwise … credit’

This article is new added, it clarifies many definitions which didn’t defined in 500, however, some items ever published in some publications of ICC including 500, such as Banking day, credit, etc

Of cause, some items are first presented in

600 or have been amended so that we should focus:

‘Complying presentation’ is a new term, under 500, we usually used ‘ the documents

to be presented in compliance’, and the new one is more concision

In 500, the Art 2 gave the mean of credit and four types L/C, and in Art 6 the irrevocableand revocable L/C were listed at the same time, however, in 600, the revocable L/C has been deleted So, we should note that all L/C are irrevocable under UCP600

Another difference is that the original four types are changed into three categories, which are called by a joint name - Honour, which includes available by sight payment, deferred payment and acceptance, and theNegotiation was deleted from the basic types

It was changed to a burchase behalf other than payment type

In 500, negotiation means the giving of value for draft(s) and/or document(s), which borrowed the jural definition But there were many issues and problems in the banking practice, therefore it is amended in 600 And

complying presentation, by advancing or agreeing to

advance funds to the beneficiary on or before the

banking day on which reimbursement is due to the

nominated bank

Nominated bank means the bank with which the credit

is available or any bank in the case of a credit available

with any bank

Presentation means either the delivery of documents

under a credit to the issuing bank or nominated bank or

the documents so delivered

Presenter means a beneficiary, bank or other party that

makes a presentation

Article 3 Interpretations

For the purpose of these rules:

Where applicable, words in the singular include the

plural and in the plural include the singular

A credit is irrevocable even if there is no indication to that

effect

A document may be signed by handwriting, facsimile

signature, perforated signature, stamp, symbol or any

other mechanical or electronic method of authentication

A requirement for a document to be legalized, visaed,

certified or similar will be satisfied by any signature,

mark, stamp or label on the document which appears to

satisfy that requirement

Branches of a bank in different countries are considered

to be separate bank

Terms such as "first class", "well known", "qualified",

"independent", "official", "competent" or "local" used to

describe the issuer of a document allow any issuer

except the beneficiary to issue that document

Unless required to be used in a document, words

such as "prompt", "immediately" or "as soon as possible"

will be disregarded

The expression "on or about" or similar will be

interpreted as a stipulation that an event is to occur

during a period of five calendar days before until five

calendar days after the specified date, both start and end

dates included

in 500 Art14 F that is about payment, acceptance, and negotiation under reserve or against an indemnity has been deleted And it

is defined as ‘purchase…drafts…under a complying presentation’ What is the relationship between ‘honour’ and

‘negotiation’?

Please think who are the other parties

It means the singular and plural in UCP600 has the same meaning, which might refer our Chinese language, I think

It is similar to the Art 6 C of 500, in fact, under UCP600, only irrevocable credit was stipulated

It is similar to the Art 20 B of 500

It is similar to the Art 20 D of 500, however the words ‘to be authenticated, validated’ are deleted from this clause

It is similar to the last sentence of 500 Art 2 and ‘separate’ replaces ‘another’

It is similar to the Art 20 A of 500 and more concision

It is similar to the Art 46 B of 500, but it is more rigorous and extensive since Art46 B was applicable to Dates for Shipment

It is similar to the Art 46 C of 500

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The words "to", "until", "till", “from” and “between” when

used to determine a period of shipment include the date

or dates mentioned, and the words “before” and "after"

exclude the date mentioned

The words “from” and "after" when used to determine

a maturity date exclude the date mentioned

The terms "first half" and "second half" of a month shall

be construed respectively as the 1st to the 15th and the

16th to the last day of the month, all dates inclusive

The terms "beginning", "middle" and "end" of a month

shall be construed respectively as the 1st to the 10th, the

11th to the 20th and the 21st to the last day of the month,

all dates inclusive

Article 4 Credits v Contracts

a A credit by its nature is a separate transaction from the

sale or other contract on which it may be based Banks

are in no way concerned with or bound by such contract,

even if any reference whatsoever to it is included in the

credit Consequently, the undertaking of a bank to

honour, to negotiate or to fulfil any other obligation

under the credit is not subject to claims or defences by

the applicant resulting from its relationships with the

issuing bank or the beneficiary

A beneficiary can in no case avail itself of the contractual

relationships existing between banks or between the

applicant and the issuing bank

b An issuing bank should discourage any attempt by the

applicant to include, as an integral part of the credit,

copies of the underlying contract, proforma invoice

and the like

Article 5 Documents v Goods, Services or

Performance

Banks deal with documents and not with goods, services

or performance to which the documents may relate

Article 6 Availability, Expiry Date and Place for

Presentation

a A credit must state the bank with which it is available

or whether it is available with any bank A credit

available with a nominated bank is also available with the

It is the same with the Art 47 C of 500

It is the same with the Art 47 D of 500

The section a is the same with Art 3 of 500 except that it used the word ‘honour’

It is similar to the Art 5 A ii of UCP500 butthe italic documents were new added in UCP600

It is similar to the Art 4 of 500

It is similar to the Art 10 B of 500 However this clause gives a new item ‘Availability’and admits freely available, but in Art 10 of

500 only negotiable L/C could be admitted as freely available

b A credit must state whether it is available by sight

payment, deferred payment, acceptance or negotiation

c A credit must not be issued available by a draft drawn

on the applicant

d i A credit must state an expiry date for presentation

An expiry date stated for honour or negotiation will be

deemed to be an expiry date for presentation

ii The place of the bank with which the credit is

available is the place for presentation The place

for presentation under a credit available with any

bank is that of any bank A place for presentation

other than that of the issuing bank is in addition to

the place of the issuing bank

e Except as provided in sub-article 29 (a), a

presentation by or on behalf of the beneficiary must be

made on or before the expiry date

Article 7 Issuing Bank Undertaking

a Provided that the stipulated documents are presented

to the nominated bank or to the issuing bank and that

they constitute a complying presentation, the issuing

bank must honour, if the credit is available by:

i sight payment, deferred payment or acceptance with

the issuing bank;

ii sight payment with a nominated bank and that

nominated bank does not pay;

iii deferred payment with a nominated bank and that

nominated bank does not incur its deferred payment

undertaking or, having incurred its deferred payment

undertaking, does not pay at maturity;

iv acceptance with a nominated bank and that

nominated bank does not accept a draft drawn on it or,

having accepted a draft drawn on it, does not pay at

maturity;

v negotiation with a nominated bank and that

nominated bank does not negotiate

b An issuing bank is irrevocably bound to honour as

of the time it issues the credit

It is the same with the Art 10 A of UCP500

It differs from ISBP P56 since ‘must not’ i/o

‘should not’, it is compelling denial

It is a clause about expiry date and place for presentation and similar to the Art 42 of UCP500 However I don’t find the clause for

‘21 days’ like Art 43 A of UCP500 in UCP600

It is new added clause in UCP600

It is similar to the Art 42 B of UCP500

In UCP500, the liability of Issuing and Confirming Banks were prescribed in Art 9

In UCP600, they are divided into two clauses Art 7 and Art 8

In the new wording, it is more precise This sentence of ‘a.i.’ declares the basic liability of Issuing Bank Those sentences from ‘a.ii.’ to

‘a.v.’ declare that when the nominated bank dishonoured the Issuing Bank must perform its basic liability still

The item i is ‘Straight L/C’

In UCP500, an irrevocable credit constituted

a ‘definite undertaking of the Issuing Bank’, however, in this clause ‘b’, Issuing Bank is

‘irrevocably bound to honour’, which is the same meaning as above

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c An issuing bank undertakes to reimburse a nominated

bank that has honoured or negotiated a complying

presentation and forwarded the documents to the issuing

bank Reimbursement for the amount of a complying

presentation under a credit available by acceptance or

deferred payment is due at maturity, whether or not the

nominated bank prepaid or purchased before maturity

An issuing bank's undertaking to reimburse a

nominated bank is independent of the issuing bank’s

undertaking to the beneficiary

Article 8 Confirming Bank Undertaking

a Provided that the stipulated documents are presented

to the confirming bank or to any other nominated bank

and that they constitute a complying presentation, the

confirming bank must:

i honour, if the credit is available by

a sight payment, deferred payment or

acceptance with the confirming bank;

b sight payment with another nominated bank

and that nominated bank does not pay;

c deferred payment with another nominated

bank and that nominated bank does not incur its

deferred payment undertaking or, having incurred

its deferred payment undertaking, does not pay at

maturity;

d acceptance with another nominated bank and

that nominated bank does not accept a draft drawn

on it or, having accepted a draft drawn on it, does

not pay at maturity;

e negotiation with a nominated bank and that

nominated bank does not negotiate

ii negotiate, without recourse, if the credit is

available by negotiation with the confirming bank

b A confirming bank is irrevocably bound to honour or

negotiate as of the time it adds its confirmation to the

credit

c A confirming bank undertakes to reimburse another

nominated bank that has honoured or negotiated a

complying presentation and forwarded the documents to

the confirming bank Reimbursement for the amount of a

This clause provides two undertakings of Issuing Bank, one is to reimburse a nominated bank, and the other is to pay to the beneficiary In UCP500, although there were

no details like UCP600, but the fact exited in the practice Of course, the clear documents

or complying presentation is necessary both

in the past and future

In fact, this article reconfirms the first responsibility to pay beneficiary even a nominated bank (if any) by Issuing Bank

This clause is almost same as last article, however, there are some difference since the Confirming Bank is other than Issuing Bank Therefore the sub-clause ‘a.ii’ is about negotiate without recourse when the Confirming Bank is nominated negotiating bank by L/C and ‘b’ increases the word

‘negotiate’ compare with Issuing Bank

Any way, a Confirming Bank acts the role of second Issuing Bank, therefore it should undertake the same responsibility as the Issuing Bank

It is similar to the relative section of Art 7

complying presentation under a credit available by

acceptance or deferred payment is due at maturity,

whether or not another nominated bank prepaid or

purchased before maturity A confirming bank's

undertaking to reimburse another nominated bank is

independent of the confirming bank’s undertaking to

the beneficiary

d If a bank is authorized or requested by the issuing

bank to confirm a credit but is not prepared to do so, it

must inform the issuing bank without delay and may

advise the credit without confirmation

Article 9 Advising of Credits and Amendments

a A credit and any amendment may be advised to a

beneficiary through an advising bank An advising bank

that is not a confirming bank advises the credit and any

amendment without any undertaking to honour or

negotiate

b By advising the credit or amendment, the advising

bank signifies that it has satisfied itself as to the apparent

authenticity of the credit or amendment and that the

advice accurately reflects the terms and conditions of the

credit or amendment received

c An advising bank may utilize the services of another

bank (“second advising bank”) to advise the credit and

any amendment to the beneficiary By advising the credit

or amendment, the second advising bank signifies that it

has satisfied itself as to the apparent authenticity of the

advice it has received and that the advice accurately

reflects the terms and conditions of the credit or

amendment received

d A bank utilizing the services of an advising bank or

second advising bank to advise a credit must use the

same bank to advise any amendment thereto

e If a bank is requested to advise a credit or amendment

but elects not to do so, it must so inform, without delay,

the bank from which the credit, amendment or advice

has been received

f If a bank is requested to advise a credit or amendment

but cannot satisfy itself as to the apparent authenticity of

the credit, the amendment or the advice, it must so

inform, without delay, the bank from which the

instructions appear to have been received If the

advising bank or second advising bank elects

It is similar to Art 9 C of UCP500

In fact the liability of Issuing and Confirming Bank is not changed essentially

This article adds some new element comparing with Art 7 of UCP500

It clarifies the independence of Advising Bank which does not undertake to honour or negotiate except that it is Confirming Bank at the same time

It is similar to Art 7 A of UCP500

In banking practice, lots of L/C are advised though second advising bank, but the UCP500 has no relative clause In UCP600, this is confirmed and the second advising bank has the same right with first one

It appeared in Art 11 B of UCP500, and now

it has been clarified in special clause of UCP600 Please refer to R401

It is similar to Art 7 A of UCP500

It is similar to Art 7 B of UCP500

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nonetheless to advise the credit or amendment, it must

inform the beneficiary or second advising bank that it has

not been able to satisfy itself as to the apparent

authenticity of the credit, the amendment or the advice

Article 10 Amendments

a Except as otherwise provided by article 38, a credit

can neither be amended nor cancelled without the

agreement of the issuing bank, the confirming bank,

if any, and the beneficiary

b An issuing bank is irrevocably bound by an

amendment as of the time it issues the amendment A

confirming bank may extend its confirmation to an

amendment and will be irrevocably bound as of the time

it advises the amendment A confirming bank may,

however, choose to advise an amendment without

extending its confirmation and, if so, it must inform the

issuing bank without delay and inform the beneficiary in

its advice

c The terms and conditions of the original credit (or a

credit incorporating previously accepted amendments)

will remain in force for the beneficiary until the

beneficiary communicates its acceptance of the

amendment to the bank that advised such amendment

The beneficiary should give notification of acceptance or

rejection of an amendment If the beneficiary fails to give

such notification, a presentation that complies with the

credit and to any not yet accepted amendment will be

deemed to be notification of acceptance by the

beneficiary of such amendment As of that moment the

credit will be amended

d A bank that advises an amendment should inform the

bank from which it received the amendment of any

notification of acceptance or rejection

e Partial acceptance of an amendment is not allowed

and will be deemed to be notification of rejection of

the amendment

f A provision in an amendment to the effect that the

amendment shall enter into force unless rejected by the

beneficiary within a certain time shall be disregarded

Article 11 Teletransmitted and Pre-Advised Credits

and Amendments

a An authenticated teletransmission of a credit or

The Art 9 D of UCP500 stipulated about amendments, in UCP600, ICC draws a separate clause about it Then, we couldpresume that a mass of problems and issues about amendments happened in banking practice Please note it does not state applicant at all

Section a is similar to Art 9 D i of UCP500

It is almost same as Art 9 D ii of UCP500 The Confirming Bank has the independence whether it extends its confirmation to an amendment There is no change comparing with UCP500

It is the same with Art 9 D iii of UCP500 However, there is a case in dilemma L/C required that the goods be shipped under four periods, each 100mt in Jan, Feb, Mar and Apr Now Issuing Bank gave an amendment, which the shipment periods were changed to May, Jun, Jul, and Aug Beneficiary did not send any notificationand shipped the first 100mt in Jan, however, it shipped the second 100mt in Jun Could we consider the beneficiary accept the amendment? If it is positive, is the acceptation valid?

It is new content, however, in UCP600 draft of Jun 2006, the ‘should’ was i/o by

‘must’ The different tone decreases the liability of the bank that advises the amendment

It is similar to Art 7 D iv of UCP500

It comes from ICC R315 ICC considered that those practices changed the irrevocable nature of the L/C irrevocable undertaking And it disobeys some states’ laws

It is similar to Art 11 A i of UCP500, but the expression is stronger than it

amendment will be deemed to be the operative credit or

amendment, and any subsequent mail confirmation shall

be disregarded

If a teletransmission states "full details to follow" (or

words of similar effect), or states that the mail

confirmation is to be the operative credit or amendment,

then the teletransmission will not be deemed to be the

operative credit or amendment The issuing bank must

then issue the operative credit or amendment without

delay in terms not inconsistent with the teletransmission

b A preliminary advice of the issuance of a credit or

amendment (“pre-advice”) shall only be sent if the

issuing bank is prepared to issue the operative credit or

amendment An issuing bank that sends a pre-advice is

irrevocably committed to issue the operative credit or

amendment, without delay, in terms not inconsistent with

the pre-advice

Article 12 Nomination

a Unless a nominated bank is the confirming bank, an

authorization to honour or negotiate does not impose

any obligation on that nominated bank to honour or

negotiate, except when expressly agreed to by that

nominated bank and so communicated to the

beneficiary

b By nominating a bank to accept a draft or incur a

deferred payment undertaking, an issuing bank

authorizes that nominated bank to prepay or

purchase a draft accepted or a deferred payment

undertaking incurred by that nominated bank

c Receipt or examination and forwarding of documents

by a nominated bank that is not a confirming bank

does not make that nominated bank liable to honour or

negotiate, nor does it constitute honour or negotiation

Article 13 Bank-to-Bank Reimbursement

Arrangements

a If a credit states that reimbursement is to be obtained

It is almost same as Art 11 A ii of UCP500

Section b is almost same as Art 11 C ii of UCP500, however, it deleted the original words ‘unless otherwise stated…’ which admitted Issuing Bank to state when, how or

on what conditions, if those were not to occur without undue delay, but this state did not include a term such as ‘operative’ Refer R318 pls

This article renews the Art 11 of UCP500, and then the consecution of 600 is more express and has stronger tone

This article has replaced Art 18 of UCP500

It is a little similar to Art 18 B of UCP500, however, the instances are exiting largely in banking practices Therefore, UCP600 gives the more detail clause to confirm the independent rights of nominated bank

It stipulates what is the meaning that issuing bank selects the nominated bank It is a new clause too

It reaffirms that the nominated bank could ignore the issuing bank’s nomination if it is not confirmation bank

But the items about charges and applicant’s liable which stipulated in Art 18 C & D are deleted by UCP600, I have no idea about it!

It is similar Art 19 of UCP500

In UCP500, Issuing Bank must give an

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by a nominated bank ("claiming bank") claiming on

another party ("reimbursing bank"), the credit must

state if the reimbursement is subject to the ICC rules

for bank-to-bank reimbursements in effect on the

date of issuance of the credit

b If a credit does not state that reimbursement is

subject to the ICC rules for bank- to-bank

reimbursements, the following apply:

i An issuing bank must provide a reimbursing

bank with a reimbursement authorization that

conforms with the availability stated in the credit The

reimbursement authorization should not be subject

to an expiry date

ii A claiming bank shall not be required to supply a

reimbursing bank with a certificate of compliance with

the terms and conditions of the credit

iii An issuing bank will be responsible for any loss of

interest, together with any expenses incurred, if

reimbursement is not provided on first demand by a

reimbursing bank in accordance with the terms and

conditions of the credit

iv A reimbursing bank's charges are for the account

of the issuing bank However, if the charges are for

the account of the beneficiary, it is the responsibility

of an issuing bank to so indicate in the credit and in

the reimbursement authorization If a reimbursing

bank's charges are for the account of the beneficiary,

they shall be deducted from the amount due to a

claiming bank when reimbursement is made If no

reimbursement is made, the reimbursing bank's

charges remain the obligation of the issuing bank

c An issuing bank is not relieved of any of its obligations

to provide reimbursement if reimbursement is not made

by a reimbursing bank on first demand

Article 14 Standard for Examination of Documents

a A nominated bank acting on its nomination, a

confirming bank, if any, and the issuing bank must

examine a presentation to determine, on the basis of the

documents alone, whether or not the documents appear

on their face to constitute a complying presentation

b A nominated bank acting on its nomination, a

confirming bank, if any, and the issuing bank shall each

authorization, but under the frame of UCP600, it is replaced by the italic sentence Even though this section uses the word

‘must’, there are different in next item So Idon’t know the effect of ‘must’ in item a

Opposite to item a, item b states the condition when L/C does not state the reimbursement is subject to ICC rules

‘Must provide…authorization’ is the same as UCP500

It is almost same as Art 19 B of UCP500

It renews D of UCP500, and adds the words who will be responsible for any interest, expense etc

It is similar to Art 19 E of UCP500

It is similar to Art 19 C of UCP500

It includes more details than Art 13 of UCP500

It states that the nominated bank, confirming bank and issuing bank must examine documents independently No essentialchanges happened

There are two changes than before, one is that the checking time is decrease to 5

have a maximum of five banking days following the day

of presentation to determine if a presentation is

complying This period is not curtailed or otherwise

affected by the occurrence on or after the date of

presentation of any expiry date or last day for

presentation

c A presentation including one or more original

transport documents subject to articles 19, 20, 21, 22, 23,

24 or 25 must be made by or on behalf of the beneficiary

not later than 21 calendar days after the date of

shipment as described in these rules, but in any

event not later than the expiry date of the credit

d Data in a document, when read in context with the

credit, the document itself and international standard

banking practice, need not be identical to, but must

not conflict with, data in that document, any other

stipulated document or the credit

e In documents other than the commercial invoice, the

description of the goods, services or performance, if

stated, may be in general terms not conflicting with their

description in the credit

f If a credit requires presentation of a document other

than a transport document, insurance document or

commercial invoice, without stipulating by whom the

document is to be issued or its data content, banks will

accept the document as presented if its content appears

to fulfil the function of the required document and

otherwise complies with sub-article 14 (d)

g A document presented but not required by the

credit will be disregarded and may be returned to the

presenter

h If a credit contains a condition without stipulating the

document to indicate compliance with the condition,

banks will deem such condition as not stated and will

disregard it

i A document may be dated prior to the issuance date of

the credit, but must not be dated later than its date of

presentation

j When the addresses of the beneficiary and the

banking days i/o 7 before, and the other is that italic parts are increased

It differs from Art 43 of UCP500 at all, it strictly restricts the documents to be presented within 21 calendar days and the L/C need not stipulate the period for presentation Of course, the presentation must be finished not later than the expiry date

of L/C

It restates that what are ‘compliance’ and

‘consistency’ Please refer to R251

It is similar to Art 37 C of UCP500 And please note that it is a misunderstanding that documents other than invoice should state the description of the goods Refer to R364 But any way, the documents without description goods must be founded sufficient relationship with other documents, which L/C required

It is similar to Art 21 of UCP500 Please note the italic wording about ‘fulfill the function’,

it maybe bring some bother in future

It is a new clause in UCP600 As to

‘presenter’, please refer to Art 2

It is similar to Art 13 C of UCP500

It is similar to Art 22 of UCP500 And the sentence ‘but … presentation’ is added, in another word, it expresses clearly that the documents must be presented within the presentation period of L/C

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applicant appear in any stipulated document, they need

not be the same as those stated in the credit or in

any other stipulated document, but must be within

the same country as the respective addresses

mentioned in the credit Contact details (telefax,

telephone, email and the like) stated as part of the

beneficiary’s and the applicant’s address will be

disregarded However, when the address and contact

details of the applicant appear as part of the consignee

or notify party details on a transport document

subject to articles 19, 20, 21, 22, 23, 24 or 25, they must

be as stated in the credit

k The shipper or consignor of the goods indicated on

any document need not be the beneficiary of the credit

l A transport document may be issued by any party

other than a carrier, owner, master or charterer

provided that the transport document meets the

requirements of articles 19, 20, 21, 22, 23 or 24 of these

rules

Article 15 Complying Presentation

a When an issuing bank determines that a

presentation is complying, it must honour

b When a confirming bank determines that a

presentation is complying, it must honour or

negotiate and forward the documents to the issuing

bank

c When a nominated bank determines that a

presentation is complying and honours or

negotiates, it must forward the documents to the

confirming bank or issuing bank

Article 16 Discrepant Documents, Waiver and Notice

a When a nominated bank acting on its nomination, a

confirming bank, if any, or the issuing bank determines

that a presentation does not comply, it may refuse to

honour or negotiate

b When an issuing bank determines that a presentation

does not comply, it may in its sole judgement approach

the applicant for a waiver of the discrepancies This does

not, however, extend the period mentioned in sub-article

It is a new clause but these actions exist in practice largely

It is a new article since the concept of

‘Complying Presentation’ is presented at first under the frame of UCP600

It is liability of Issuing Bank, which is the same as UCP500

It is liability of Confirming Bank, which is the same as UCP500

It is the same as the practice under the frame

of UCP500, merely it has become official clause of UCP600

It is similar to Art 14 of UCP500

It is similar to Art 14 B of UCP500 But, refer to the description of Art 2 of UCP600 hereto, when a presentation is not complying presentation, bank should not purchase the documents; if the bank buys the documents,

it could not get the jural rights for negotiating bank

It is the same as Art 14 C of UCP500

c When a nominated bank acting on its nomination, a

confirming bank, if any, or the issuing bank decides to

refuse to honour or negotiate, it must give a single

notice to that effect to the presenter

The notice must state:

i that the bank is refusing to honour or negotiate;

and

ii each discrepancy in respect of which the bank

refuses to honour or negotiate; and

iii.a) that the bank is holding the documents pending

further instructions from the presenter; or

b) that the issuing bank is holding the

documents until it receives a waiver from the

applicant and agrees to accept it, or receives

further instructions from the presenter prior to

agreeing to accept a waiver; or

c) that the bank is returning the documents; or

d) that the bank is acting in accordance with

instructions previously received from the

presenter

d The notice required in sub-article 16 (c) must be given

by telecommunication or, if that is not possible, by other

expeditious means no later than the close of the fifth

banking day following the day of presentation

e A nominated bank acting on its nomination, a

confirming bank, if any, or the issuing bank may, after

providing notice required by sub-article 16 (c) (iii) (a) or

(b), return the documents to the presenter at any

time

f If an issuing bank or a confirming bank fails to act in

accordance with the provisions of this article, it shall be

precluded from claiming that the documents do not

constitute a complying presentation

g When an issuing bank refuses to honour or a

confirming bank refuses to honour or negotiate and has

given notice to that effect in accordance with this article,

it shall then be entitled to claim a refund, with interest, of

any reimbursement made

Article 17 Original Documents and Copies

a At least one original of each document stipulated in

the credit must be presented

It is similar to the first half of Art 14 D of UCP500 And ‘the presenter’ has replaced original sentence Please note ‘single’

Following is about the content which the refuse notice should state And there are some difference comparing with UCP500: i.‘Refusing to honour or negotiate’ replaced

‘refuses the documents

ii.’Each discrepancy’ replaced ‘all discrepancy’, the expression is more intense iii.To compare with Art 14 D ii of UCP500, this item adds two new operating methods One is item b, which exists in banking practice at present; however, it was neither stipulated by UCP500 nor advocated by ICC

in fact And now, it is permitted by ICC though the UCP600 The other is item d, which seems that the presenter has sent to the bank an instruction about how to process the documents with discrepancy in advance, therefore, the bank could process the documents as this previous instruction

It is similar to Art 14 D i of UCP500, merely the ‘fifth banking day’ has replaced the

‘seventh banking day’

It is a new item to compare with UCP500 and banks are endued with more uninfluencedright to decide when they should return the documents since this article doesn’t require banks to state the time of documents return

It is similar to Art 14 E of UCP500

It is similar to Art 14 D iii of UCP500

The Art 14 F of UCP500 about reserve has been deleted by UCP600

It is a new article including part of Art 20 B

& C of UCP500,

It comes from ISBP32

14

b A bank shall treat as an original any document

bearing an apparently original signature, mark,

stamp, or label of the issuer of the document, unless

the document itself indicates that it is not an original

c Unless a document indicates otherwise, a bank will

also accept a document as original if it:

i appears to be written, typed, perforated or stamped

by the document issuer’s hand; or

ii.appears to be on the document issuer’s original

stationery; or

iii.states that it is original, unless the statement

appears not to apply to the document presented

d If a credit requires presentation of copies of

documents, presentation of either originals or copies is

permitted

e If a credit requires presentation of multiple documents

by using terms such as "in duplicate", "in two fold" or "in

two copies", this will be satisfied by the presentation of at

least one original and the remaining number in

copies, except when the document itself indicates

otherwise

Article 18 Commercial Invoice

a A commercial invoice:

i must appear to have been issued by the

beneficiary (except as provided in article 38);

ii must be made out in the name of the applicant

(except as provided in sub-article 38 (g));

iii must be made out in the same currency as the

credit; and

It is similar Art 20 B of UCP500 However, if

a document appears to be original but is in fact not original, according to Art 34 of this rule, banks will not undertake any responsibility For example, if beneficiary present a photocopy of B/L marked ‘original’and signed by carrier, should the bank accept

it as original B/L?

It fully comes from the item 1 General

approach Art 3 of The determination of an

"Original" document in the context of UCP

500 sub-Article 20(b) And item iii responds

the clause b above And this determination is

recommended for further guidance under UCP600, please refer to ISBP(600) paragraph 33

It comes from ISBP 33

It is the same as Art 20 C ii of UCP500 and ISBP33 But, what about L/C requires Signed Invoice in 3 copies?

What is not an "Original"? A document indicates that it is not an original if it

a) appears to be produced on a telefax machine;

b) appears to be a photocopy of another document which has not otherwise been completed by hand marking the photocopy or by photocopying it on what appears to be original stationery; or c) states in the document that it is a true copy of another document or that another document is the sole original

— Quoted from mentioned determination

above

It is similar to Art 37 of UCP500

It is similar to Art 37 A i of UCP500 except that the words ‘on their face’ was deleted

It is the same as Art 37 A ii of UCP500

It is a new clause come from ISBP 64, which included unit price (if any)

iv need not be signed

b A nominated bank acting on its nomination, a

confirming bank, if any, or the issuing bank may accept a

commercial invoice issued for an amount in excess of

the amount permitted by the credit, and its decision will

be binding upon all parties, provided the bank in

question has not honoured or negotiated for an amount

in excess of that permitted by the credit

c The description of the goods, services or performance

in a commercial invoice must correspond with that

appearing in the credit

Article 19 Transport Document Covering at Least

Two Different Modes of Transport

a A transport document covering at least two different

modes of transport (multimodal or combined transport

document), however named, must appear to:

i indicate the name of the carrier and be signed

Any signature by the carrier, master or agent must be

identified as that of the carrier, master or agent

Any signature by an agent must indicate whether the

agent has signed for or on behalf of the carrier, or for

or on behalf of the master

ii indicate that the goods have been dispatched,

taken in charge or shipped on board at the place

stated in the credit, by:

• pre-printed wording, or

• a stamp or notation indicating the date on which

the goods have been dispatched, taken in charge

or shipped on board

The date of issuance of the transport document

will be deemed to be the date of dispatch, taking in

charge or shipped on board and the date of shipment

However, if the transport document indicates, by

stamp or notation, a date of dispatch, taking in

It is the same as Art 37 A iii of UCP500

It is similar to Art 37 B of UCP500

It is similar to Art 37 C of UCP500, merely the clause about other documents’ description

of goods was deleted Please refer to Art 14 e

It is similar to Art 26 A of UCP500

These two items don’t indicate the content about the issue to identify the capacity of the carrier since the requirement has been stipulated in above item Please see the italic sentence ‘indicate…carrier’ in item a i of this rule

It is similar to Art 26 A ii of UCP500 But the italic words replaced the ‘by stamp or otherwise’ The pre-printed wording and notation have covered for otherwise, I think And this mark must not be dated, if the date was added, it should be deemed as the date of shipment This is the same requirement as UCP500