How many articles are there in UCP?
Key Sections and Articles for the UCP 600 it comprises of 39 articles to cover the following: Scope and application of the rules (article 1) Definitions and interpretations (articles 2 and 3) Obligations and liabilities (from article 4 to 13)
Which article of UCP 600 defines letter of credit?
According to the UCP 600 (Article 2) issuing bank means the bank that issues a documentary letter of credit at the request of an applicant (buyer or importer) or on its own behalf.
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 is the latest UCP in export?
The Uniform Customs and Practice for Documentary Credits (UCP) is a set of rules on the issuance and use of letters of credit. The UCP is utilized by bankers and commercial parties in more than 175 countries in trade finance. This latest version, called the UCP 600, formally commenced on 1 July 2007.
What does UCP 600 mean?
Uniform Customs & Practice for Documentary Credits
The UCP 600 (“Uniform Customs & Practice for Documentary Credits”) is the official publication which is issued by the International Chamber of Commerce (ICC).
What is the difference between UCP 500 and 600?
The UCP 600 which contains 39 Articles, compared to its predecessor UCP 500 which contained 49 Articles. It is argued that this structural change along with the simple wording of the provisions will facilitate the interpretation and understanding of the new rules in the UCP 600.
Is UCP 600 legally binding?
UCP400 (1983) Article 1 provides “[t]hese articles apply to all documentary credits, including, to the extent to which they may be applicable, standby letters of credit, and are binding on all parties thereto unless otherwise expressly agreed.
What UCP 500?
UCP 500 means the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. UCP 500 means “The Uniform Customs and Practices for Documentary Credits”, 1993 Revision, International Chamber of Commerce Publication No. 500.
What is the difference between UCP 500 and UCP 600?
Comparison with the structural changes between UCP 600 and UCP 500. In the first place, the UCP 500 comprises 49 Articles whereas the UCP 600 was reduced to 39Articles, which are simpler, clearer, more concise and more organized.
What is eUCP latest version?
The latest version, 2.0, is known as ‘Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentations (“eUCP”)’ and has been in force since 1st July 2019. Future versions will be released as and when required according to technological developments.
What is the meaning of UCP 600?
The Uniform Customs & Practice for Documentary Credits (UCP 600) is a set of rules agreed by the International Chamber of Commerce, which apply to finance institutions which issue Letters of Credit – financial instruments helping companies finance trade.