Significant Changes in UCPDC-600

Significant Changes in UCPDC-600

Significant Changes in UCPDC-600

Compared with Publication no. 500

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 #Article     :1   :It has been expressly indicated that UCP600 contains rules.

 #                :2  :All the parties including Banks and Clients have been categorically defined. Also different terminologies have been clarified.

 #                :3:All the interpretations of UCP 500 have been compiled in a single Article

of UCP 600.

Besides this article indicates credit is always “irrevocable

 #                :4   :No change except inclusion of a sub article of UCP 500 i.e., credit instrument should not include copies of contract/proforma as integral part.

#                :5   :No change with the relevant circular of publication No. 500

#                :6   :This article represents combination of articles………..of UCP 500.

 #               :7:This article represents liability and responsibility of LC issuing bank. It

also emphasizes on liability in the event nominated bank fails or refuses to perform their responsibility in any situation.

#                :8   : Negotiation, without recourse.

#                :9   :Advice should accurately reflect terms and conditions of the Credit or   amendment received.

#          :10: If the beneficiary fails to give such notification a presentation that complies with the credit and to not yet accepted amendment will be deemed to be notification by the beneficiary of such amendment.

#          :11       :A pre-advice constitutes an irrevocable undertaking to issue details of LC.

#          :12       : Nomination of a bank authorizes to purchase/negotiate documents..

#          :13       : The credit must state if the reimbursement is subject to ICC rules for bank to bank reimbursement.

#          :14       : Standard of Examination of Documents : complying presentation 5 (five)

banking days following the day of presentation.

#          :15       : Complying presentation – issuing bank/confirming bank must honour

complying presentation. Nominated bank if negotiates docs it must forward the same to the confirming bank/issuing bank

#          :16       : Discrepant Documents :

Beneficiary – nominated bank.

#          :17       : Original Documents.

#          :18       : Commercial invoice.

#          :19       : Requirement of mentioning capacity of the Agent is omitted. Carrier’s

right to effect transshipment is to be disregarded.

#          :20       : Same

#           :21      : Non-negotiable Sea way bill (Ref :Publication of ICC titled “UCPDC400-500 compared” of page – 72)

  • It is widely used in European, Scandinavian, North America and certain Far Eastern trade areas.
  • To avoid delay in handling the goods once they arrived at the port of discharge.
  • It is not considered as a traditional negotiable bill of lading or a documents of title.

#          :22       : Charter Party

  • Master owner & Charterer
  • Name of the carrier is not necessary.

* Charterer may issue and sign Bill of Lading

** “If a credit calls for ————-“ omitted.

#          :23       : The information appearing in the box on the air transport document

                         (marked “for carrier uses only or similar expression) relative to the flight

number and date will not be considered a specific notations of such

date of dispatch” omitted.

#          :24       : Language restructured keeping most of the text same as was in UCP 500

Other changes : Additions

“ if rail transport document does not identify the carrier, any signature or standing of the railway company will be accepted ———- signed by the carrier.

  • A road transport doc must appear to be the original.
  • A rail transport doc marked duplicate will be accepted as sign.
  • A rail or water way transport doc will be accepted as —- whether marked as original or not”

#          :25       : * If a credit calls for ——— — omitted

* In all other respects meets the stipulation of the credit ———- omitted.                          * Word stipulates substituted by “states”

* Language of other texts are structured.

#          :26       : Unless otherwise stipulated ———— omitted.

#          :35       : Disclaim on Transmission and Translation.

Even Documents are lost in transit, Issuing bank / Confirming bank

bound to reimburse.

 

#          :38       : Transfer:

* Nominated or specially authorized incase credit is available with any

* Presentation must be made to the transferring bank.

*It has not been made clear whether transferring will hold the responsibility of the payment against transferred LC.

 

Comment of Gary Collyer– Technical Advisor to the ICC Commission:

The eUCP allows for presentation electronically or for a mixture of paper documents and electronic presentation”.

Scope of eUCP:

Presentation of paper documents and electronic records.

 

eUCP & UCP:

Definition:

Appear on their face   : Examination : Data content of an electronic record

Document                   :Electronic record.

Sign                             : Electronic signature.

Electronic signature    : Authentication of electronic record.

 

Presentation:                          # Electronic record may be presented separately and need not be presented at a time.

# Notice of completeness to be given

 

Examination:                         # Hyperlink

# Forwarding of records by the nominated bank signifies that it has satisfied itself as to the apparent authenticity of the electronic records

# Inability of the issuing bank/ confirming bank to examine records shall not be basis of refusal

 

Transport:                              :Issuance date.

Hyperlink

Significant Changes in UCPDC-600

Compared with Publication no. 500

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 #Article:1       :The word “Rule” has been incorporated.: Application.

 #           :2        :Definitions: Different terminologies/ parties involved in DC have

been defined

 #          :3:        :Interpretations: A good number of articles in publication no.500 have

                      been set under this article.

Besides this article indicates credit is always “irrevocable

 #          :4         :No significant changes with relevant article of 500- Credit vs Contract.

Enclosing of Proforma invoice/Indent/Contract with the credit instrument has been discouraged, which also prevails in 500.

#          :5         :No change. Document vs Goods/services/performance.

 #          :6         :It relates to types of credit of article 10 of UCP-500.

Requirement of expiry date and place of presentation in the credit has been set.- Availability.

 #          :7         :Issuing bank undertaking:

Text of the article is almost same with respect to UCP-500.

Undertaking to the beneficiary is independent of undertaking the

reimbursing bank.

#          :8         :Almost same. – Confirming bank undertaking.

Exception: Negotiation, without recourse.

In UCPDC 500 liabilities & responsibilities of issuing & confirming bank were expressed jointly.

 #          :9         : Advising of Credit & Amendment:

Advice should accurately reflect terms and conditions of the Credit.

#          :10       : Confusion arises about the meaning of the sentence “If the beneficiary

fails ………………………. of such amendment.”


Article

#          :11       : No change. (Teletransmission)

#          :12       : Nomination: Nomination does not impose obligation.

#          :13       : BTB reimbursement.

#          :14       : Standard for Examination of Documents : 5 (five) banking days.

#          :15       : Presentation is complying – it must honour.

#          :16       : Discrepant Documents :

Beneficiary – nominated bank.

#          :17       : Original Documents.

#          :18       : Commercial invoice.

#          :19-20  : Transport Documents.

#          :35       : Disclaim on Transmission and Translation.

Even Documents are lost in transit, Issuing bank / Confirming bank

bound to reimburse.

#          :38       : Transfer:

*Nominated or specially authorized incase credit is available with any

*Presentation must be made to the transferring bank.

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