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
*******
 #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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