Significant Changes in UCPDC-600
Compared
with Publication no. 500
*******
#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
bank.
* 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
bank.
*Presentation must be made to the transferring
bank.
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