Used by letter of credit practitioners worldwide, Uniform Customs and Practice for Documentary Credits (UCP) are the most successful private rules for trade ever developed. Bankers, traders, lawyers, transporters, academics and all who deal with letter of credit transactions worldwide will refer to UCP 600 on a daily basis.
UCP 600 came into effect on 1 July 2007 and contains significant changes including:
- A reduction in the number of articles from 49 to 39
- New articles on ”Definitions” and ”Interpretations” to provide more clarity and precision in the rules;
- The replacement of the phrase ”reasonable time” for acceptance or refusal of documents by a firm period of five banking days;
- New provisions which allow for the discounting of deferred payment credits;
- A definitive description of negotiation as “purchase” of drafts of documents
UCP 600 contains within the text the 12 Articles of the eUCP, ICC’s supplement to the UCP governing presentation of documents in electronic or part-electronic form.