New training materials

Narayan Prasad Bhandari

LC Operation

and Parties

Involved in LC

Business

Parties Involved in L/C

ApplicantIssuing BankAdvising BankConfirming BankBeneficiaryNegotiating /Collecting BankReimbursing Bank

“These materials are provided for educational and illustrative

purposes only and not as a solicitation by Citigroup for any

particular product or service.

Furthermore, although the information contained herein is

believed to be reliable, the following does not constitute legal

advice, and Citigroup makes no representation or warranty as to

the accuracy or completeness of any information contained

herein or otherwise provided by it.”

2

UCP 600 Understanding & Application

ƒ Review History & Process

ƒ Comparison with UCP 500

ƒ Overview of UCP 600 Articles

3

Review History & Process

¾ The UCP is the work of the ICC, a private international organization founded in 1919.

¾ Remains, to date, the most successful set of private rules for trade ever developed.

¾ UCP 600 – Sixth (6th) revision since it’s inception by theInternational Chamber of Commerce in 1933

¾ Included review - ICC Opinions, Decisions, DOCDEX cases, legal decisions, URR525, ISP98 and eUCP

4


ƒ *Seven Articles that have lead to nearly 60% of ICC Opinions are:

- Article 9 Liability of Issuing and Confirming Banks- Article 13 Standard for Examination of Documents- Article 14 Discrepant Documents and Notice- Article 21 Unspecified Issuers of Contents of Documents- Article 23 Marine/Ocean Bills of Lading- Article 37 Commercial Invoices- Article 48 Transferable Credits

Page 55


ƒ ICC National Committees were requested to vote on issues such as:– “On its face”, “Reasonable time”, “Negotiation” - leave out or retain– Introduction of new articles, splitting of others, “parties” or “banks”,– Discounting of deferred payment undertakings”– Degree of review for “inconsistency” or “non conflicting”

ƒ ICC unanimously approved 2007 Revision on 25th October 2006

ƒ Effective July 1, 2007

Page 56

Irrevocba le

Ined pendne t Documne tary

Comparison with UCP 500

¾ New terminology, concepts & wording introduced

¾ Re-organization of the rules

¾ Substantive & cosmetic changes

¾ Improved clarity, yet created new ambiguity

What’s not changed …

IrrevocableIrrevocable

IndependentIndependent DocDocuumentarymentary

7

8

–––

Article 2Article 3Article 9

Definitions Revision:Interpretations – Article 5 Instructions to

Advising of Credits Issue/Amend

& Amendments – Article 6 (part) Revocable

– Article 12 Nomination – Article 8 Revocation

– Article 15 Complying Unclear Presentation – Article 38 Other Documents

– Article 17 Original Documents – Articles 2,6,9,10,20,21,22,& Copies 30,31,33,35,36,46,47

content merged oramalgamated


UCP 600 (39 Articles)

ƒ New:

UCP 500 (49 Articles)

ƒ Not included in new

– Article 12 Incomplete or

9


No Change from UCP 500 legal status

ƒ Rules apply to LC by incorporation into the LC - not by operation of the law

ƒ Rules may be overridden by express terms in the L/C

ƒ Rules are subject to interpretation by national courts

10

Overview of UCP 600 Articles

General Provisions and Definitions 1 - 5

Liabilities and Responsibilities 6 - 13

Examination of Documents 14 - 17

Documents 18 - 28

Miscellaneous Provisions 29 - 33

Disclaimers 34 - 37

Transferable Credit & Assignment 38 - 39

UCP 600 39 v.v. UCP 500 49

Overview of UCP 600 Article 1

Applicable when the credit expressly indicates that is subject to these“rules” - (SWIFT changes have been made to bring in line).

Use of SWIFT:

40E:40E: ApplicableApplicable RulesRulesUCUCPP LATESLATESTT VERSIONVERSION

Use of telex or letter:

ThisThis creditcredit isis subjectsubject toto thethe UniformUniform CustomsCustoms andand PracticePractice forfor DocumentaryDocumentary Credits,Credits, 20072007 RRevision,evision, ICCICC PublicationPublication No.No. 600.600.

ThisThis creditcredit isis subjectsubject toto UCPUCP 600600

12


“Binding on all parties unless modified or excluded by the terms of the L/C.”

ContraryContrary toto articlearticle 3232 ofof thethe UCP,UCP, tthhisis creditcredit remainsremains validvalid forfor subsequentsubsequent instainstallllmentsments despitedespite anyany shipmentshipment oror drawingdrawing notnot mademade withinwithin thethe periodperiod allowed.allowed.

SubSub-Article-Article 28(c)28(c) doesdoes notnot apply.apply.

DocumentsDocuments mustmust notnot bebe dateddated earlierearlier thanthan thethe datedate ofof thethe issuanceissuance ofof thisthis credit.credit.

Banking day

Honour

Negotiation

Presenter

PresentationComplying presentation

Nominated bank

Complying presentation

Confirmation

Confirming bank

Credit13


NEW Article 2 – Definitions (UCP 500 - Part of Art. 2, 7, 9, & 10)

CertainCertain termsterms areare defined,defined, soso thatthat theythey provideprovide referencesreferences whenwhen suchsuch termsterms areare usedused inin thethe articlesarticles

A Advising bank H

Applicant

Honour

B Banking day

I Issuing bank

Beneficiary

C

N Negotiation

Nominated bank

P Presentation

Presenter

PayPay atat sightsight

IncurIncur deferreddeferred paymentpayment undertakingundertakingPayPay atat maturitymaturity

AcceptAccept billbill ofof exchangeexchangePayPay atat maturitymaturity


„ Honour

ForFor creditcredit availableavailable byby ……

ÖÖ SightSight paymentpayment

ÖÖ DeferredDeferred paymentpayment

ÖÖ AcceptanceAcceptance

„ Negotiation– Purchase by the nominated bank of drafts (drawn on another bank)

and/or documents under a complying presentation,– By advancing or agreeing to advance funds to beneficiary, on or

before the banking day on which reimbursement is due to the nominated bank.


Nominated Bank

„ The bank with which the credit is available, or any bank in the case of a freely available credit

IIsssuingsuingBankBank

IIsssuingsuing AdvisingAdvisingBankBank

AdvisingAdvisingBeneficiaryBeneficiary

NominatedNominatedBankBank



L/C ava i lable wi th any bank

Any bank is a nominated bank

Restricted L/C

Bank named in the L/C


NEW Article 3 – Interpretations (UCP 500 - Art. 47 & part of Art. 2, 20, 46)

NEW ff AA creditcredit isis irrevocableirrevocable eveneven ifif nono indicationindication toto thatthat effect.effect.

NEW ff ForFor determiningdetermining maturitymaturity date,date, thethe wordswords ““from”from” andand “after”“after”excludeexclude thethe datedate mentionedmentioned (ISBP(ISBP –– 45,d)45,d)

3030 daysdays fromfrom shipmentshipment datedate == 3030 daysdays afterafter shipmentshipment datedate

ShipmentShipment date:date: 11 AUGAUG 20072007 MaturityMaturity date:date: 3131 AUGAUG 20072007

16

==

==


„ For determining a period of shipment, the words “from” and “after” have different meanings

– “From” includes the date mentioned– “After” excludes the date mentioned

ShipmentShipment toto bebe effectedeffected fromfrom AugustAugust 10th10th

EarliestEarliest shipmentshipment datedate isis AugustAugust 10th10th

ShipmentShipment toto bebe effectedeffected afterafter AugustAugust 10th10th

EarliestEarliest shipmentshipment datedate isis AugustAugust 11th11th

17

CC


NEW

Article 4 - Credits v. Contracts (UCP 500 - Art. 3)

f Independence Principle - L/C is a separate transaction from the underlying contract

f Banks should discourage any attempt to include contract as integral part of L/C

DiscouragedDiscouraged ???? L/CL/Contractontract No.123No.123

DetailsDetails asas perper ContractContract No.123,No.123, whichwhich isis appendedappended andand formsforms anan integralintegral partpart ofof thethe credit.credit.

18


Article 5 - Documents v. Goods/Services/Performance (UCP 500 - Art. 4)

f Banks deal with documents f In Credit operations alland not with goods, services or performances to which the documents may relate.

parties concerned deal with documents, and not with goods, services and/or other performances to which the documents may relate. (UCP 500 Article 4)

19

Overview of UCP 600 Article 6„ Expiry date

Ö Last day for presentation of documents

„ Place for presentation– Bank with which the L/C is available, or– Any bank, if the L/C is available with any bank, and– Issuing bank

L/C available with any bank L/C available with Bank XYZ

PlacePlace forfor presentationpresentation

1.1. AnyAny bankbank

2.2. IssuingIssuing bankbank

1.1. BankBank XYZXYZ

2.2. IssuingIssuing bankbank

20


Article 9 - Advising of Credits and Amendments (UCP500 - Art.7, 11,b)

NEW

„ By advising an L/C, the advising bank signifies:– Its without any undertaking to honour or negotiate– It has satisfied itself as to the apparent authenticity of the L/C

or amendment– The advice accurately reflects the L/C’s terms and conditions

21


Article 10 – Amendments (UCP500 - Art. 9,d)

„ Confirming bank must inform issuing bank of election not to extend confirmation to an amendment and may advise beneficiary of amendment without it’s confirmation

„ Partial acceptance = Notice of rejection

„ Disregard any provision that the amendment shall be in force unlessrejected by beneficiary within certain time NEW

„ Presentation that complies with the credit and not yet accepted amendment– deemed to be beneficiary’s acceptance of the amendment

22


Article 12 – Nomination (UCP500 - Art. 10,c)

NEW

„ Nomination does not obligate nominated bank to honour

„ By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank

L/CL/C

AvailableAvailable withwith CitibankCitibank N.A.N.A. byby deferreddeferred paymentpayment atat 9090 daysdays afterafter datedate ofof shipmentshipment

CitibankCitibank N.A.N.A. isis authorizedauthorized toto ::

11.. IncIncuurr aa DefDefeerredrred PaymentPaymentUndertakingUndertaking ((“DPU”);“DPU”); andand

22.. “Prepa“Prepayy”” itsits DPUDPU ((iiee earlyearly paymentpayment beforebefore maturity)maturity)

23


Article 14 - Standard for Examination of Documents (UCP 500 - Art. 13, 21, 22)

ff MustMust examineexamine documentsdocuments onon theirtheir faceface toto determinedetermine compliancecompliance

ff OtherOther thanthan thethe commercialcommercial invoice,invoice, descriptiondescription ofof goods,goods, servicesservices oror performance,performance, maymay bebe statedstated inin generalgeneral termsterms

ff DisregardDisregard documentsdocuments notnot requiredrequired byby L/CL/C andand maymay bebe returnedreturned

ff DisregardDisregard nononn-documentary-documentary conditioncondition

ff DocumentsDocuments maymay bebe dateddated priorprior toto issuanceissuance datedate ofof LC,LC, butbut notnot laterlater thanthan datedate ofof presentationpresentation

24


„ UCP 500: Reasonable time, not to exceed SEVEN banking days following the day of receipt of documents

„ UCP 600: Max. of FIVE banking days following day of presentation.Not curtailed or affected by other events.

MM TuTu WW ThTh FF SaSa SS MM TuTu WW

UCUCPP 600600 00 11 22 33 44 XX XX 55

UCUCPP 500500 00 11 22 33 44 XX XX 55 66 77

WhatWhat isis reasonablereasonable ??

25


Presentation Period

„ Presentation including an original transport document must be made not later than 21 calendar days after date of shipment

„ Transport document - Subject to Articles 19-25

Data Not Conflicting

„ Data in a document must not conflict with data in that document, other stipulated documents or the L/C

26

Overview of UCP 600 Article 14Unspecified Issuer or Content

„ Other than invoice, transport document or insurance document, banks will accept the document if (1) its content appears to fulfill the function, and (2) it complies with 14(d)

Example: L/C calls for Inspection Certificate

InspectionInspectionCertificateCertificate

Goods have been inspected and are certified to be inorder.Signed

InspectionInspectionCertificateCertificate

Goods are certified to be of Singapore origin.

Signed

Goods have been inspected and are certified to be in order.

Signed

Dated 11 AAUGUG 2007200799 Dated

11 AAUGUG 20020077

88

Dated 11 AAUGUG 20020077

99

27


Addresses of Beneficiary & Applicant NEW

„ Need not be the same between stipulated documents & the credit; but

„ Must be within the same country as in the credit

„ Disregard contact details of beneficiary and applicant (fax, phone, email)stated in the credit (ISBP 61)

„ However, if they form part of consignee and notify party details in transport documen t , applicant’s contact details must be as stated in the credit

28


Shipper, Consignor, Transport Document Issuer

„ Shipper or consignor of goods indicated on any documents need not be the L/C beneficiary, but must be consistent among all documents

„ Transport document may be issued by party other thanNEW carrier/ owner/ master/ chartere r , provided it meets the

requirements of articles 19, 20, 21, 22, 23 or 24

29

30


Article 16 – Discrepant Documents, Waiver and Notice (UCP 500 – Art. 14,b,c,d,e)

„ Nominated/Confirming/Issuing bank may refuse to honour or negotiate discrepant documents

„ Issuing bank, in its sole judgment approach applicant for waiver

„ Notice of refusal must be given no later than close of the fifth banking d ay following day of presentation

„ After providing notice of refusalNEW – The bank may return documents to presenter at any time

The bank is holding documents pending presenter’s further instructions

The issuing bank is holding documents until it receives waiver from applicant and agrees to accept it, or receives further instructions from presenter prior to agreeing to accept the waiver

The bank is returning the documents

The bank is acting in accordance with instructions previously received from the presenter


„ Singl e Notice of Refusal must state:– the bank is refusing to honour or negotiate,– each discrepancy in respect of the refusal, and– one of the following:

NEWNEW

NEWNEW


Article 17 – Original Documents and Copies (UCP 500 - Art. 20,c,ii)

ff AtAt leastleast oneone originaloriginal mustmust bebe presentedpresented

ff OriginalOriginal DocumentDocument == apparentapparent originaloriginal signature,signature, mark,mark, stampstamp oror labellabel ofof issuerissuer ofof thethe dodoccumentument

ff AlsoAlso anan OriginalOriginal == written,written, typed,typed, perforatedperforated oror stampedstamped byby thethe documentdocument issuer’sissuer’s hand;hand; ororonon originaloriginal stationery;stationery; oror statesstates thatthat itit isis originaloriginal

ff L/CL/C requiresrequires copiescopies ofof documents,documents, eithereither originalsoriginals oror copiescopies isis acceptableacceptable

ff DocumentsDocuments “in“in duplicatduplicatee”,”, “in“in twotwo fold”fold” oror “in“in twotwo copiescopies””,, presentationpresentation ofof atat leastleast oneone originaloriginal andand remainingremaining numbernumber iinn copiescopies isis acceptable.acceptable.

33


Article 18 – Commercial Invoice (UCP 500 - Art. 37)

„ Invoice amount in excess of L/C – May be accepted by the nominated bank, but must not be honoured or negotiated in excess of L/C amount

„ Issued by beneficiary, made out in the name of applicant, and need not be signed (except as provided in article 38 – Transferable L/C)

„ Description of goods, services or performance must correspond with L/C description

„ Must be in the same currency as L/C NEW

Overview of UCP 600 – Transport Articles

UCP 600 UCP 50019 Transport Document Covering At

Least Two Different Modes of Transport

26 Multimodal Transport Document

20 Bill of Lading 23 Marine/Ocean Bill of Lading

21 Non-Negotiable Sea Waybill 24 Non-Negotiable Sea Waybill

22 Charter Party Bill of Lading 25 Charter Party Bill of Lading

23 Air Transport Document 27 Air Transport Document

24 Road, Rail or Inland WaterwayTransport Documents

28 Road, Rail or Inland WaterwayTransport Documents

25 Courier Receipt, Post Receipt orCertificate of Posting

29 Courier and Post Receipts

Overview of UCP 600 – Transport Articles

„ New SWIFT 700 fields for transport details:

44A Place of Taking in Charge/ Dispatch from …/Place of Receipt

44E Port of Loading/ Airport of Departure

44F Port of Discharge/ Airport of Destination

44B Place of Final Destination/ For Transportation to …/Place of Delivery


Article 19 – Transport Documents Covering at Least TwoDifferent Modes of Transport (UCP500 - Art. 26)

„ Must appear to indicate name of carrier

„ Signed by carrier, master or named agent

„ If signed by agent, need to specify for whom - carrier or master - it is signed

ABABCC ForForwwardersarders

AAss AgeAgenntt

ForFor MasMastterer

606000

99505000

88

ABABCC ForForwwardersarders

AAss AgeAgenntt

ForFor MasMastter,er,

606000 99505000 99

TTaakkaashishi YanagawaYanagawa

Overview of UCP 600 Article 20 & 21

Article 20 – Bill of Lading (UCP500 – Art. 23)

Article 21 – Non-Negotiable Sea Waybill (UCP500 – Art. 24)


„ Signed by carrier, master or named agent– If signed by master, name of master is not necessary

MasterMaster 600600 99500500

99„ If signed by agent, need to specify for whom,

carrier or master - it is signed

ABCABC ForwardersForwarders600600 99

ABCABC ForwardersForwarders600600

99AsAs AgentAgent 500500 88 AsAs AgentAgent

500500 99ForFor MasterMaster FoForr Master,Master, JohJohnn DDooee

37

38


Charter Party Bill of Lading (UCP500 – Art. 25)

„ B/L containing indication that it is subject to a charter party

„ Signed by master, owner, chartere r or named agent– If signed by master, or owner, or charterer, their

names are not necessary

Master,Master, OwnerOwner oror ChartererCharterer 600600 99

„ If signed by agent, need to specify for whom –master, owner or charterer - it is signed

ABCABC ForwardersForwarders 600600

AsAs AgentAgent

FoForr Owner,Owner, JohnJohn DDooee

AA BCBC ForwardersForwarders

600600

AsAs AgentAgent

FoForr CChharterartereer,r, JohnJohn DoeDoe

ABCABC ForwardersForwarders

600600

AsAs AgentAgent

FoForr MasterMaster

39



„ Agent signing for owner or charterer must indicate name of owner or charterer

99 99

99

40



NEW

„ Port of discharge may be shown as a range of ports, or geographical area, as stated in L/C (ISBP 106)

– e.g. L/C calls for shipment to Asian ports

r on


Article 23 – Air Transport Document (UCP500 – Art. 27)

NEW


„ Signed by carrier or named agent

„ If signed by agent, need to indicate that agent has signed for o behalf of carrier

„ Must indicate date of issuance, which will be deemed to be the date of shipment, unless……….

„ Specific notation of actual date of shipment, even not called for in the credit, will be deemed to be the date of shipment

41


Road, Rail or Inland WaterwayTransport Documents(UCP500 – Art. 28)

f For rail transport document:

NEW Ö If it does not identify the carrier, any signature or stamp of railway company is accepted as being signed by thecarrier (ISBP – 172)

Ö Transport document marked “duplicate” is accepted as an original

Ö Transport document will be accepted as original whether marked as an original or not (also applicable to inland waterway transport)

NEW

f Road transport document marked for consignor or shipper or bear no marking for whom the document has been prepared – is the original

42


Article 28 – Insurance Document and Coverage (UCP500 – Art. 34-36)

„ Insurance document – Insurance policy, insurance certificate or declaration under open cover

„ Issued and signed by insurance company, underwriter or their agents or their proxies

„ Signature by agent or proxy indicated as being for or on behalf of insurance company or underwriter

ABCABC InsuranceInsurance Co.Co. Ltd.Ltd.

AgentAgent forforABCABC InsuranceInsurance Co.Co. Ltd.Ltd.

ByBy proxyproxy forforABCABC InsuranceInsurance Co.Co. Ltd.Ltd.

43

Effective Date

1 AUG 2007

InI ssuurraacnccc PPloiliccy

Issued on 8 AUG 20000

c y

0

BiBill ooff LLadadiinngg

Shipped OOOO Board

1 AUG 2007


ll

O

0



„ All originals must be presented, if the document indicates that more than one original has been issued

„ Cover Note not acceptable

„ Insurance policy is acceptable in lieu of insurance certificate or declaration under open cover

„ Issued no later than shipment date, or it appears from the document that cover is effective from a date no later than shipment date

InsuranceInsurance PolicyPolicy

Effective Date

1 AUG 2007


BillBill ofof LadingLading

Shipped On Board

1 AUG 2007


44



„ Min. 110% of CIF or CIP value, if L/C does not indicate insurance coverage required

„ If CIF or CIP value cannot be determined from documents – take the greater of the following:

– Amount for which honour or negotiation is requested; or– Gross invoice value of the goods

NEW „ Risks covered at least :

PlacePlace ofof takingtaking inin chargecharge oror shipmentshipment

PlacePlace ofof dischargedischarge oror finalfinaldestinationdestination

… as stated in the L/C

45

46



„ L/C should state type of insurance required and additional risks to be covered

„ If L/C uses imprecise terms such as “usual risks” or “customary risks”, bank will accept insurance document without regard to any risks not covered

„ If L/C requires insurance against “all risks”, bank will accept insurance document containing any “all risks” notation or clause, without regard to any risks stated to be excluded

NEW

„ Insurance document may :– Contain reference to any exclusion clause– Indicate that cover is subject to franchise or excess

(deductible)

A

B

C

AU

G

1

AUG 7

AUG

9

AA BB CC

47

Overview of UCP 600 Article 31Article 31 – Partial Drawings or Shipments (UCP 500 – Art. 40)

„ Partial drawings or shipments are allowed

„ Presentation of multiple sets of transport docs evidencing shipment on the same means of conveyance (e.g. vessel, aircraft) from different ports/places on different dates and for the same journey to the samedestination – not partial shipment

PortPort AA

PortPort BB

B/LB/L ““A”A” AUGAUG 11

B/LB/L ““BB”” AUGAUG 77

•• SSaammee vessevessell aanndd vvooyageyage

•• SameSame destidestinnationation

PortPort DD

PortPort CC

B/LB/L ““CC”” AUGAUG

99

== L/CL/C quantityquantity

„ Take latest of the shipment dates as date of shipment (Aug 9 in the above example) (ISBP 89)

A B C

AUG 1

AUG 1

AUG 1 AA BB CC


NEW „ Presentation of multiple sets of transport docs evidencing shipment on more than one means of conveyance within the same mode of transport (e.g. shipment by truck) will be regarded as partial shipment, even if shipped on the same day for the same destination (ISBP 89)

PartialPartial ShipmentShipment

TruckTruck AA AUGAUG 11

TruckTruck BB AUGAUG 11DeDessttinainattionion

DD

TruckTruck CC AUGAUG 11 == L/CL/C quantityquantity


ArticleArticle 3737 –– DisclaimerDisclaimer forfor ActsActs ofof anan InstructedInstructed PartyParty((UUCPCP 500500 –– Art.Art. 18)18)

f Bank instructing another bank to perform services is liable for that bank’s charges

f Issuing bank is liable for charges that cannot be collected or deducted from the proceeds

ApplicantiF rss

Beneficiary

SecondBeneficiary


Article 38 – Transferable Credits (UCP 500 - Art. 48)

NEW „ Transferable credit – An L/C may be made available by the transferring bank to a second beneficiary

ApplicantApplicantFirFirsss

ttBeneficiaryBeneficiary

SecondSecondBeneficiaryBeneficiary

11 22 33 44

IssuingIssuingBankBank

TransferringTransferringBankBank

((MMayay bebe thetheIssIssuuinging Bank)Bank)

1.1. L/CL/C applicationapplication

2.2. TransferableTransferable creditcredit

3.3. RequestRequest forfor transfertransfer

4.4. TransferredTransferred creditcredit ––(Credit(Credit hashas beenbeen mmaadede availableavailable ttoo aa seconsecondd beneficiary)beneficiary)

50



„ Transferred credit must accurately reflect the terms and conditions of the credit, including confirmation …

„ Second beneficiary’s documents may be sent to issuing bank if first beneficiary fails, on first demand, to:

– Present its invoice (and draft, if any), or– Rectify discrepancies in its invoice (where such discrepancies did not

NEW exist in second bene’s invoice)

51

transferring bank



NEW „ 38 (k): Second beneficiary’s documents must be presented to

BB AA

CC

Second beneficiary’s documentsFirst beneficiary’s draft & invoiceDocuments after substitution

52


„ Bank not obligated to effect transfer

„ All charges relating to the transfer are for the account of first beneficiary

„ If L/C allows partial drawings or shipments, it can be transferred in part to more than one second beneficiary

„ Transferred L/C cannot be transferred to any subsequent beneficiary

„ Must determine the handling of subsequent amendments

„ Rejection of an amendment by one or more second beneficiary does not invalidate the acceptance by any other second beneficiary

„ Allowable changes:- credit amount - unit price - expiry date - period for presentation- latest shipment date - percentage of insurance coverageFirst beneficiary’s name may be substituted for that of the applicant

„ Honour or negotiation of transferred L/C may be in the second beneficiary’s country

53


Article 7 – Issuing Bank Undertaking (UCP500 – part of Art. 9,a)

Article 8 – Confirming Bank Undertaking (UCP500 - 9,c and part of Art.9,b)

Article11 – Teletransmitted and Pre-Advised Credits andAmendments (UCP 500 - Art. 11,a,c)

Article 13 – Bank to Bank Reimbursement Agreements (UCP500 - Art.19)

Article 15 – Complying Presentation NEW

Article 25 – Courier Receipt, Post Receipt or Certificate of Posting(UCP 500 – Article 29)

Article 26 – “On Deck”, “Shipper’s Load and Count”, “Said by Shipper to Contain” and Charges Additional to Freight (UCP 500 – Art. 31,i,ii and Art. 33,d)

54


Article 27 – Clean Transport Document (UCP 500 – Art. 32)

Article 29 – Extension of Expiry Date or Last Day for Presentation(UCP 500 – Art. 44)

Article 30 – Tolerance in Credit Amount, Quantity and Unit Prices(UCP500 - Art. 39)

Article 32 – Installment Drawings or Shipments (UCP 500 - Art. 41)

Article 33 – Hours of Presentation (UCP 500 - Art. 45)

Article 34 – Disclaimer on Effectiveness of Documents(UCP 500 - Art. 15)

Article 35 – Disclaimer on Transmission and Translation(UCP 500 - Art. 16)

Article 36 – Force Majeure (UCP 500 - Art. 17)

55

Any Questions?

Our Technical Trade Specialists are happy to answer your technical LC questions. Please mention that you attended our Introduction to UCP 600 for Importers Webinar!

Barbara Fernandez in Tampa, FL

Phone: 1-813-604-7088

E-Mail: [email protected]

Victor Pena in Tampa, FL

Phone: 1-813-604-7042

E-Mail: victor.a. p ena @ citi g roup.c o m

Our Trade Bankers are available to provide additional information about our trade services, our trade finance capabilities, and our global network. Please contact:

Phyllis Kai-Kee in New York, USA

Phone: 1-213-239-1749

E-Mail: phyllis.ka [email protected]

56

mailto:[email protected]



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