What is the meaning of UCP 600?

What is the meaning of UCP 600?

Uniform Customs and Practice for Documentary Credits
The Uniform Customs and Practice for Documentary Credits (“UCP”) 600 are international rules published by the International Chamber of Commerce (ICC) with the aim of standardising international banking practice in relation to LCs.

Does UCP 600 have automatic application to trade parties?

Equally, for the UCP 600 to apply to a given letter of credit, the parties to a sales contract must agree this in advance in their contract. The rules do not apply automatically.

What UCP 500?

UCP 500 means the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. UCP 500 means “The Uniform Customs and Practices for Documentary Credits”, 1993 Revision, International Chamber of Commerce Publication No. 500.

What is the bank’s responsibility under Article 5 of the UCP 600 rules?

Second, UCP 600 Article 5 (Documents v. Goods, Services or Performance) states: “Banks deal with documents and not with goods, services or performance to which the documents may relate.” This article relates to the goods or services covered by the documents presented.

What are the UCP 600 rules?

The UCP 600 are the most successful rules ever developed in relation to trade and most Letters of Credit are subject to them. At the recent ICC UK Winter Trade Finance Conference, there was a special programme which addressed the UCP 600.

What is the UCP rule governing documentary credits?

The Uniform Customs and Practice for Documentary Credits (“UCP”) is the rule governing the Documentary credits. It was established by the international chamber of commerce (ICC) to mitigate the doubts caused by individual countries promoting their own national rules on documentary credit practice.

When was UCP 600 first published?

First published in December 2006 and implemented on 1 July 2007. UCP 600 is the fruit of more than three years of work by the International Chamber of Commerce’s (ICC) Commission on Banking Technique and Practice.

What are the requirements of uniform customs and practices 600?

Uniform Customs and Practices 600 f. i.The insurance document must indicate the amount of insurance coverage and be in the same currency as the credit. ii. A requirement in the credit for insurance coverage to be for a percentage of the value of the goods, of the invoice value or similar is deemed to be the minimum amount of coverage required.