New UCP 600: check its impact on your import/ export routine

The International Chamber of Commerce - ICC - announced in Paris, 4 December 2006, the publication of the 2007 Revision of Uniform Customs and Practice for Documentary Credits or, just UCP 600, (ICC Publication No. 600).

ICC’s new rules on documentary credits, which are used for letter of credit transactions worldwide, were approved by the ICC Commission on Banking Technique and Practice on 25 October 2006.

The implementation date is 1 July 2007 so, if you are involved in export/ import, hurry to understand it (more: http://www.iccwbo.org).

Basically, UCP 600 contains significant changes to the existing rules, including:

• A reduction in the number of articles from 49 to 39;
• New articles on “Definitions” and “Interpretations” providing more clarity and precision in the rules;
• A definitive description of negotiation as “purchase” of drafts of documents;
• The replacement of the phrase “reasonable time” for acceptance or refusal of documents by a maximum period of five banking days.

UCP 600 also includes the 12 Articles of the eUCP, ICC’s supplement to the UCP governing presentation of documents in electronic or part-electronic form.

What’s UCP 600 impact on your import/ export routine? Well, check any letter of Credit and you will see it written into virtually every one.