ARTICLES OF UCPDC 600
Article-1 : UCPDC-boo apply to any LC when its text expressly indicates that it is subject to these rules. The rules are binding on all
parties thereto unless expressly modified or excluded by the credit.
Article-2: Definitions : Advising bank, Applicant, Banking day, Beneficiary, Complying presentation, Confirmation, Confirming
bank, Credit, Honour, Issuing bank, Negotiation, Nominated, Presentation, Presenter.
Article-3 Interpretations:
A credit is irrevocable even if there is no indication to that effect.
Branches of a bank in different countries are separate banks.
The expression "on or about" will be interpreted as an event to occur during a period of 5 calendar days before until 5
calendar days after the specified date, both start and end dates included.
The terms "first half" and "second hal' of a month shall be construed respectively as the 1st to the 15th and the 16th to the
last day of the month, all dates inclusive.
The terms "beginning", "middle" and "end" of a month shall be construed respectively as the 1st to the loth, the nth to the
loth and the 21st to the last day of the month, all dates inclusive.
Article-4 Credits v. Contracts: A credit is a separate transaction from the sale. Banks are not concerned with or bound by such
contract, even if any reference is included in the LC.
ArticIe-5 Documents v. Goods: Banks deal with documents and not with goods, services or performance to which documents
relate.
Article-6 Availability, Expiry Date and Place for Presentation: A credit must state an expiry date for presentation. An expiry date
for negotiation is deemed expiry date for presentation which must be made on or before the expiry date.
Article-7 Issuing Bank Undertaking: If stipulated documents are presented to the nominated bank or to the issuing bank, the
issuing bank must honour.
Article-8 Confirming Bank Undertaking: The confirming bank must honour the credit. It must reimburse another nominated bank
that has negotiated a complying presentation and forwarded the documents to the confirming bank.
Article-9 Advising of Credits and Amendments: A credit and any amendment may be advised to a beneficiary through an
advising bank. An advising bank advises the credit and any amendment without any undertaking to negotiate. By advising the
credit, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit and the advice accurately
reflects the terms and conditions of the credit or amendment received.
Article-io Amendment: A credit can neither be amended nor cancelled without the agreement of the issuing bank, the
confirming bank and the beneficiary. Partial acceptance is not allowed and will be deemed to be notification of rejection of the
amendment.
Article-it Tele transmitted and Pre-Advised LC and Amendments: An authenticated teletransmission will be deemed to be the
operative credit or amendment, and any subsequent mail confirmation shall be disregarded. If it states "full details to follow" the
tele-transmission will not be operative credit or amendment.
Article-12 Nomination: 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.
Article-13 Bank-to-Bank Reimbursement Arrangements.: If a credit states that reimbursement is to be obtained by a nominated
bank, the credit must state if the reimbursement is subject to the ICC rules in effect on the date of issuance of the credit.
Article-14 Standard for Examination of Documents:
(a) A nominated bank and issuing bank shall each have a maximum of 5 banking days following the day of presentation to
determine if the documents are in order.
(b) A presentation must bemade by or on behalf of the beneficiary not later than 21 calendar days after the date of shipment as
described in these rules, but in any event not later than the expiry date of
the credit.
(c) A document may be dated prior to the issuance date of the credit, but must not be dated later than its date of presentation.
Article-15 Complying Presentation: a. When an issuing bank or confirming bank determines that a presentation is complying, it
must honour or negotiate the documents.
Article-16 Discrepant Documents,Waiver and Notice:
a. When a nominated bank determines that a presentation does not comply, it may refuse to honour or negotiate.
b. When an issuing bank determines that a presentation does not comply, it may approach the applicant for a waiver of
discrepancies.
Article-17 Original Documents and Copies: a. At least one original of each document stipulated in the credit must be presented.
Article-18 Commercial Invoice: (a) A commercial invoice, must appear to have been issued by the beneficiary; made out in the
name of the applicant, made out in the same currency as the credit; and need not be signed. (b) The description of the goods,
service or performance in a commercial invoice must correspond with that appearing in the credit.
Article-19 Transport Document Covering at Least Two Different Modes of Transport: The date of issuance of the transport
document will be deemed to be the date of dispatch, taking in charge or shipped on board, and the date of shipment
A transport document indicating that trans-shipment will or may take place is acceptable, even if the credit prohibits transshipment.
Article-2o Bill of Lading: a. A bill of lading, must indicate that the goods have been shipped on board a named vessel at the port
of loading stated in the credit. The date of issuance of the bill of lading will be deemed to be the date of shipment.
Article-21 Non-Negotiable Sea Waybill: It must indicate that the goods have been shipped on board a named vessel at the port
of loading stated in the credit.
Article-22 Charter Party Bill of Lading: It must indicate that the goods have been shipped on board a named vessel at the port of
loading stated in the credit. The date of issuance of the charter party bill of lading will be deemed to be the date of shipment.
Ai-tide-23 Air Transport Document: It must appear to indicate that the goods have been accepted for carriage and indicate
the date of issuance. This date will be deemed to be the date of shipment.
Artiele-24 Road, Rail or Inland Waterway Transport Documents: These must indicate the date of shipment or the date the goods
have been received for shipment, dispatch or carriage at the place stated in the credit. The date of issuance of the transport
document will be deemed to be the date of shipment.
Article-25 Courier Receipt, Post Receipt of Certificate of Posting: A courier receipt evidencing receipt of goods for transport,
must indicate a date of pick-up or of receipt or wording to this effect. This date will be deemed to be the date of shipment.
Article-26 "On Deck", "Shipper's Load and Count", "Said by Shipper to Contain" and Charges Additional to Freight: A transport
document must not indicate that the goods are or will be loaded on deck. A clause on a transport document stating that the
goods may be loaded on deck is acceptable.
Article-27 Clean Transport Document: A clean transport document is one bearing no clause or notation expressly declaring a
defective condition of the goods or their packaging.
Article-28 Insurance Document and Coverage: An insurance document can be an insurance policy, an insurance certificate or a
declaration under an open cover. Cover notes will not be accepted
(b) The date of the insurance document must be no later than the date of shipment, unless it appears from the insurance
document that the cover is effective from a date not later than the date of shipment
(c) The insurance document must be in the same currency as the credit (d) If there is no indication in the LC of the insurance
coverage required, the amount of insurance coverage must be at least no% of the CIF or CIP value of the goods.
Article-29 Extension of Expiry Date or Last Day for Presentation: If the expiry date of a credit or the last day for presentation
falls on a day when the bank to which presentation is to be made is closed, the expiry date or the last day for presentation, as the
case may be, will be extended to the
first following banking day. In such case, a nominated bank must provide a statement on its covering schedule that the
presentation was made within the time limits extended in accordance with article 29. The latest date for shipment will not be
extended as a result of article 29.
Article-30 Tolerance in Credit Amount, Quantity and Unit Prices:
(a) The words "about" or "apprx" used in connection with the amount of LC or the quantity or the unit price stated in the LC are
to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to
which they refer.
(b) A maximum tolerance of 5% more or 5% less than the quantity of the goods is allowed, where the credit does not state
quantity in terms of a stipulated no. of packing units or individual items and the total amount of the drawings does not exceed
the amount of LC.
(c) Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed,
provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not
reduced or that sub-article 30 (b) is not applicable.
Article-31 Partial Drawings or Shipments: Partial drawings or shipments are allowed.
Article-32 Instalment Drawings or Shipments: If a drawing or shipment by instalments within given periods is stipulated in the
credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available
for that and any subsequent instalment.
Article-33 Presentation Time: A bank has no obligation to accept a presentation outside of its banking hours.
Article-34 Disclaimer on Effectiveness of Documents: A bank assumes no liability or responsibility for the form, sufficiency,
accuracy, genuineness, falsification or legal effect of any document, or for the general or particular conditions stipulated in a
document or superimposed thereon; nor does it assume any liability or responsibility for the description, quantity, weight, quality,
condition, packing, delivery, value or existence of the goods, services or other performance represented by any document, or for
the goods faith or acts or omissions, solvency, performance or standing of the consignor, the carrier, the forwarder, the consignee
or the insurer of the goods or any other person.
Article-35 Disclaimer on Transmission and Translation: A bank assumes no liability or responsibility for the consequences arising
out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages or delivery of letters or
documents, when such messages, letters or documents are transmitted or sent according to the requirements stated in the
credit, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in
the credit.
Article-36 Force Majeure: A bank assumes no responsibility for consequences arising out of the interruption of its business by
Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or causes beyond its
control.
Article-37 Disclaimer for Acts of an Instructed Party: A bank utilizing the services of another bank for the purpose of giving effect
to the instructions of the applicant does so for the account and at the risk of the applicant.
Article 38- Transferable Credits: A transferable credit may be made available in whole or in part to 2nd beneficiary at the request
of the first beneficiary. It cannot be transferred at the request of a second beneficiary. The first beneficiary can substitute its own
invoice and draft for those of a second beneficiary for an amount not in excess of LC.
Article-39 Assignment of Proceeds: The beneficiary can assign any proceeds to which it may be or may become entitled under
the credit.
eUCP : Supplement to UCPDC for Electronic Presentation (Version IA)
eUCP has been created to take care of the demand of the market for the presentation of electronic documents or for a mixture of
paper documents and electronic presentation. It provides definitions permitting UCP 60o terminology and providing rules to
allow both sets of rules to work together.
Article el of eUCP narrates the scope of eUCP. eUCP also deals with relationship of eUCP and UCP 600 (e2), definitions (e3),
format (e4), presentation (e5), examination (e6), notice of refusal (e7), originals and copies (e8), date of issuance (e9), transport
(elo), corruption of electronic record after presentation (en) and additional disclaimer of liability for presentation of electronic
records under eUCP (e12).
INTERPRETATIONS USED IN UCPDC-600
A credit is irrevocable even if there is no indication to that effect.
On or about — Such expression will be interpreted as a stipulation that an event is to occur during a period of 5 calendar days
before until 5 calendar days after the specified date, both start and end dates included.
The words `to', 'until', 'from' and 'between' when used to determine a period of shipment include the date mentioned and
the words 'before' and 'after' exclude the date mentioned.
The words 'from' and 'after' when used to determine a maturity date exclude the datementioned.
The terms 'first half and 'second half of a month shall be construed respectively as the 1st to the 15th and the 16th to the last
day of the month, all dates inclusive.
The terms 'beginning', 'middle' and 'end' of a month shall be construed respectively as the ist to 10th, the 11th to the 20th and
the 21St to the last day of the month, all dates inclusive.
Branches in different countries are considered to be separate banks.
The date of issuance of the transport documents will be deemed to date of despatch, taking in charge or shipped on board
and the date of shipment. If the transport document indicates, by stamp or notation, a date of despatch taking in charge or
shipped on board, this date will be deemed to the date of shipment.
Trans-shipmentmeans unloading from onemeans of conveyance and reloading to anothermeans of conveyance (whether or not in
different modes of transport) during the carriage, from the place of dispatch taking in charge or shipment to the place of final
destination stated in the credit.
A clean transport documents is one bearing no clause of notation expressly declaring a defective condition of the goods or
their packaging.
If there is no indication in the credit about insurance coverage, amount of insurance coverage must be at least 110% of CIF or
CIP value of the goods.
