Uniform Customs and Practice for Documentary Credit, UCP 600

Uniform Customs and Practice for Documentary Credit

Article 1
Application of UCP
The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication
no. 600 are rules that apply to any documentary credit when the text of the credit expressly
indicates that it is subject to these rules. They are binding on all parties thereto unless
expressly modified or excluded by the credit.

Article 2
Definitions
For the purpose of these rules:
a) Advising bank means the bank that advises the credit at the request of the issuing bank.
b) Applicant means the party on whose request the credit is issued.
c) Banking day means a day on which a bank is regularly open at the place at which an act
subject to these rules is to be performed.
d) Beneficiary means the party in whose favour a credit is issued.
e) Complying presentation means a presentation that is in accordance with the terms and
conditions of the credit, the applicable provisions of these rules and international
standard banking practice.
f) Confirmation means a definite undertaking of the confirming bank, in addition to that of
the issuing bank, to honour or negotiate a complying presentation.
g) Confirming bank means the bank that adds its confirmation to a credit upon the issuing
bank's authorization or request.
h) Credit means any arrangement, however named or described, that is irrevocable and
thereby constitutes a definite undertaking of the issuing bank to honour a complying
presentation.
i) Honour means:
i. to pay at sight if the credit is available by sight payment;
ii. to incur a deferred payment undertaking and pay at maturity if the credit is
available by deferred payment;
iii. to accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity
if the credit is available by acceptance.

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Uniform Customs and Practice for Documentary Credit, UCP 600

j) Issuing bank means the bank that issues a credit at the request of an applicant or on its
own behalf. Negotiation means the purchase by the nominated bank of drafts (drawn on
a bank other than the nominated bank) and/or documents under a complying
presentation, by advancing or agreeing to advance funds to the beneficiary on or before
the banking day on which reimbursement is due to the nominated bank.
k) Nominated Bank means the bank with which the credit is available or any bank
in the case of a credit available with any bank.
l) Presentation means either the delivery of documents under a credit to the issuing bank
or nominated bank or the documents so delivered.
m) Presenter means a beneficiary, bank or other party that makes a presentation.

Article 3
Interpretations
For the purpose of these rules:
a) A credit is irrevocable even if there is no indication to that effect.
b) Terms such as first class, well known, qualified, independent, official, competent or local
used to describe the issuer of a document allow any issuer except the beneficiary
to issue that document.
c) Unless required to be used in a document, words such as prompt, immediately
or as soon as possible will be disregarded.
d) The expression on or about or similar will be interpreted as a stipulation that an event is
to occur during a period of five calendar days before until five calendar days
after the specified date, both start and end dates included.
e) The words to, until, till, from and between when used to determine a period of shipment
include the date or dates mentioned, and the words before and after exclude the date
mentioned.
f) The words from and after when used to determine a maturity date exclude the date
mentioned.
g) 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.
h) The terms beginning, middle and end of a month shall be construed respectively as
the 1st to the 10th, the 11th to the 20th and the 21st to the last day of the month, all dates
inclusive.

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Uniform Customs and Practice for Documentary Credit, UCP 600

Article 4
Credits v. contracts
a) A credit by its nature is a separate transaction from the sale or other contract on which
it may be based. Banks are in no way concerned with or bound by such contract, even if
any reference whatsoever to it is included in the credit. Consequently, the undertaking of
a bank to honour, to negotiate or to fulfil any other obligation under the credit is not
subject to claims or defences by the applicant resulting from its relationships with
the issuing bank or the beneficiary.
b) A beneficiary can in no case avail itself of the contractual relationships existing between
banks or between the applicant and the issuing bank.
c) An issuing bank should discourage any attempt by the applicant to include, as an integral
part of the credit, copies of the underlying contract, pro forma invoice and the like.

Article 5
Documents v. Goods, Services or Performance
Banks deal with documents and not with goods, services or performance to which
the documents may relate.

Article 6
Availability, expiry date and place for presentation
a) A credit must state the bank with which it is available or whether it is available with any
bank. A credit available with a nominated bank is also available with the issuing bank.
b) A credit must state whether it is available by sight payment, deferred payment,
acceptance or negotiation.
c) A credit must not be issued available by a draft drawn on the applicant.
d) A credit must state an expiry date for presentation. An expiry date stated for honour
or negotiation will be deemed to be an expiry date for presentation.
The place of the bank with which the credit is available is the place for presentation.
The place for presentation under a credit available with any bank is that of any bank.
A place for presentation other than that of the issuing bank is in addition to the place of
the issuing bank.
e) Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary
must be made on or before the expiry date.

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Uniform Customs and Practice for Documentary Credit, UCP 600

Article 7
Issuing bank undertaking
a) Provided that the stipulated documents are presented to the nominated bank or to
the issuing bank and that they constitute a complying presentation, the issuing bank must
honour if the credit is available by:
i. sight payment, deferred payment or acceptance with the issuing bank;
ii. sight payment with a nominated bank and that nominated bank does not pay;
iii. deferred payment with a nominated bank and that nominated bank does not incur
its deferred payment undertaking or, having incurred its deferred payment
undertaking, does not pay at maturity;
iv. acceptance with a nominated bank and that nominated bank does not accept a
draft drawn on it or, having accepted a draft drawn on it, does not pay at maturity;
v. negotiation with a nominated bank and that nominated bank does not negotiate.
b) An issuing bank is irrevocably bound to honour as of the time it issues the credit.
c) An issuing bank undertakes to reimburse a nominated bank that has honoured or
negotiated a complying presentation and forwarded the documents to the issuing bank.
Reimbursement for the amount of a complying presentation under a credit available by
acceptance or deferred payment is due at maturity, whether or not the nominated bank
prepaid or purchased before maturity. An issuing bank's undertaking to reimburse
a nominated bank is independent of the issuing bank's undertaking to the beneficiary.

Article 8
Confirming bank undertaking
a) Provided that the stipulated documents are presented to the confirming bank or to any
other nominated bank and that they constitute a complying presentation, the confirming
bank must:
honour, if the credit is available by
i. sight payment, deferred payment or acceptance with the confirming bank;
ii. sight payment with another nominated bank and that nominated bank does not
pay;
iii. deferred payment with another nominated bank and that nominated bank does
not incur its deferred payment undertaking or, having incurred its deferred
payment undertaking, does not pay at maturity;
iv. acceptance with another nominated bank and that nominated bank does not
accept a draft drawn on it or, having accepted a draft drawn on it, does not pay
at maturity;

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Uniform Customs and Practice for Documentary Credit, UCP 600

v. negotiation with another nominated bank and that nominated bank does not
negotiate.
negotiate, without recourse, if the credit is available by negotiation with the confirming
bank.
b) A confirming bank is irrevocably bound to honour or negotiate as of the time it adds its
confirmation to the credit.
c) A confirming bank undertakes to reimburse another nominated bank that has honoured
or negotiated a complying presentation and forwarded the documents to the confirming
bank. Reimbursement for the amount of a complying presentation under a credit
available by acceptance or deferred payment is due at maturity, whether or not another
nominated bank prepaid or purchased before maturity. A confirming bank's undertaking
to reimburse another nominated bank is independent of the confirming bank's
undertaking to the beneficiary.
d) If a bank is authorized or requested by the issuing bank to confirm a credit but is not
prepared to do so, it must inform the issuing bank without delay and may advise
the credit without confirmation.

Article 9
Advising of credits and amendments
a) A credit and any amendment may be advised to a beneficiary through an advising bank.
An advising bank that is not a confirming bank advises the credit and any amendment
without any undertaking to honour or negotiate.
b) By advising the credit or amendment, the advising bank signifies that it has satisfied itself
as to the apparent authenticity of the credit or amendment and that the advice accurately
reflects the terms and conditions of the credit or amendment received.

Article 10
Amendments
a) A credit can neither be amended nor cancelled without the agreement of the issuing
bank, the confirming bank, if any, and the beneficiary.
b) An issuing bank is irrevocably bound by an amendment as of the time it issues the
amendment. A confirming bank may extend its confirmation to an amendment and will be
irrevocably bound as of the time it advises the amendment. A confirming bank may,
however, choose to advise an amendment without extending its confirmation and, if so,
it must inform the issuing bank without delay and inform the beneficiary in its advice.
c) The terms and conditions of the original credit (or a credit incorporating previously
accepted amendments) will remain in force for the beneficiary until the beneficiary

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Uniform Customs and Practice for Documentary Credit, UCP 600

communicates its acceptance of the amendment to the bank that advised such
amendment. The beneficiary should give notification of acceptance or rejection of
an amendment. If the beneficiary fails to give such notification, a presentation that
complies with the credit and to any not yet accepted amendment will be deemed to be
notification of acceptance by the beneficiary of such amendment. As of that moment
the credit will be amended.
d) A bank that advises an amendment should inform the bank from which it received
the amendment of any notification of acceptance or rejection.
e) Partial acceptance of an amendment is not allowed and will be deemed to be notification
of rejection of the amendment.
f) A provision in an amendment to the effect that the amendment shall enter into force
unless rejected by the beneficiary within a certain time shall be disregarded.

Article 14
Standard for examination of documents
a) A nominated bank acting on its nomination, a confirming bank, if any, and the issuing
bank must examine a presentation to determine, on the basis of the documents alone,
whether or not the documents appear on their face to constitute a complying
presentation.
b) A nominated bank acting on its nomination, a confirming bank, if any, and the issuing
bank shall each have a maximum of five banking days following the day of presentation
to determine if a presentation is complying. This period is not curtailed or otherwise
affected by the occurrence on or after the date of presentation of any expiry date or last
day for presentation.
c) A presentation including one or more original transport documents must be made 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.
d) Data in a document, when read in context with the credit, the document itself
and international standard banking practice, need not be identical to, but must not conflict
with, data in that document, any other stipulated document or the credit.
e) In documents other than the commercial invoice, the description of the goods, services
or performance, if stated, may be in general terms not conflicting with their description
in the credit.
f) If a credit requires presentation of a document other than a transport document,
insurance document or commercial invoice, without stipulating by whom the document is
to be issued or its data content, banks will accept the document as presented
if its content appears to fulfil the function of the required document.

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Uniform Customs and Practice for Documentary Credit, UCP 600

g) A document presented but not required by the credit will be disregarded and may be
returned to the presenter.
h) If a credit contains a condition without stipulating the document to indicate compliance
with the condition, banks will deem such condition as not stated and will disregard it.
i) A document may be dated prior to the issuance date of the credit, but must not be dated
later than its date of presentation.
j) When the addresses of the beneficiary and the applicant appear in any stipulated
document, they need not be the same as those stated in the credit or in any other
stipulated document, but must be within the same country as the respective addresses
mentioned in the credit. Contact details (telefax, telephone, email and the like) stated as
part of the beneficiary's and the applicant's address will be disregarded. However, when
the address and contact details of the applicant appear as part of the consignee or notify
party details on a transport document, they must be as stated in the credit.

Article 15
Complying presentation
a) When an issuing bank determines that a presentation is complying, it must honour.
b) When a confirming bank determines that a presentation is complying, it must honour
or negotiate and forward the documents to the issuing bank.
c) When a nominated bank determines that a presentation is complying and honours
or negotiates, it must forward the documents to the confirming bank or issuing bank.

Article 16
Discrepant documents, waiver and notice
a) When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing
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 in its sole
judgement approach the applicant for a waiver of the discrepancies. This does not,
however, extend the period mentioned in sub-article 14 (b).
c) When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing
bank decides to refuse to honour or negotiate, it must give a single notice to that effect
to the presenter. The notice must state:
i. that the bank is refusing to honour or negotiate; and
ii. each discrepancy in respect of which the bank refuses to honour or negotiate; and
iii. that the bank is holding the documents pending further instructions from
the presenter; or

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Uniform Customs and Practice for Documentary Credit, UCP 600

that the issuing bank is holding the documents until it receives a waiver from
the applicant and agrees to accept it, or receives further instructions from
the presenter prior to agreeing to accept a waiver; or
that the bank is returning the documents; or
that the bank is acting in accordance with instructions previously received from
the presenter.
d) The notice required in sub-article 16 (c) must be given by telecommunication or, if that is
not possible, by other expeditious means no later than the close of the fifth banking day
following the day of presentation.
e) A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank
may, after providing notice required by sub-article 16 (c) (iii) (a) or (b), return
the documents to the presenter at any time.
f) If an issuing bank or a confirming bank fails to act in accordance with the provisions of
this article, it shall be precluded from claiming that the documents do not constitute
a complying presentation.
g) When an issuing bank refuses to honour or a confirming bank refuses to honour
or negotiate and has given notice to that effect in accordance with this article, it shall then
be entitled to claim a refund, with interest, of any reimbursement made.

Article 18
Commercial invoice
a) A commercial invoice:
i. must appear to have been issued by the beneficiary;
ii. must be made out in the name of the applicant;
iii. must be made out in the same currency as the credit; and
iv. need not be signed.
b) The description of the goods, services or performance in a commercial invoice must
correspond with that appearing in the credit.

Article 29
Expiry date
a) 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 for reasons other than those referred to
in article 36, the expiry date or the last day for presentation, as the case may be, will be
extended to the first following banking day.
b) The latest date for shipment will not be extended as a result of sub-article 29 (a).

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Uniform Customs and Practice for Documentary Credit, UCP 600

Article 30
Tolerance in credit amount, quantity and unit prices
a) The words about or approximately used in connection with the amount of the credit
or the quantity or the unit price stated in the credit 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 tolerance not to exceed 5% more or 5% less than the quantity of the goods is allowed,
provided the credit does not state the quantity in terms of a stipulated number of packing
units or individual items and the total amount of the drawings does not exceed
the amount of the credit.

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 good 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 38
Transferable Credits
a) A bank is under no obligation to transfer a credit except to the extent and in the manner
expressly consented to by that bank.
b) For the purpose of this article:
Transferable credit means a credit that specifically states it is transferable. A transferable
credit may be made available in whole or in part to another beneficiary (second
beneficiary) at the request of the beneficiary (first beneficiary).
Transferring bank means a nominated bank that transfers the credit or, in a credit
available with any bank, a bank that is specifically authorized by the issuing bank
to transfer and that transfers the credit. An issuing bank may be a transferring bank.
Transferred credit means a credit that has been made available by the transferring bank
to a second beneficiary.
c) Unless otherwise agreed at the time of transfer, all charges (such as commissions, fees,
costs or expenses) incurred in respect of a transfer must be paid by the first beneficiary.

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Uniform Customs and Practice for Documentary Credit, UCP 600

d) A credit may be transferred in part to more than one second beneficiary provided partial
shipments are allowed.
e) A transferred credit cannot be transferred at the request of a second beneficiary to any
subsequent beneficiary. The first beneficiary is not considered to be a subsequent
beneficiary.
f) Any request for transfer must indicate if and under what conditions amendments may be
advised to the second beneficiary. The transferred credit must clearly indicate those
conditions.
g) If a credit is transferred to more than one second beneficiary, rejection of an amendment
by one or more second beneficiary does not invalidate the acceptance by any other
second beneficiary, with respect to which the transferred credit will be amended
accordingly. For any second beneficiary that rejected the amendment, the transferred
credit will remain unamended.
h) The transferred credit must accurately reflect the terms and conditions of the credit,
including confirmation, if any, with the exception of:
⁻ the amount of the credit,
⁻ any unit price stated therein,
⁻ the expiry date,
⁻ the period for presentation, or
⁻ the latest shipment date or given period for shipment,
⁻ any or all of which may be reduced or curtailed.
The percentage for which insurance cover must be effected may be increased to provide
the amount of cover stipulated in the credit or these articles.
The name of the first beneficiary may be substituted for that of the applicant in the credit.
If the name of the applicant is specifically required by the credit to appear in any
document other than the invoice, such requirement must be reflected in the transferred
credit.
i) Presentation of documents by or on behalf of a second beneficiary must be made to
the transferring bank.

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