UCP 600 - Article 1

Application of UCP
The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 ("UCP")
are rules that apply to any documentary credit ("credit") (including, to the extent to which they may be
applicable, any standby letter of credit) when the text of the credit expressly indicates that it is subject to
Explanation
The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 ("UCP")
are rules that apply to any documentary credit
UCP 600 - Article 2
Definitions
For the purpose of these rules:
Advising bank means the bank that advises the credit at the request of the issuing bank.
Applicant means the party on whose request the credit is issued.
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.
Beneficiary means the party in whose favour a credit is issued.
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.
Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank,
to honour or negotiate a complying presentation.
Confirming bank means the bank that adds its confirmation to a credit upon the issuing bank's
authorization or request.
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.
Honour means:
a. to pay at sight if the credit is available by sight payment.
b. to incur a deferred payment undertaking and pay at maturity if the credit is available by deferred
payment.
c. to accept a bill of exchange ("draft") drawn by the beneficiary and pay at maturity if the credit is available
by acceptance.
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.
Nominated Bank means the bank with which the credit is available or any bank in the case of a credit
available with any bank.
Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank
or the documents so delivered.
Presenter means a beneficiary, bank or other party that makes a presentation.
Explanation
Advising bank means the bank that advises the credit at the request of the issuing bank.
Applicant means the party on whose request the credit is issued.
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.
Beneficiary means the party in whose favour a credit is issued
Nominated Bank means the bank with which the credit is available or any bank in the case of a credit
available with any bank.

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.
A beneficiary can in no case avail itself of the contractual relationships existing between banks or between
the applicant and the issuing bank.
b. An issuing bank should discourage any attempt by the applicant to include, as an integral part of the
credit, copies of the underlying contract, proforma invoice and the like

Explanation
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.

. UCP 600 - 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

Explanation
Banks deal with documents and not with goods, services or performance to which the documents may
Relate

UCP 600 - 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.
i. 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.
ii. 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.

Explanation
i. 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.
ii. 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.

UCP 600 - Article 12

Nomination
a. Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose
any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that
nominated bank and so communicated to the beneficiary.
b. 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.
c. Receipt or examination and forwarding of documents by a nominated bank that is not a confirming bank
does not make that nominated bank liable to honour or negotiate, nor does it constitute honour or
negotiation

Explanation
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.
UCP 600 - 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

Explanation
When a confirming bank determines that a presentation is complying, it must honour or negotiate and
forward the documents to the issuing bank.

UCP 600 - Article 17

Original Documents and Copies
a. At least one original of each document stipulated in the credit must be presented.
b. A bank shall treat as an original any document bearing an apparently original signature, mark, stamp, or
label of the issuer of the document, unless the document itself indicates that it is not an original.
c. Unless a document indicates otherwise, a bank will also accept a document as original if it:
i. appears to be written, typed, perforated or stamped by the document issuer's hand; or
ii. appears to be on the document issuer's original stationery; or
iii. states that it is original, unless the statement appears not to apply to the document presented.
d. If a credit requires presentation of copies of documents, presentation of either originals or copies is
permitted.
e. If a credit requires presentation of multiple documents by using terms such as "in duplicate", "in two fold"
or "in two copies", this will be satisfied by the presentation of at least one original and the remaining
number in copies, except when the document itself indicates otherwise

Explanation.
If a credit requires presentation of multiple documents by using terms such as "in duplicate", "in two fold"
or "in two copies", this will be satisfied by the presentation of at least one original and the remaining
number in copies, except when the document itself indicates otherwise

UCP 600 - Article 18

Commercial Invoice
a. A commercial invoice:
i. must appear to have been issued by the beneficiary (except as provided in article 38);
ii. must be made out in the name of the applicant (except as provided in sub-article 38 (g));
iii. must be made out in the same currency as the credit; and
iv. need not be signed.
b. A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may accept a
commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision
will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount
in excess of that permitted by the credit.
c. The description of the goods, services or performance in a commercial invoice must correspond with that
appearing in the credit.

Explanation
. A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may accept a
commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision
will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount
in excess of that permitted by the credit

UCP 600 - Article 27

Clean Transport Document
A bank will only accept a 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. The word "clean" need
not appear on a transport document, even if a credit has a requirement for that transport document to be
"clean on board".

Explanation
The word "clean" need
not appear on a transport document, even if a credit has a requirement for that transport document to be
"clean on board".

UCP 600 - Article 29

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. If presentation is made on the first following banking day, a nominated bank must provide the issuing
bank or confirming bank with a statement on its covering schedule that the presentation was made within
the time limits extended in accordance with sub-article 29 (a).
c. The latest date for shipment will not be extended as a result of sub-article 29 (a)
Explanation.
If presentation is made on the first following banking day, a nominated bank must provide the issuing
bank or confirming bank with a statement on its covering schedule that the presentation was made within
the time limits extended in accordance with sub-article

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.
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. This tolerance does
not apply when the credit stipulates a specific tolerance or uses the expressions referred to in sub-article 30

Explanation
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

UCP 600 - Article 33

Hours of Presentation
A bank has no obligation to accept a presentation outside of its banking hours.
UCP 600 - 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
Explanation
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,

UCP 600 - Article 36

Force Majeure
A bank assumes no liability or responsibility for the consequences arising out of the interruption of itbusiness by
Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or
lockouts or any other causes beyond its control.
A bank will not, upon resumption of its business, honour or negotiate under a credit that expired during such
interruption of its business the consignor, the carrier, the forwarder, the consignee or the insurer of the goods or
any other person.

Explanation
A bank will not, upon resumption of its business, honour or negotiate under a credit that expired during such
interruption of its business the consignor, the carrier, the forwarder, the consignee or the insurer of the goods or
any other person