UCP600 - english version

UCP600 & UCP500 Compared





Part I. The Modifications and Changes in General

a. Given 14 definitions at first and 12 interpretations to clarify the
meaning of ambiguous terms, refer to Art 2 & 3.
b. Agreed that the issuing bank must reimburse the nominated
bank even though the documents are lost in the transmitting
however, the presentation must be complying.
c. ……



Part II. Detailed Comparison for Each Article

Article 1 Application of UCP.................................................................................2
Article 2 Definitions................................................................................................2
Article 3 Interpretations..........................................................................................3
Article 4 Credits v. Contracts.................................................................................4
Article 5 Documents v. Goods, Services or Performance....................................4
Article 6 Availability, Expiry Date and Place for Presentation............................4
Article 7 Issuing Bank Undertaking.......................................................................5
Article 8 Confirming Bank Undertaking...............................................................6
Article 9 Advising of Credits and Amendments....................................................7
Article 10 Amendments..........................................................................................8
Article 11 Teletransmitted and Pre-Advised Credits and Amendments..............8

Article 12 Nomination............................................................................................9
Article 13 Bank-to-Bank Reimbursement Arrangements.....................................9
Article 14 Standard for Examination of Documents...........................................10
Article 15 Complying Presentation......................................................................12
Article 16 Discrepant Documents, Waiver and Notice.......................................12
Article 17 Original Documents and Copies.........................................................13
Article 18 Commercial Invoice............................................................................14
Article 19 Transport Document Covering at Least Two Different Modes of
Transport..............................................................................................15
Article 20 Bill of Lading.......................................................................................17
Article 21 Non-Negotiable Sea Waybill..............................................................19
Article 22 Charter Party Bill of Lading...............................................................20
Article 23 Air Transport Document.....................................................................21
Article 24 Road, Rail or Inland Waterway Transport Documents.....................23
Article 25 Courier Receipt, Post Receipt or Certificate of Posting...................24
Article 26 "On Deck", "Shipper's Load and Count", “Said by Shipper to
Contain” and Charges Additional to Freight.....................................25
Article 27 Clean Transport Document.................................................................25
Article 28 Insurance Document and Coverage....................................................25
Article 29 Extension of Expiry Date or Last Day for Presentation...................27
Article 30 Tolerance in Credit Amount, Quantity and Unit Prices....................27
Article 31 Partial Drawings or Shipments...........................................................27
Article 32 Instalment Drawings or Shipments....................................................28
Article 33 Hours of Presentation..........................................................................28
Article 34 Disclaimer on Effectiveness of Documents.......................................28
Article 35 Disclaimer on Transmission and Translation.....................................29
Article 36 Force Majeure......................................................................................29
Article 37 Disclaimer for Acts of an Instructed Party.........................................29
Article 38 Transferable Credits............................................................................30
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Article 39 Assignment of Proceeds......................................................................32

Part I. The Modifications and Changes in General

a. Given 14 definitions at first and 12 interpretations to clarify the
meaning of ambiguous terms, refer to Art 2 & 3. And we need
pay attention to the change about ‘negotiation’.
b. Agreed that the issuing bank must reimburse the nominated
bank even though the documents are lost in the transmitting
however, the presentation must be complying.
c. Denied the practice that banks stipulate the clause about which
the amendment should be accepted by beneficiary who did not
send any rejected advice in certain time, refer to sub-article 10
f.
d. Five banking days replaced reasonable time and seven banking
days, refer to sub-article 14 b.
e. Two kinds of form about refusing have been added in UCP600,
refer to sub-article 16 c iii.
f. Banks can now accept an insurance document that contains
reference to any exclusion clause, refer to sub-article 28 i.
g. The insurance document could be issued by proxies, refer
sub-article 28 a.
h. The clause for transport documents issued by Freight
Forwarders has been deleted.
i. The clause about carrying vessel propelled by sail only has
been deleted since that kind of sailboat has dropped out of
ocean transport.
j. The expression is straightaway, precise and compact, for
example, the wording for ‘unless the credit expressly
stipulates…’ is not used in UCP600.

k. The clause about shipment date has changed, refer to
sub-article 19 a ii, 20 a ii, 21 a ii and 22 a ii, especially to note
the effect to received bill of lading.
l. Canceled the blocking frame about the form of clauses.
m. The number of the clauses has decreased to 39 from original
49.
n. The deferred payment credit could be discounted or purchased.
o. Added the acts of terrorism as a kind of Force Majeure, refer to
Art 36.
p. Confirmed that the issuing bank may be a transferring bank,
refer to sub-article 38 b.



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Part II. Detailed Comparison for Each Article
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 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:
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
It is similar to the Art 1 of 500, however
there are three differences:
‘any’ replace ‘all’

‘when … rules’ replace ‘where … credit’

‘unless … credit’ replace ‘unless
otherwise … credit’
This article is new added, it clarifies many
definitions which didn’t defined in 500,
however, some items ever published in some
publications of ICC including 500, such as
Banking day, credit, etc.
Of cause, some items are first presented in
600 or have been amended so that we should
focus:



‘Complying presentation’ is a new term,
under 500, we usually used ‘ the documents
to be presented in compliance’, and the new

one is more concision.







In 500, the Art 2 gave the mean of credit and
four types L/C, and in Art 6 the irrevocable
and revocable L/C were listed at the same
time, however, in 600, the revocable L/C has
been deleted. So, we should note that all L/C
are irrevocable under UCP600.

Another difference is that the original four
types are changed into three categories,
which are called by a joint name - Honour,
which includes available by sight payment,
deferred payment and acceptance, and the
Negotiation was deleted from the basic types.
It was changed to a burchase behalf other
than payment type.

In 500, negotiation means the giving of value
for draft(s) and/or document(s), which
borrowed the jural definition. But there were
many issues and problems in the banking
practice, therefore it is amended in 600. And
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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.

Article 3 Interpretations

For the purpose of these rules:
Where applicable, words in the singular include the
plural and in the plural include the singular.

A credit is irrevocable even if there is no indication to that
effect.

A document may be signed by handwriting, facsimile
signature, perforated signature, stamp, symbol or any
other mechanical or electronic method of authentication.

A requirement for a document to be legalized, visaed,
certified or similar will be satisfied by any signature,

mark, stamp or label on the document which appears to
satisfy that requirement.

Branches of a bank in different countries are considered
to be separate bank.

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.

Unless required to be used in a document, words
such as "prompt", "immediately" or "as soon as possible"
will be disregarded.

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.

in 500 Art14 F that is about payment,
acceptance, and negotiation under reserve or
against an indemnity has been deleted. And it
is defined as ‘purchase…drafts…under a
complying presentation’. What is the
relationship between ‘honour’ and
‘negotiation’?

Please think who are the other parties.


It means the singular and plural in UCP600
has the same meaning, which might refer our
Chinese language, I think.

It is similar to the Art 6 C of 500, in fact,
under UCP600, only irrevocable credit was
stipulated.
It is similar to the Art 20 B of 500



It is similar to the Art 20 D of 500, however
the words ‘to be authenticated, validated’ are
deleted from this clause.



It is similar to the last sentence of 500 Art 2
and ‘separate’ replaces ‘another ’

It is similar to the Art 20 A of 500 and more
concision.

It is similar to the Art 46 B of 500, but it is
more rigorous and extensive since Art46 B
was applicable to Dates for Shipment.

It is similar to the Art 46 C of 500








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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.


The words “from” and "after" when used to determine
a maturity date exclude the date mentioned.

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 1st to the 10th, the
11th to the 20th and the 21st to the last day of the month,
all dates inclusive.

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.

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.
It is similar to the Art 47 A & B of 500,
added ‘between’ & ‘before’
It comes from ISBP P45(d), note the
difference when ‘from’ was used to
determine maturity date and period of
shipment



It is the same with the Art 47 C of 500



It is the same with the Art 47 D of 500
The section a. is the same with Art 3 of 500
except that it used the word ‘honour’.

It is similar to the Art 5 A ii of UCP500 but
the italic documents were new added in
UCP600.
It is similar to the Art 4 of 500
It is similar to the Art 10 B of 500. However
this clause gives a new item ‘Availability’
and admits freely available, but in Art 10 of
500 only negotiable L/C could be admitted as
freely available.


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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.

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.

It is the same with the Art 10 A of UCP500


It differs from ISBP P56 since ‘must not’ i/o
‘should not’, it is compelling denial.

It is a clause about expiry date and place for
presentation and similar to the Art 42 of
UCP500. However I don’t find the clause for
‘21 days’ like Art 43 A of UCP500 in
UCP600.
It is new added clause in UCP600.

It is similar to the Art 42 B of UCP500.
In UCP500, the liability of Issuing and
Confirming Banks were prescribed in Art 9.
In UCP600, they are divided into two clauses
Art 7 and Art 8.



In the new wording, it is more precise. This
sentence of ‘a.i.’ declares the basic liability of
Issuing Bank. Those sentences from ‘a.ii.’ to
‘a.v.’ declare that when the nominated bank
dishonoured the Issuing Bank must perform
its basic liability still.
The item i is ‘Straight L/C’.













In UCP500, an irrevocable credit constituted
a ‘definite undertaking of the Issuing Bank’,

however, in this clause ‘b ’, Issuing Bank is
‘irrevocably bound to honour’, which is the
same meaning as above.
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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:

i. honour, if the credit is available by

a. sight payment, deferred payment or
acceptance with the confirming bank;

b. sight payment with another nominated bank
and that nominated bank does not pay;

c. 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;

d. 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;


e. negotiation with a nominated bank and that
nominated bank does not negotiate.

ii. 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
This clause provides two undertakings of
Issuing Bank, one is to reimburse a
nominated bank, and the other is to pay to the
beneficiary. In UCP500, although there were

no details like UCP600, but the fact exited in
the practice. Of course, the clear documents
or complying presentation is necessary both
in the past and future.

In fact, this article reconfirms the first
responsibility to pay beneficiary even a
nominated bank (if any) by Issuing Bank.
This clause is almost same as last article,
however, there are some difference since the
Confirming Bank is other than Issuing Bank.
Therefore the sub-clause ‘a.ii’ is about
negotiate without recourse when the
Confirming Bank is nominated negotiating
bank by L/C and ‘b’ increases the word
‘negotiate’ compare with Issuing Bank.

Any way, a Confirming Bank acts the role of
second Issuing Bank, therefore it should
undertake the same responsibility as the
Issuing Bank.









It is similar to the relative section of Art 7.






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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.

c. An advising bank may utilize the services of another
bank (“second advising bank”) to advise the credit and
any amendment to the beneficiary. By advising the credit
or amendment, the second advising bank signifies that it
has satisfied itself as to the apparent authenticity of the
advice it has received and that the advice accurately
reflects the terms and conditions of the credit or
amendment received.

d. A bank utilizing the services of an advising bank or
second advising bank to advise a credit must use the
same bank to advise any amendment thereto.

e. If a bank is requested to advise a credit or amendment
but elects not to do so, it must so inform, without delay,
the bank from which the credit, amendment or advice
has been received.

f. If a bank is requested to advise a credit or amendment
but cannot satisfy itself as to the apparent authenticity of
the credit, the amendment or the advice, it must so
inform, without delay, the bank from which the
instructions appear to have been received. If the
advising bank or second advising bank elects




It is similar to Art 9 C of UCP500.

In fact the liability of Issuing and Confirming
Bank is not changed essentially.
This article adds some new element
comparing with Art 7 of UCP500.

It clarifies the independence of Advising
Bank which does not undertake to honour or
negotiate except that it is Confirming Bank at

the same time.


It is similar to Art 7 A of UCP500.






In banking practice, lots of L/C are advised
though second advising bank, but the
UCP500 has no relative clause. In UCP600,
this is confirmed and the second advising
bank has the same right with first one.





It appeared in Art 11 B of UCP500, and now
it has been clarified in special clause of
UCP600. Please refer to R401

It is similar to Art 7 A of UCP500.

It is similar to Art 7 B of UCP500.
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nonetheless to advise the credit or amendment, it must
inform the beneficiary or second advising bank that it has
not been able to satisfy itself as to the apparent
authenticity of the credit, the amendment or the advice..


Article 10 Amendments

a. Except as otherwise provided by article 38, 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 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 11 Teletransmitted and Pre-Advised Credits
and Amendments

a. An authenticated teletransmission of a credit or
The Art 9 D of UCP500 stipulated about
amendments, in UCP600, ICC draws a
separate clause about it. Then, we could
presume that a mass of problems and issues
about amendments happened in banking

practice. Please note it does not state
applicant at all.
Section a is similar to Art 9 D i of UCP500.

It is almost same as Art 9 D ii of UCP500.
The Confirming Bank has the
independence whether it extends its
confirmation to an amendment. There is no
change comparing with UCP500.




It is the same with Art 9 D iii of UCP500.
However, there is a case in dilemma. L/C
required that the goods be shipped under
four periods, each 100mt in Jan, Feb, Mar
and Apr. Now Issuing Bank gave an
amendment, which the shipment periods
were changed to May, Jun, Jul, and Aug.
Beneficiary did not send any notification
and shipped the first 100mt in Jan,
however, it shipped the second 100mt in
Jun. Could we consider the beneficiary
accept the amendment? If it is positive, is
the acceptation valid?

It is new content, however, in UCP600
draft of Jun 2006, the ‘should’ was i/o by
‘must’. The different tone decreases the

liability of the bank that advises the
amendment.

It is similar to Art 7 D iv of UCP500.



It comes from ICC R315. ICC considered
that those practices changed the irrevocable
nature of the L/C irrevocable undertaking.
And it disobeys some states’ laws.
It is similar to Art 11 A i of UCP500, but
the expression is stronger than it.

9
amendment will be deemed to be the operative credit or
amendment, and any subsequent mail confirmation shall
be disregarded.

If a teletransmission states "full details to follow" (or
words of similar effect), or states that the mail
confirmation is to be the operative credit or amendment,
then the teletransmission will not be deemed to be the
operative credit or amendment. The issuing bank must
then issue the operative credit or amendment without
delay in terms not inconsistent with the teletransmission.

b. A preliminary advice of the issuance of a credit or
amendment (“pre-advice”) shall only be sent if the
issuing bank is prepared to issue the operative credit or

amendment. An issuing bank that sends a pre-advice is
irrevocably committed to issue the operative credit or
amendment, without delay, in terms not inconsistent with
the pre-advice.





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.

Article 13 Bank-to-Bank Reimbursement
Arrangements

a. If a credit states that reimbursement is to be obtained
It is almost same as Art 11 A ii of UCP500.







Section b is almost same as Art 11 C ii of
UCP500, however, it deleted the original
words ‘unless otherwise stated…’ which
admitted Issuing Bank to state when, how or
on what conditions, if those were not to occur
without undue delay, but this state did not
include a term such as ‘operative’. Refer
R318 pls.

This article renews the Art 11 of UCP500,
and then the consecution of 600 is more
express and has stronger tone.
This article has replaced Art 18 of UCP500.

It is a little similar to Art 18 B of UCP500,

however, the instances are exiting largely in
banking practices. Therefore, UCP600 gives
the more detail clause to confirm the
independent rights of nominated bank.



It stipulates what is the meaning that issuing
bank selects the nominated bank. It is a new
clause too.



It reaffirms that the nominated bank could
ignore the issuing bank’s nomination if it is
not confirmation bank.

But the items about charges and applicant’s
liable which stipulated in Art 18 C & D are
deleted by UCP600, I have no idea about it!
It is similar Art 19 of UCP500.


In UCP500, Issuing Bank must give an
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by a nominated bank ("claiming bank") claiming on
another party ("reimbursing bank"),
the credit must
state if the reimbursement is subject to the ICC rules
for bank-to-bank reimbursements in effect on the

date of issuance of the credit.

b. If a credit does not state that reimbursement is
subject to the ICC rules for bank- to-bank
reimbursements, the following apply:

i. An issuing bank must provide a reimbursing
bank with a reimbursement authorization that
conforms with the availability stated in the credit. The
reimbursement authorization should not be subject
to an expiry date.

ii
. A claiming bank shall not be required to supply a
reimbursing bank with a certificate of compliance with
the terms and conditions of the credit.

iii. An issuing bank will be responsible for any loss of
interest, together with any expenses incurred, if
reimbursement is not provided on first demand by a
reimbursing bank in accordance with the terms and
conditions of the credit.

iv. A reimbursing bank's charges are for the account
of the issuing bank. However, if the charges are for
the account of the beneficiary, it is the responsibility
of an issuing bank to so indicate in the credit and in
the reimbursement authorization. If a reimbursing
bank's charges are for the account of the beneficiary,
they shall be deducted from the amount due to a

claiming bank when reimbursement is made. If no
reimbursement is made, the reimbursing bank's
charges remain the obligation of the issuing bank.


c. An issuing bank is not relieved of any of its obligations
to provide reimbursement if reimbursement is not made
by a reimbursing bank on first demand.

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
authorization, but under the frame of
UCP600, it is replaced by the italic sentence.
Even though this section uses the word
‘must’, there are different in next item. So I
don’t know the effect of ‘must’ in item a.


Opposite to item a, item b states the
condition when L/C does not state the
reimbursement is subject to ICC rules.

‘Must provide…authorization’ is the same as
UCP500.





It is almost same as Art 19 B of UCP500.



It renews D of UCP500, and adds the words
who will be responsible for any interest,
expense etc.




It is similar to Art 19 E of UCP500.

It is similar to Art 19 C of UCP500.


It includes more details than Art 13 of
UCP500.

It states that the nominated bank, confirming
bank and issuing bank must examine
documents independently. No essential
changes happened.


There are two changes than before, one is
that the checking time is decrease to 5
11
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 subject to articles 19, 20, 21, 22, 23,
24 or 25 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 and
otherwise complies with sub-article 14 (d).

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
banking days i/o 7 before, and the other is
that italic parts are increased.




It differs from Art 43 of UCP500 at all, it
strictly restricts the documents to be
presented within 21 calendar days and the
L/C need not stipulate the period for
presentation. Of course, the presentation
must be finished not later than the expiry date
of L/C.



It restates that what are ‘compliance’ and
‘consistency’. Please refer to R251.



It is similar to Art 37 C of UCP500. And
please note that it is a misunderstanding that

documents other than invoice should state the
description of the goods. Refer to R364. But
any way, the documents without description
goods must be founded sufficient relationship
with other documents, which L/C required.


It is similar to Art 21 of UCP500. Please note
the italic wording about ‘fulfill the function’,
it maybe bring some bother in future.





It is a new clause in UCP600. As to
‘presenter’, please refer to Art 2.


It is similar to Art 13 C of UCP500.





It is similar to Art 22 of UCP500. And the
sentence ‘but … presentation’ is added, in
another word, it expresses clearly that the
documents must be presented within the
presentation period of L/C.

12
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
subject to articles 19, 20, 21, 22, 23, 24 or 25, they must
be as stated in the credit.

k. The shipper or consignor of the goods indicated on
any document need not be the beneficiary of the credit.

l.
A transport document may be
issued by any party
other than a carrier, owner, master or charterer
provided that the transport document meets the
requirements of articles 19, 20, 21, 22, 23 or 24 of these
rules

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).

This item stipulates the issues about address
and telephone or fax number, which should
be disregarded under the frame of UCP600. It
comes from ISBP but go ahead again.

But please note this sentence ‘however…in
the credit’. When these information are parts
of consignee or notify party, they must
comply with L/C.


It is similar to Art 31 C of UCP500 but the
scope has been extended to any document
except bill of lading.

It is a new clause but these actions exist in
practice largely.
It is a new article since the concept of
‘Complying Presentation’ is presented at first
under the frame of UCP600.

It is liability of Issuing Bank, which is the
same as UCP500.

It is liability of Confirming Bank, which is
the same as UCP500.



It is the same as the practice under the frame
of UCP500, merely it has become official
clause of UCP600.
It is similar to Art 14 of UCP500

It is similar to Art 14 B of UCP500. But,
refer to the description of Art 2 of UCP600
hereto, when a presentation is not complying
presentation, bank should not purchase the
documents; if the bank buys the documents,
it could not get the jural rights for negotiating
bank.

It is the same as Art 14 C of UCP500.