kn 508 slide ucp 600

U CP 6 0 0

UCP 60 0 are t he lat est rev ision of t he Uniform Cust om s and Pract ice t hat govern t he oper at ion of let t er s of credit .

UCP 60 0 com es int o effect on 01 July 20 07

The 39 art icles of UCP 600 are a com pr ehen siv e and pract ical w orking aid t o bankers, law y er s, im port er s, and ex port er s, t ransport ex ecut ives, edu cat or s, and ever y one inv olv ed in let t er of credit t ransact i ons w orldw ide.

I CC U n ifor m Cu st om s a n d Pr a ct ice for D ocu m e n t a r y Cr e dit s ( U CP 6 0 0 )

For e w or d

This rev ision of t he Uniform Cust om s and Pract ice for Docum ent ary Credit s ( com m only called “ UCP” ) is t he sixt h r ev ision of t he rules since t hey w ere fir st prom ulgat ed in 1933. I t is t he fruit of m ore t han t hree y ears of w or k by t he I nt ernat ional Cham ber of Com m er ce’s ( I CC) Com m ission on Bank ing Technique and Pract ice.

I CC, w hich w as est ablished in 191 9, had as it s prim ary obj ect ive facilit at ing t he flow of int ernat ional t rade at a t im e w hen nat ionalism and prot ect ionism posed seriou s t hreat s t o t he w orld t rading syst em . I t w as in t hat spirit t hat t he UCP w ere first int roduced – t o allev iat e t he conf usion cau sed by indiv idual count ries’

prom ot ing t heir ow n nat ional r ules on let t er of credit pract ice. The ob j ect iv e, since at t ained, w as t o creat e a set of cont ract ual rules t hat w ould est ablish unif or m it y in t hat pract ice, so t hat pract it ioners w ould n ot hav e t o cope w it h a plet hora of oft en conflict ing nat ional regul at ions. The univer sal accept ance of t he UCP by pract it ioner s in cou nt ries w it h w idely div ergent econom ic and j udicial syst em s is a t est am ent t o t he rules’ success.

I t is im port ant t o recall t hat t he UCP represent t he w ork of a privat e int ernat ion al organizat ion, not a govern m ent al body . Since it s incept ion, I CC has insist ed on t he cent r al r ole of self- regulat ion in business pract ice. These rules, form ulat ed ent irely by ex pert s in the privat e sect or, have v alidat ed t hat approach. The UCP rem ain t he m ost successful set of privat e rules f or t rade ev er dev eloped.

A range of individuals and groups cont ribut ed t o t he curr ent rev ision, w hich is ent it led UCP 60 0. These include t he UCP Draft ing Group, w hich sift ed t hroug h m ore t han 5000 indiv idual com m ent s bef ore arriving at t his consensus t ex t ; t he UCP Con sult ing Group, consist ing of m em bers from m ore t han 25 count ries, w hich serv ed as t he advisor y body react ing t o and proposing changes t o t he v ariou s draft s; t he m ore t han 40 0 m em ber s of t he I CC Com m i ssion on Bank ing Techni que and Pract ice w ho m ade pert inent suggest ions f or changes in t he t ex t ; and I CC nat ional com m it t ees w orldw ide w hich t ook an act ive role in consolidat ing com m ent s f rom t heir m em ber s. I CC also expresses it s grat it ude t o pract it ioner s in t he t ransport an d insurance indu st ries, w hose percept iv e suggest ions honed t he final dr aft .

Guy Sebban Secret ary General

I nt er nat ional Ch am ber of Com m er ce

I n t r odu ct ion

I n May 20 03, t he I nt ern at ional Cham ber of Com m erce aut hori zed t he I CC Com m ission on Bank ing Technique and Pract ice ( Bank ing Com m ission) t o begin a r ev ision of t he Uniform Cust om s and Pract ice f or Docum ent ary Credit s, I CC Publicat ion 5 00.

As w it h ot her rev ision s, t he general obj ect iv e w as t o address developm ent s in t he bank ing, t ransport an d insurance indu st ries. Addit ionally , t here w as a need t o look at t he language and st y le used in t he UCP t o rem ov e w ording t h at could lead t o incon sist ent applicat ion and int erpret at ion.

When w ork on t he rev ision st art ed, a num ber of global sur vey s indicat ed t hat , because of discrepancies, approx im at ely 7 0% of docum ent s present ed under let t ers of credit w ere being rej ect ed on first present at ion. This obvi ously had, and cont in ues t o hav e, a negat iv e effect on t he let t er of credit being seen as a m eans of paym ent and, if uncheck ed, could hav e seri ous im plicat ions for m aint aining or increasing it s m arket share as a recognized m ean s of set t lem ent in int ernat ion al t r ade. The int roduct ion by banks of a discrepan cy f ee has highlight ed t he im port an ce of t his issue, especially w hen t he under ly ing discrepancies hav e been found t o be dubiou s or unsou nd. Whilst t he num ber of cases inv olvin g lit igat ion has not gr ow n during t he lif et im e of UCP 50 0, t he int roduct ion of t he I CC’s Docum ent ary Credit Disput e Resolut ion Ex pert ise Rules ( DOCDEX) in Oct ober 1 99 7 ( subsequent ly rev ised in March 200 2) has result ed in m ore t han 60 cases being decided.

To address t hese and ot her con cern s, t he Bank ing Com m ission est ablished a Draft ing Group t o revise UCP 50 0. I t w as also decided t o creat e a second group, k now n as t he Consult ing Group, t o rev iew and adv ise on early draft s subm it t ed by t he Draft ing Group. The Consult ing Group, m ade up of ov er 40 individuals f rom 26 cou nt r ies, consist ed of banking and t ransp ort indust ry ex per t s. Ably co- ch aired by John Turnb ull, Deput y General Manager, Sum it om o Mit sui Bank ing Corp orat ion Europ e Lt d, London and Carl o Di Ninni, Adv iser, I t alian Bankers Associat ion, Rom e, t he Con sult ing Gr oup pr ov ided v aluable input t o t he Draft ing Group prior t o r elease of draft t ex t s t o I CC nat ional com m it t ees.

The Draft ing Group began t he rev iew pr ocess by analy zing t he cont ent of t he of ficial Opinions issued by t he Bank ing Com m ission under UCP 50 0. Som e 5 00 Opinion s w ere rev iew ed t o assess w het her t he issues inv olv ed w arrant ed a change in, an addit ion t o or a delet ion of any UCP art icle. I n addit ion, considerat ion w as given t o t he cont ent of t he four Posit ion Papers issu ed by t he Com m ission in Sept em ber 1 994, t he t w o Decisions issued by t he Com m ission ( concer ning t he int r oduct ion of t he euro and t he det erm in at ion of w hat con st it ut ed an original docum ent under UCP 50 0 sub- art icle 20( b) and t he decisions issued in DOCDEX cases.

During t he rev ision process, not ice w as t ak en of t he considerable w ork t hat had been com plet ed in cr eat ing t he I nt er nat ional St andard Bank ing Pract ice for t he Ex am inat ion of Docum ent s un der Docum ent ary Credit s ( I SBP) , I CC Publicat ion 645. This publicat ion has ev olv ed int o a necessary com panion t o t he UCP for

det erm ining com pliance of docum ent s w it h t he t erm s of let t ers of credit . I t is t he ex pect at ion of t he Draft ing Group and t he Bank ing Com m issi on t hat t he applicat ion of t he principles cont ained in t he I SBP, including subsequent rev isions t hereof, w ill cont inue during t he t im e UCP 60 0 is in force. At t he t im e UCP 600 is im plem ent ed, t her e w ill be an updat ed v ersion of t he I SBP t o bring it s cont ent s in line w it h t he subst an ce and st yle of t he new rules.

The four Posit ion Paper s issued in Sept em ber 1994 w ere issued su bj ect t o t heir applicat ion u nder UCP 5 00; t herefore, t hey w ill not be applicable under UCP 60 0. Th e essence of t he Decision cov er ing t he

det erm inat ion of an original docum ent has been incorp or at ed int o t he t ex t of UCP 600. The out com e of t he DOCDEX cases w ere inv ariably based on ex ist ing I CC Bank ing Com m ission Opinions and t her ef ore cont ained no specific issues t hat required addr essing in t hese rules.

One of t he st ruct ural ch anges t o t he UCP is t he int roduct ion of ar t icles cov er ing definit ions ( art icle 2) and int erpret at ion s ( art icle 3) . I n pr ov iding definit ions of roles play ed by banks and t he m eaning of specif ic t erm s and ev ent s, UCP 600 av oids t he necessit y of repetit iv e t ex t t o ex plain t heir int erpret at ion and

applicat ion. Sim ilarly , t he art icle covering int erpret at ion s aim s t o t ak e t he am biguit y out of v ague or unclear language t hat appears in let t ers of cr edit and t o provide a definit iv e elucidat ion of ot her charact er ist ics of t he UCP or t he credit .

During t he course of t he last t hree years, I CC nat ion al com m it t ees w ere canv assed on a range of issues t o det erm ine t heir prefer ences on alt er nat ive t ex t s subm it t ed by t he Draf t ing Group. The result s of t his ex ercise and t he consider able input from nat ional com m it t ees on indiv idual it em s in t he t ex t is reflect ed in t he cont ent of UCP 600. The Draf t ing Group considered, not only t he cur rent pract ice relat iv e t o t he docum ent ar y cr edit , but also t ried t o envisage t he fut ure ev olut ion of t hat pract ice.

This rev ision of t he UCP represent s t he culm in at ion of over t hree y ears of ex t ensiv e analy sis, review , debat e and com prom ise am ong st t he various m em bers of t he Draft ing Group, t he m em bers of t he Bank ing

Com m ission an d t he respect iv e I CC nat ion al com m it t ees. Valuable com m ent has also been receiv ed from t he I CC Com m ission on Tran sport and Logist ics, t he Com m ission on Com m ercial Law an d Pract ice and t he Com m it t ee on I nsurance.

I t is not appropriat e for t his publicat ion t o prov ide an ex planat ion as t o w hy an art icle has been w orded in such a w ay or w hat is int ended by it s incorpor at ion int o t he rules. For t hose int erest ed in under st anding t he rat ionale and int erpret at i on of t he art icles of UCP 600, t his inform at ion w ill be found in t he Com m ent ary t o t he rules, I CC Publicat ion 601, w hich represent s t he Draft ing Group’s v iew s.

On behalf of t he Draf t ing Group I w ould like t o ex t end our deep appr eciat ion t o t he m em ber s of t he Consult ing Group, I CC nat ional com m it t ees and m em ber s of t he Banking Com m ission for t heir profession al com m ent s and t heir const r uct ive part icipat ion in t his process.

Special t hank s are due t o t he m em bers of t he Draft ing Group and t heir inst it ut ions, w ho are list ed below in alphabet ical order.

Nicole Keller – Vice President , Serv ice I nt er nat ional Prod uct s, Dresdner Bank AG, Frank fur t , Germ any; Represent at iv e t o t he I CC Com m ission on Bank ing Techn ique and Pract ice;

Laur ence Kooy – Legal Adviser, BNP Paribas, Paris, France; Represent at ive t o t he I CC Com m ission on Bank ing Tech nique and Pract ice.

Kat j a Lehr – Bu siness Manager, Tr ade Serv ices St andards, SWI FT, La Hulpe, Belgium , t hen Vice President , Mem bership Represent at ion, I nt er nat ional Finan cial Services Associat ion, New Jersey , USA; Represent at iv e t o t he I CC Com m ission on Banking Techniq ue and Pract ice;

Ole Malm qv ist – Vice President , Dansk e Bank , Copen hag en, Denm ark ; Represent at ive t o t he I CC Com m ission on Bank ing Tech nique and Pr act ice;

Paul Miserez – Head of Trade Finan ce St andards, SWI FT, La Hulpe, Belgium ; Represent at iv e t o t he I CC Com m ission on Bank ing Tech nique and Pr act ice;

René Mueller – Dir ect or, Cr edit Suisse, Zurich, Sw it zerland; Represent at iv e t o t he I CC Com m ission on Bank ing Tech nique and Pr act ice;

Chee Seng Soh – Con sult ant , Associat ion of Banks in Singapore, Singapore; Represent at ive t o t he I CC Com m ission on Bank ing Tech nique and Pr act ice;

Dan Tay lor – President and CEO, I nt ern at ional Financial Serv ices Associat ion., New Jersey USA; Vice Chair m an, I CC Com m ission on Bank ing Technique and Pr act ice;

Alex ander Zelenov – Dir ect or, Vneshecon om bank , Moscow , Russia; Vice Chairm an, I CC Com m ission on Bank ing Tech nique and Pr act ice;

Ron Kat z – Policy Manager, I CC Com m ission on Banking Technique and Pract ice, I nt er nat ional Cham ber of Com m er ce, Paris, Fr ance.

The undersign ed had t he pleasure of chairing t he Draft ing Group.

I t w as t hrough t he gener ou s giv ing of t heir k now ledge, t im e and ener gy t hat t his rev ision w as accom plished so su ccessfully . As Chair of t he Draft ing Group, I w ould lik e t o ext end t o t hem and t o t heir inst it ut ions m y grat it ude for t heir cont ribut ion, for a j ob w ell done and for t heir f riendship. I w ould also like t o ex t end m y sincere t hank s t o t he m anagem ent of ABN AMRO Bank N. V., for t heir underst anding, pat ience and support during t he cou rse of t his rev ision process.

Gary Collyer Corporat e Direct or,

ABN AMRO Bank N.V., London, England

and Techni cal Adv iser t o t he I CC Com m ission on Banking Technique and Pract ice Nov em ber 20 06

U CP 6 0 0 - Ar t icle 1

Applicat ion of UCP

The Uniform Cust om s and Pr act ice for Docu m ent ary Cr edit s, 200 7 Rev ision, I CC Publicat ion n o. 600 ( " UCP" ) are rules t hat apply t o any docu m ent ary credit ( " credit " ) ( including, t o t he ext ent t o w hich t hey m ay be applicable, any st andby let t er of credit ) w hen t he t ext of t he credit expressly indicat es t hat it is subj ect t o t hese rules. They are binding on all part ies t heret o unless ex pressly m odified or excluded by t he credit .

U CP 6 0 0 - Ar t icle 2

Def init ions

For t he purpose of t hese rules:

A dvisin g b an k m eans t he bank t hat adv ises t he credit at t he request of t he issuing bank .

A pplica n t m eans t he part y on w h ose request t he credit is issued.

Ban kin g da y m eans a day on w hich a bank is regularly open at t he place at w hich an act subj ect t o t hese

rules is t o be perform ed.

Ben eficiar y m eans t he part y in w hose favour a credit is issued.

Com plyin g p r esen t a t ion m eans a present at ion t hat is in accordance w it h t he t erm s and condit ions of t he

credit , t he applicable provisions of t hese rules and int ernat ional st and ard bank ing pract ice.

Con fir m at ion m ean s a definit e undert ak ing of t he confirm ing bank , in addit ion t o t hat of t he issuing bank ,

t o honour or negot iat e a com ply ing present at ion.

Con fir m in g b a n k m eans t he bank t hat adds it s confirm at ion t o a credit upon t he issuing bank' s

aut horizat ion or request .

Cr e dit m eans any arrangem ent , how ev er nam ed or described, t hat is irrev ocable and t hereby con st it ut es a

definit e undert ak ing of t he issuing bank t o honour a com ply ing present at ion.

H on ou r m ea n s:

a . t o pay at sight if t he credit is av ailable by sight paym ent .

b. t o incur a deferred pay m ent undert ak ing and pay at m at urit y if t he cr edit is av ailable by def erred

paym ent .

c. t o accept a bill of ex change ( " draft " ) dr aw n by t he ben eficiary and pay at m at urit y if t he credit is available

by accept ance.

I ssu in g ba n k m eans t he bank t hat issues a credit at t he request of an applicant or on it s ow n behalf.

N e g ot ia t ion m eans t he pur chase by t he nom in at ed ban k of dr aft s ( draw n on a bank ot her t han t he

nom in at ed bank ) and/ or docum ent s und er a com plying p resent at i on, by advancing or agreeing t o adv ance f unds t o t he benef iciary on or bef ore t he bank ing day on w hich reim bur sem ent is due t o t he nom inat ed bank .

N om in at e d Ba n k m eans t he bank w it h w hich t he cr edit is av ailable or any bank in t he case of a credit

av ailable w it h any bank .

Pr ese n t a t ion m eans eit her t he delivery of docum ent s u nder a credit t o t he issuing bank or nom inat ed bank

or t he docu m ent s so deliv ered.

U CP 6 0 0 - Ar t icle 3

I nt er pret at ions

For t he purpose of t hese rules:

Where applicable, w or ds in t he singular include t he plural and in t he plural include t he singular. A credit is irrev ocable ev en if t here is no indicat ion t o t hat eff ect .

A docu m ent m ay be signed by handw rit ing, facsim ile signat ure, perforat ed signat ure, st am p, sym bol or any ot her m echanical or elect ronic m et h od of aut hent icat ion.

A requirem ent for a docum ent t o be legalized, v isaed, cer t ified or sim ilar w ill be sat isfied by any signat ure, m ark , st am p or label on t he docum ent w hich appear s t o sat isf y t hat requirem ent .

Branches of a bank in different count ries are con sidered t o be separ at e bank s.

Term s such as " first class" , " w ell know n" , " qualified" , " independent " , " official" , " com pet ent " or " local" used t o describe t he issuer of a docum ent allow any issuer ex cept t he benef iciary t o issue t hat docum ent . Unless required t o be used in a docum ent , w ord s such as " prom pt " , " im m ediat ely " or " as soon as possible" w ill be disregarded.

The ex pression " on or ab out " or sim ilar w ill be int erpret ed as a st ipulat ion t hat an event is t o occu r during a period of five calendar day s bef ore unt il five calendar day s aft er t he specif ied dat e, bot h st art and end dat es included.

The w ords " t o" , " u nt il" , " t ill" , "from " and " bet w een" w hen used t o det erm ine a period of shipm ent includ e t he dat e or dat es m ent ioned, and t he w or ds " before" and " aft er" ex clude t he dat e m ent ioned.

The w ords " from " and " aft er" w hen used t o det erm ine a m at urit y dat e ex clude t he dat e m ent ioned.

The t erm s " first half" and " second half" of a m ont h shall be const r ued respect ively as t he 1st t o t he 15t h and t he 16t h t o t he last day of t he m ont h, all dat es inclusive.

The t erm s " beginning" , " m iddle" and " end" of a m ont h shall be const rued respect ively as t he 1st t o t he 10t h, t he 11t h t o t he 20t h and t he 21 st t o t he last day of t he m ont h, all dat es inclusiv e.

U CP 6 0 0 - Ar t icle 4

Credit s v . Cont ract s

a . A credit by it s nat ure is a separat e t ransact ion from t he sale or ot her cont ract on w hich it m ay be based.

Bank s are in no w ay concer ned w it h or bound by su ch cont ract , ev en if any reference w hat soev er t o it is included in t he credit . Consequent ly , t he undert ak ing of a bank t o hon our, t o negot iat e or t o f ulfil any ot her obligat ion under t he credit is not subj ect t o claim s or defences by t he applicant result ing from it s

relat ionships w it h t he issuing bank or t he beneficiary .

A beneficiary can in no case av ail it self of t he cont ract ual relat ionships ex ist ing bet w een bank s or bet w een t he applicant and t he issuing bank .

b. An issuing bank should discourage any at t em pt by t he applicant t o include, as an int egral part of t he

credit , copies of t he underlying cont ract , profor m a invoice and t he lik e.

U CP 6 0 0 - Ar t icle 5

Docum ent s v. Goods, Serv ices or Per for m an ce

Bank s deal w it h docu m ent s and not w it h good s, serv ices or perf orm ance t o w hich t he docum ent s m ay relat e.

U CP 6 0 0 - Ar t icle 6

Av ailabilit y , Ex piry Dat e and Place for Present at ion

a . A credit m ust st at e t he bank w it h w hich it is av ailable or w het her it is av ailable w it h any bank . A credit

av ailable w it h a nom inat ed bank is also av ailable w it h t he issuing bank.

b. A credit m ust st at e w het her it is av ailable by sight pay m ent , deferred pay m ent , accept an ce or

negot iat ion.

c. A credit m ust not be issued av ailable by a draf t draw n on t he applicant .

d.

i. A credit m ust st at e an ex piry dat e for present at ion. An ex piry dat e st at ed f or honour or negot iat ion w ill be

deem ed t o be an ex piry dat e for present at ion.

ii. The place of t he bank w it h w hich t he credit is available is t he place for present at ion. The place for

present at i on under a credit av ailable w it h any bank is t hat of any bank. A place f or present at ion ot her t han t hat of t he issuing bank is in addit ion t o t he place of t he issuing bank .

e . Ex cept as prov ided in sub- art icle 29 ( a) , a present at ion by or on behalf of t he beneficiary m ust be m ade

on or bef ore t he ex piry dat e.

U CP 6 0 0 - Ar t icle 7

I ssuing Bank Undert ak ing

a . Prov ided t hat t he st ipulat ed docum ent s are present ed t o t he nom inat ed bank or t o t he issuing bank and

t hat t hey con st it ut e a com ply ing present at ion, t he issuin g bank m ust honour if t he credit is av ailable by :

i. sight pay m ent , deferred pay m ent or accept an ce w it h t he issuing bank ;

ii. sight pay m ent w it h a nom inat ed bank and t hat nom in at ed bank does not pay ;

iii. deferred pay m ent w it h a nom inat ed bank and t hat nom inat ed bank does not incur it s deferred pay m ent

undert ak ing or , hav ing incurred it s deferred pay m ent un dert ak ing, does not pay at m at urit y ;

iv. accept ance w it h a nom inat ed bank and t hat nom inat ed bank does not accept a draft draw n on it or,

having accept ed a draft draw n on it , does not pay at m at urit y ;

v. negot iat ion w it h a nom inat ed bank and t hat nom inat ed bank does not neg ot iat e.

b. An issuing bank is irrevocably bound t o honour as of t he t im e it issues t he credit .

c. An issuing bank undert akes t o reim bur se a nom inat ed bank t hat has honou red or negot iat ed a com ply ing

present at i on and for w arded t he docum ent s t o t he issuing bank . Reim bursem ent for t he am ount of a com ply ing present at ion under a credit available by accept ance or deferred pay m ent is due at m at urit y , w het her or not t he nom inat ed bank prepaid or purchased bef ore m at urit y. An issuing bank 's undert ak ing t o reim burse a nom inat ed bank is independent of t he issuing bank 's undert ak ing t o t he beneficiar y.

U CP 6 0 0 - Ar t icle 8

Confirm ing Bank Undert ak ing

a . Prov ided t hat t he st ipulat ed docum ent s are present ed t o t he confirm ing bank or t o any ot her nom inat ed

bank and t hat t hey const it ut e a com ply ing present at ion, t he conf irm ing bank m ust :

i. honour , if t he credit is av ailable by

b. sight pay m ent w it h anot her nom inat ed bank and t hat nom in at ed bank does not pay;

c. deferred pay m ent w it h anot her n om in at ed bank and t hat nom inat ed bank does not incur it s deferred

paym ent un dert ak ing or, hav ing incurred it s deferred pay m ent undert ak ing, does n ot pay at m at urit y ;

d. accept ance w it h anot her n om inat ed bank and t hat nom inat ed bank does not accept a draf t draw n on it

or, hav ing accept ed a draft draw n on it , does not pay at m at urit y;

e . negot iat ion w it h anot her nom inat ed bank and t hat nom inat ed bank does not negot iat e.

ii. negot iat e, w it hout recourse, if t he credit is available by negot iat ion w it h t he confirm ing bank .

b. A conf irm ing bank is irrev ocably bound t o honour or negot iat e as of t he t im e it adds it s conf irm at ion t o

t he credit .

c. A confirm ing bank undert ak es t o reim b urse an ot her n om inat ed bank t hat has honoured or neg ot iat ed a

com ply ing present at ion and forw arded t he docum ent s t o t he confirm ing bank. Reim bu rsem ent f or t he am ount of a com ply ing present at ion under a credit av ailable by accept ance or def err ed paym ent is due at m at urit y , w het her or n ot anot her nom inat ed bank prepaid or purchased before m at urit y . A confirm ing bank ' s under t ak ing t o reim burse anot her nom in at ed ban k is independent of t he confirm ing bank 's undert ak ing t o t he beneficiary .

d. I f a bank is aut hor ized or req uest ed by t he issuing bank t o confirm a credit but is not prepared t o do so,

it m ust inform t he issuing bank w it hout delay and m ay adv ise t he credit w it hout confirm at ion.

U CP 6 0 0 - Ar t icle 9

Advising of Credit s and Am endm ent s

a . A credit and any am endm ent m ay be adv ised t o a beneficiary t hr ough an advising bank . An adv ising bank

t hat is not a confirm ing bank adv ises t he credit and any am endm ent w it hout any undert aking t o honour or negot iat e.

b. By adv ising t he credit or am endm ent , t he adv ising bank signif ies t hat it has sat isf ied it self as t o t he

apparent aut hent icit y of t he credit or am endm ent and t h at t he adv ice accur at ely reflect s t he t erm s and condit ions of t he credit or am end m ent receiv ed.

c. An adv ising bank m ay ut ilize t he services of anot her bank ( " second adv ising bank " ) t o adv ise t he credit

and any am en dm ent t o t he beneficiary . By adv ising t he credit or am endm ent , t he second adv ising bank signif ies t hat it has sat isf ied it self as t o t he apparent aut hent icit y of t he adv ice it has received and t hat t he advice accurat ely reflect s t he t erm s and condit ion s of t he credit or am endm ent received.

d. A bank ut ilizing t he services of an adv ising bank or second adv ising bank t o adv ise a credit m ust use t he

sam e bank t o adv ise any am end m ent t heret o.

e . I f a bank is request ed t o advise a credit or am endm en t but elect s not t o do so, it m ust so inform , w it hout

delay , t he bank from w hich t he credit , am endm ent or advice has been receiv ed.

f. I f a bank is request ed t o adv ise a credit or am endm en t but cannot sat isfy it self as t o t he apparent

aut hent icit y of t he credit , t he am endm ent or t he adv ice, it m ust so inform , w it hout delay , t he bank fr om w hich t he inst r uct ion s appear t o have been receiv ed. I f t he advising bank or second adv ising bank elect s nonet heless t o adv ise t he credit or am endm ent , it m ust inform t he beneficiary or second adv ising bank t hat it has not been able t o sat isfy it self as t o t he appar ent aut hent icit y of t he credit , t he am endm ent or t he advice.

U CP 6 0 0 - Ar t icle 1 0

Am end m ent s

a . Ex cept as ot herw ise prov ided by art icle 38, a credit can neit her be am ended nor can celled w it hout t he

b. An issuing bank is irrevocably bound by an am endm ent as of t he t im e it issues t he am end m ent . A

confirm ing bank m ay ext end it s confirm at ion t o an am endm ent and w ill be irrevocably bound as of t he t im e it adv ises t he am endm ent . A confirm ing bank m ay , how ev er , choose t o adv ise an am endm ent w it hout ex t ending it s confirm at ion and, if so, it m ust inform t he issuing bank w it hout delay and inform t he beneficiary in it s adv ice.

c. The t erm s and condit ion s of t he original credit ( or a credit incorporat in g pr ev iously accept ed

am end m ent s) w ill rem ain in force for t he benef iciary unt il t he benef iciary com m unicat es it s accept ance of t he am end m ent t o t he bank t hat adv ised such am endm ent . The beneficiary sh ould giv e not ificat ion of accept ance or rej ect ion of an am endm ent . I f t he benef iciary fails t o giv e such not if icat ion, a present at ion t hat com plies w it h t he credit and t o any not yet accept ed am endm ent w ill be deem ed t o be not ificat ion of accept ance by t he beneficiary of such am endm ent . As of t hat m om ent t he credit w ill be am ended.

d. A bank t hat advises an am endm ent should inform t he bank from w hich it receiv ed t he am endm ent of any

not ificat ion of accept ance or rej ect ion.

e . Part ial accept ance of an am end m ent is not allow ed and w ill be deem ed t o be not ificat ion of rej ect ion of

t he am end m ent .

f. A prov ision in an am endm ent t o t he ef fect t hat t he am endm ent shall ent er int o f orce unless rej ect ed by

t he beneficiary w it hin a cert ain t im e shall be disregarded.

U CP 6 0 0 - Ar t icle 1 1

Telet ran sm it t ed and Pre- Adv ised Credit s and Am endm en t s

a . An aut hent icat ed t elet ransm ission of a credit or am en dm ent w ill be deem ed t o be t he operat iv e credit or

am end m ent , and any subsequent m ail confirm at ion sh all be disregarded.

I f a t elet ransm ission st at es " full det ails t o follow " ( or w ords of sim ilar effect ) , or st at es t hat t he m ail confirm at i on is t o be t he oper at iv e cr edit or am endm ent , t hen t he t elet ransm ission w ill not be deem ed t o be t he operat ive credit or am endm ent . The issuing bank m ust t hen issue t he oper at iv e credit or am endm ent w it hout delay in t erm s not inconsist ent w it h t he t elet ransm ission.

b. A prelim inary advice of t he issuance of a credit or am endm ent ( " pre- adv ice" ) shall only be sent if t he

issuing bank is pr epared t o issue t he operat iv e credit or am endm ent . An issuing bank t hat send s a pre-advice is irrevocably com m it t ed t o issue t he operat iv e cr edit or am endm ent , w it hout delay, in t erm s not incon sist ent w it h t he pre- adv ice.

U CP 6 0 0 - Ar t icle 1 2

Nom inat ion

a . Unless a nom inat ed bank is t he conf irm ing bank , an aut horizat ion t o honour or neg ot iat e does not im pose

any obligat ion on t hat n om inat ed bank t o honour or neg ot iat e, ex cept w hen ex pressly agreed t o by t hat nom in at ed bank and so com m u nicat ed t o t he beneficiary .

b. By nom inat i ng a bank t o accept a draft or incur a deferred pay m ent undert aking, an issuing bank

aut horizes t hat nom in at ed bank t o prepay or purchase a draft accept ed or a def err ed paym ent undert ak ing incurred by t hat nom inat ed bank .

c. Receipt or exam inat ion and f or w ardi ng of docum ent s by a nom inat ed bank t hat is not a confirm ing bank

does not m ak e t hat nom inat ed bank liable t o honour or negot iat e, nor does it const it ut e h onour or negot iat ion.

U CP 6 0 0 - Ar t icle 1 3

Bank - t o- Bank Reim bur sem ent Arrangem ent s

a . I f a credit st at es t hat reim bur sem ent is t o be obt ained by a nom inat ed bank ( " claim ing bank " ) claim ing

on anot her part y ( " reim bursing bank " ) , t he credit m ust st at e if t he reim bursem ent is subj ect t o t he I CC rules f or bank- t o- bank r eim bur sem ent s in ef fect on t he dat e of issuance of t he credit .

b. I f a credit does not st at e t hat reim bur sem ent is subj ect t o t he I CC r ules for bank - t o- bank

reim bursem ent s, t he follow ing apply :

i.An issuing bank m ust provide a reim bur sing bank w it h a reim bursem ent aut horizat ion t hat confor m s w it h

t he av ailabilit y st at ed in t he credit . The r eim bursem ent aut hor izat ion should not be subj ect t o an ex piry dat e.

ii.A claim ing bank shall not be required t o supply a reim bur sing bank w it h a cert if icat e of com pliance w it h

t he t erm s and condit ion s of t he credit .

iii.An issuing bank w ill be responsible f or any loss of int erest , t oget her w it h any expenses incurr ed, if

reim bursem ent is not prov ided on first dem and by a reim bursi ng bank in accordan ce w it h t he t erm s and condit ions of t he credit .

iv.A reim bu rsing bank 's charges are for t he accou nt of t he issuing bank . How ev er, if t he charges are for t he

account of t he beneficiary , it is t he respon sibilit y of an issuing bank t o so indicat e in t he credit and in t he reim bursem ent aut hori zat ion. I f a reim bursing bank 's ch ar ges are for t he account of t he beneficiary, t hey shall be deduct ed from t he am ount due t o a claim ing bank w hen reim bur sem ent is m ade. I f no

reim bursem ent is m ade, t he reim bu rsing bank 's charges rem ain t he obligat ion of t he issuing bank .

c. An issuing bank is not relieved of any of it s obligat ions t o prov ide reim bursem ent if reim bursem ent is not

m ade by a reim bursing bank on f irst dem and.

U CP 6 0 0 - Ar t icle 1 4

St andard for Ex am inat ion of Docum ent s

a . A nom inat ed bank act ing on it s nom inat ion, a confirm ing bank , if any , and t he issuing bank m ust ex am ine

a present at ion t o det erm ine, on t he basis of t he docum ent s alone, w het h er or not t he docum ent s appear on t heir face t o const it ut e a com ply ing present at ion.

b. A nom inat ed bank act ing on it s nom inat ion, a confirm ing bank, if any , and t he issuing bank sh all each

have a m ax im u m of fiv e banking day s follow ing t he day of pr esent at ion t o det er m ine if a present at ion is com ply ing. This period is not curt ailed or ot herw ise af fect ed by t he occurren ce on or aft er t he dat e of present at i on of any ex piry dat e or last day for present at ion.

c. A present at ion including one or m ore original t ran spor t docum ent s su bj ect t o art icles 19, 20, 2 1, 22, 23,

24 or 2 5 m ust be m ade by or on behalf of t he beneficiary not lat er t han 21 calendar day s af t er t he dat e of shipm ent as described in t hese rules, but in any ev ent not lat er t han t he ex piry dat e of t he credit .

d. Dat a in a docum ent , w hen read in cont ex t w it h t he cr edit , t he docum ent it self and int ernat ion al st andard

bank ing pract ice, need n ot be ident ical t o, but m ust not conflict w it h, dat a in t hat docum ent , any ot her st ipulat ed docum ent or t he credit .

e . I n docum ent s ot her t han t he com m ercial inv oice, t he descript ion of t he goods, serv ices or perform an ce, if

st at ed, m ay be in general t erm s not conflict ing w it h t heir descript ion in t he credit .

f. I f a credit requires present at ion of a docum ent ot her t han a t ransport docum ent , insur ance docum ent or

com m ercial inv oice, w it hout st ipulat ing by w hom t he docum ent is t o be issued or it s dat a cont ent , bank s w ill accept t he docum ent as present ed if it s cont ent appears t o f ulfil t he funct ion of t he required docu m ent and ot herw ise com plies w it h sub- art icle 14 ( d) .

g. A docu m ent pr esent ed but not required by t he credit w ill be disregarded and m ay be ret urned t o t he

present er.

h . I f a credit cont ains a con dit ion w it hout st ipulat ing t he docum ent t o indicat e com pliance w it h t he

condit ion, bank s w ill deem such condit ion as n ot st at ed and w ill disregard it .

i. A docum ent m ay be dat ed prior t o t he issuance dat e of t he credit , but m ust not be dat ed lat er t han it s

dat e of present at ion.

j . When t he addresses of t he benef iciary and t he applicant appear in any st ipulat ed docu m ent , t hey need

not be t he sam e as t h ose st at ed in t he credit or in any ot her st ipulat ed docum ent , but m ust be w it hin t he sam e count ry as t he respect iv e addresses m ent ion ed in t he credit . Cont act det ails ( t elefax , t elephone, em ail

and t he lik e) st at ed as part of t he beneficiary 's and t he applicant 's addr ess w ill be disregarded. How ever, w hen t he address and cont act det ails of t he applicant appear as par t of t he consignee or not ify part y det ails on a t ransp ort docum ent subj ect t o art icles 19, 2 0, 21, 22, 23, 24 or 25, t hey m ust be as st at ed in t he credit .

k . The shipper or consign or of t he goods indicat ed on an y docum ent need not be t he benef iciary of t he

credit .

l. A t ransport docum ent m ay be issued by any part y ot h er t han a carrier , ow ner , m ast er or chart erer

prov ided t hat t he t ransport docum ent m eet s t he requirem ent s of art icles 19, 2 0, 21, 22, 23 or 24 of t hese rules.

U CP 6 0 0 - Ar t icle 1 5

Com plying Present at ion

a . When an issuing bank det er m ines t hat a present at ion is com ply ing, it m ust honour.

b. When a confir m ing bank det erm ines t hat a pr esent at ion is com ply ing, it m ust honour or negot iat e and

f orw ard t he docu m ent s t o t he issuing bank.

c. When a nom inat ed bank det erm in es t hat a present at ion is com ply ing and h on our s or negot iat es, it m ust

f orw ard t he docu m ent s t o t he confirm ing bank or issuing bank.

U CP 6 0 0 - Ar t icle 1 6

Discrepant Docum ent s, Waiver and Not ice

a . When a nom in at ed bank act ing on it s nom inat ion, a conf irm ing bank , if any, or t he issuing bank

det erm ines t hat a present at ion does not com ply , it m ay refuse t o hon our or negot iat e.

b. When an issuing bank det erm ines t hat a present at ion does not com ply , it m ay in it s sole j udgem ent

approach t he applicant for a w aiv er of t he discr epancies. This does n ot , how ev er, ex t end t he period m ent ioned in sub- art icle 14 ( b) .

c. When a nom inat ed bank act ing on it s nom inat ion, a confirm ing bank , if any , or t he issuing bank decides

t o r efuse t o honour or neg ot iat e, it m ust giv e a single not ice t o t hat effect t o t he present er. The not ice m u st st at e:

i. t hat t he bank is refusing t o honour or neg ot iat e; and

ii. each discrepancy in respect of w hich t he bank refuses t o honour or negot iat e; and

iii.

a) t hat t he bank is holding t he docu m ent s pen ding furt h er inst ruct ions from t he present er; or

b) t hat t he issuing bank is holding t he docum ent s unt il it receives a w aiver f rom t he applicant and agrees t o accept it , or receives furt her inst ru ct ion s from t he present er prior t o agreeing t o accept a w aiv er; or c) t hat t he bank is ret urning t he docum ent s; or

d) t hat t he bank is act ing in accordance w it h inst ru ct ions prev iously receiv ed fr om t he present er.

d. The not ice r equired in sub- art i cle 16 ( c) m ust be giv en by t elecom m u nicat ion or, if t hat is not possible, by

ot her expedit iou s m ean s no lat er t han t he close of t he f ift h bank ing day follow ing t he day of present at ion.

e . A nom inat ed bank act ing on it s nom inat ion, a confirm ing bank , if any , or t he issuing bank m ay , aft er

prov iding not ice r equired by sub- ar t icle 16 ( c) ( iii) ( a) or ( b) , ret urn t he docum ent s t o t he present er at any t im e.

f. I f an issuing bank or a conf irm ing bank fails t o act in accordan ce w it h t he prov ision s of t his art icle, it shall

be precluded from claim ing t hat t he docum ent s do not const it ut e a com plying present at ion.

g. When an issuing bank refuses t o hon our or a confirm ing bank r ef uses t o honour or negot iat e an d has

giv en not ice t o t hat ef fect in accordan ce w it h t his art icle, it shall t hen be ent it led t o claim a refund, w it h int erest , of any reim bursem ent m ade.

U CP 6 0 0 - Ar t icle 1 7

Original Docum ent s and Copies

a . At least one original of each docu m ent st ipulat ed in t he credit m ust be present ed.

b. A bank shall t reat as an original any docu m ent bearin g an apparent ly original signat ure, m ark , st am p, or

label of t he issuer of t he docum ent , unless t he docum ent it self indicat es t hat it is not an original.

c. Unless a docum ent indicat es ot h erw ise, a bank w ill also accept a docum ent as original if it :

i. appears t o be w rit t en, t yped, perforat ed or st am ped b y t he docum ent issuer' s hand; or

ii. appears t o be on t he docum ent issuer's original st at ionery ; or

iii. st at es t hat it is or iginal, unless t he st at em ent appear s not t o apply t o t he docum ent present ed.

d. I f a credit requires present at ion of copies of docu m ent s, present at ion of eit her originals or copies is

perm it t ed.

e . I f a credit requires pr esent at ion of m ult iple docum ent s by using t erm s su ch as " in duplicat e" , " in t w o f old"

or " in t w o copies" , t his w ill be sat isfied by t he present at ion of at least one original and t he rem aining num ber in copies, ex cept w hen t he docum ent it self indicat es ot herw ise.

U CP 6 0 0 - Ar t icle 1 8

Com m er cial I nv oice

a . A com m er cial inv oice:

i. m ust appear t o hav e been issued by t he beneficiary ( ex cept as pr ov ided in art icle 38) ;

ii. m ust be m ade out in t he nam e of t he applicant ( ex cept as provided in sub- ar t icle 38 ( g) ) ;

iii. m ust be m ade out in t he sam e curren cy as t he credit ; and

iv. need not be signed.

b. A nom inat ed bank act ing on it s nom inat ion, a confirm ing bank , if any , or t he issuing bank m ay accept a

com m ercial inv oice issued for an am ount in excess of t he am ount per m it t ed by t he cr edit , and it s decision w ill be binding upon all part ies, provided t he bank in quest ion has not honoured or negot iat ed for an am ou nt in ex cess of t hat perm it t ed by t he credit .

c. The descript ion of t he goods, serv ices or perfor m ance in a com m er cial inv oice m u st correspond w it h t hat

appearing in t he credit .

U CP 6 0 0 - Ar t icle 1 9

Transp ort Docum ent Cov eri ng at Least Tw o Different Modes of Tran sport

a . A t ransport docu m ent cov ering at least t w o differ ent m odes of t ransport ( m ult im odal or com bined

t r ansp ort docum ent ) , how ev er nam ed, m ust appear t o:

- t he carrier or a nam ed agent for or on behalf of t he carrier, or - t he m ast er or a nam ed agent f or or on behalf of t he m ast er.

Any signat ure by t he carrier, m ast er or agent m ust be ident if ied as t hat of t he carrier, m ast er or agent . Any signat ure by an agent m ust indicat e w het h er t he agent has signed for or on behalf of t he carrier or for or on behalf of t he m ast er.

ii. indicat e t hat t he goods hav e been dispat ched, t ak en i n charge or shipped on board at t he place st at ed in

t he credit , by :

- pre- print ed w ording, or

- a st am p or not at ion indicat ing t he dat e on w hich t he goods hav e been dispat ched, t aken in charge or shipped on board.

The dat e of issuance of t he t ransp or t docum ent w ill be deem ed t o be t he dat e of dispat ch, t aking in charge or shipped on board, and t he dat e of shipm ent . How ev er , if t he t ransport docum ent indicat es, by st am p or not at ion, a dat e of dispat ch, t ak ing in charge or shipped on board, t his dat e w ill be deem ed t o be t he dat e of shipm ent .

iii. indicat e t he place of dispat ch, t aking in charge or shi pm ent and t he place of final dest inat ion st at ed in

t he credit , ev en if:

a . t he t ransport docu m ent st at es, in addit ion, a different place of dispat ch, t ak ing in charge or shipm ent or

place of final dest inat ion, or

b. t he t ransport docum ent cont ains t he indicat ion " int en ded" or sim ilar qualif icat ion in relat ion t o t he v essel,

port of loading or port of discharge.

iv. be t he sole original t ransp or t docum ent or, if issued in m ore t han one original, be t he full set as indicat ed

on t he t ransport docum ent .

v. cont ain t erm s and con dit ions of carriage or m ak e reference t o an ot her sour ce cont aining t he t er m s and

condit ions of carriage ( short f orm or blank back t ran spor t docum ent ) . Cont ent s of t erm s and condit ions of carriage w ill not be ex am ined.

vi. cont ain no indicat ion t hat it is subj ect t o a chart er part y .

b. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e m ean s of convey ance and

reloading t o anot her m eans of convey ance ( w het her or not in different m odes of t r ansport ) during t he carriage from t he place of dispat ch, t ak ing in charge or shipm ent t o t he place of final dest inat ion st at ed in t he credit .

c.

i. A t ransport docum ent m ay indicat e t hat t he good s w ill or m ay be t r anshipped provided t hat t he ent ire

carriage is cov ered by one an d t he sam e t ran sport docum ent .

ii. A t ransport docum ent indicat ing t hat t ran shipm ent w ill or m ay t ak e place is accept able, ev en if t he credit

prohibit s t r an shipm ent .

U CP 6 0 0 - Ar t icle 2 0

Bill of Lading

a .A bill of lading, how ever nam ed, m ust appear t o:

- t he carrier or a nam ed agent for or on behalf of t he carrier, or - t he m ast er or a nam ed agent f or or on behalf of t he m ast er.

Any signat ure by t he carrier, m ast er or agent m ust be ident if ied as t hat of t he carrier, m ast er or agent . Any signat ure by an agent m ust indicat e w het h er t he agent has signed for or on behalf of t he carrier or for or on behalf of t he m ast er.

ii. indicat e t hat t he goods hav e been shipped on board a nam ed v essel at t he port of loading st at ed in t he

credit by :

- pre- print ed w ording, or

- an on board not at ion indicat ing t he dat e on w hich t he goods h ave been shipped on board.

The dat e of issuance of t he bill of lading will be deem ed to be t he dat e of shipm ent unless t he bill of lading cont ains an on board not at ion indicat ing t he dat e of ship m ent , in w hich case t he dat e st at ed in t he on boar d not at ion w ill be deem ed t o be t he dat e of shipm ent .

I f t he bill of lading cont ains t he indicat ion " int ended v essel" or sim ilar qualificat ion in relat ion t o t he nam e of t he v essel, an on boar d n ot at ion indicat ing t he dat e of shipm ent and t he nam e of t he act u al v essel is required.

iii. indicat e shipm ent from t he por t of loading t o t he port of discharge st at ed in t he credit .

I f t he bill of lading does not indicat e t he port of loading st at ed in t he credit as t he port of loading, or if it cont ains t he indicat ion " int ended" or sim ilar qualificat ion in relat ion t o t he port of loading, an on board not at ion indicat ing t he port of loading as st at ed in t he credit , t he dat e of shipm ent and t he nam e of t he v essel is required. This provision applies ev en w hen loading on board or shipm ent on a nam ed v essel is indicat ed by pre- print ed w ording on t he bill of lading.

iv. be t he sole original bill of lading or, if issued in m or e t han one original, be t he f ull set as indicat ed on t he

bill of lading.

v. cont ain t erm s and con dit ions of carriage or m ak e reference t o an ot her sour ce cont aining t he t erm s and

condit ions of carriage ( short f orm or blank back bill of lading) . Cont ent s of t erm s and condit ion s of carriage w ill not be ex am ined.

vi. cont ain no indicat ion t hat it is subj ect t o a chart er part y .

b. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e v essel and reloading t o an ot her

v essel during t he carriage from t he port of loading t o t he port of discharge st at ed in t he credit .

c.

i. A bill of lading m ay indicat e t hat t he goods w ill or m ay be t ranshipped provided t hat t he ent ire carriage is

cov er ed by one and t he sam e bill of lading.

ii. A bill of lading indicat ing t hat t ranshipm ent w ill or m ay t ake place is accept able, ev en if t he cr edit

prohibit s t r an shipm ent , if t he goods have been shipped in a cont ainer, t railer or LASH barge as ev idenced by t he bill of lading.

d. Clau ses in a bill of lading st at ing t hat t he carrier reserv es t he right t o t r anship w ill be disregar ded.

U CP 6 0 0 - Ar t icle 2 1

Non- Negot iable Sea Way bill

a . A non- negot iable sea w ay bill, how ever nam ed, m ust appear t o:

- t he carrier or a nam ed agent for or on behalf of t he carrier, or - t he m ast er or a nam ed agent f or or on behalf of t he m ast er.

Any signat ure by t he carrier, m ast er or agent m ust be ident if ied as t hat of t he carrier, m ast er or agent . Any signat ure by an agent m ust indicat e w het h er t he agent has signed for or on behalf of t he carrier or for or on behalf of t he m ast er.

ii. indicat e t hat t he goods hav e been shipped on board a nam ed v essel at t he port of loading st at ed in t he

credit by :

- pre- print ed w ording, or

- an on board not at ion indicat ing t he dat e on w hich t he goods h ave been shipped on board.

The dat e of issuance of t he non- negot iable sea w ay bill w ill be deem ed t o be t he dat e of shipm ent unless t he non- negot iable sea w ay bill cont ains an on board not at i on indicat ing t he dat e of shipm ent , in w hich case t he dat e st at ed in t he on board not at ion w ill be deem ed t o be t he dat e of shipm ent .

I f t he non- negot iable sea w aybill cont ain s t he indicat ion " int ended vessel" or sim ilar qualif icat ion in relat ion t o t he nam e of t he vessel, an on board not at ion indicat ing t he dat e of shipm ent and t he nam e of t he act ual v essel is required.

iii. indicat e shipm ent from t he por t of loading t o t he port of discharge st at ed in t he credit .

I f t he non- negot iable sea w aybill does not indicat e t he port of loading st at ed in t he credit as t he port of loading, or if it cont ains t he indicat ion " int ended" or sim ilar qualificat ion in relat ion t o t he por t of loading, an on board n ot at ion indicat ing t he port of loading as st at ed in t he credit , t he dat e of shipm ent and t he nam e of t he v essel is r equired. This provision applies ev en w hen loading on board or shipm ent on a nam ed v essel is indicat ed by pre- print ed w ording on t he non- negot iabl e sea w ay bill.

iv. be t he sole original non- negot iable sea w ay bill or, if issued in m ore t han on e original, be t he full set as

indicat ed on t he non- negot iable sea w ay bill.

v. cont ain t erm s and con dit ions of carriage or m ak e reference t o an ot her sour ce cont aining t he t er m s and

condit ions of carriage ( short f orm or blank back non- neg ot iable sea w ay bill) . Cont ent s of t erm s and condit ions of carriage w ill not be ex am ined.

vi. cont ain no indicat ion t hat it is subj ect t o a chart er part y .

b. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e vessel and reloading t o an ot her

v essel during t he carriage from t he port of loading t o t he port of discharge st at ed in t he credit .

c.

i. A non- negot iable sea w aybill m ay indicat e t hat t he goods w ill or m ay be t ranshipped prov ided t hat t he

ent ire carriage is cov ered by one and t he sam e non- negot iable sea w ay bill.

ii. A non- negot iable sea w ay bill indicat ing t hat t ranshipm ent w ill or m ay t ak e place is accept able, ev en if t he

credit prohibit s t ranshipm ent , if t he goods hav e been shipped in a cont ainer, t railer or LASH barge as ev idenced by t he non- negot iable sea w ay bill.

d. Clau ses in a non- negot iable sea w aybill st at ing t hat t he carrier r eserv es t he r ight t o t ranship w ill be

disregarded.

U CP 6 0 0 - Ar t icle 2 2

Chart er Part y Bill of Lading

a . A bill of lading, how ev er nam ed, cont aining an indicat ion t hat it is subj ect t o a chart er part y ( ch ar t er

i. be signed by:

- t he m ast er or a nam ed agent f or or on behalf of t he m ast er, or - t he ow ner or a nam ed agent f or or on behalf of t he ow ner , or - t he chart erer or a nam ed agent for or on behalf of t he chart erer.

Any signat ure by t he m ast er, ow ner, ch ar t er er or agent m ust be ident ified as t hat of t he m ast er, ow ner, chart erer or agent .

Any signat ure by an agent m ust indicat e w het h er t he agent has signed for or on behalf of t he m ast er, ow ner or chart er er .

An agent signing for or on behalf of t he ow ner or char t er er m ust indicat e t he nam e of t he ow ner or chart erer .

ii. indicat e t hat t he goods hav e been shipped on board a nam ed v essel at t he port of loading st at ed in t he

credit by :

- pre- print ed w ording, or

- an on board not at ion indicat ing t he dat e on w hich t he goods h ave been shipped on board.

The dat e of issuance of t he chart er part y bill of lading w ill be deem ed t o be t he dat e of shipm ent unless t he chart er part y bill of lading cont ain s an on board not at ion indicat ing t he dat e of shipm ent , in w hich case t he dat e st at ed in t he on board not at ion w ill be deem ed t o be t he dat e of shipm ent .

iii. indicat e shipm ent from t he por t of loading t o t he port of discharge st at ed in t he credit . The port of

dischar ge m ay also be show n as a range of port s or a geographical ar ea, as st at ed in t he credit .

iv. be t he sole original chart er part y bill of lading or, if issued in m ore t han one original, be t he full set as

indicat ed on t he ch art er part y bill of lading.

b. A bank w ill not ex am ine chart er part y cont ract s, even if t hey are required t o be present ed by t he t erm s of

t he credit .

U CP 6 0 0 - Ar t icle 2 3

Air Tran sport Docum ent

a . An air t r ansport docu m ent , how ev er nam ed, m u st app ear t o:

i. indicat e t he nam e of t he carrier and be signed by :

- t he carrier, or

- a nam ed agent for or on behalf of t he carrier .

Any signat ure by t he carrier or agent m ust be ident if ied as t hat of t he carrier or agent .

Any signat ure by an agent m ust indicat e t hat t he agent has signed for or on beh alf of t he carrier.

ii.indicat e t hat t he good s hav e been accept ed for carriag e.

iii. indicat e t he dat e of issuance. This dat e w ill be deem ed t o be t he dat e of shipm ent unless t he air

t r ansp ort docum ent cont ains a specif ic not at ion of t he act ual dat e of shipm ent , in w hich case t he dat e st at ed in t he not at ion w ill be deem ed t o be t he dat e of shipm ent .

Any ot her inform at ion appearing on t he air t ransport docum ent relat iv e t o t he flight num ber and dat e w ill not be con sidered in det erm ining t he dat e of shipm ent .

iv. indicat e t he airport of depart ure and t he airport of dest inat ion st at ed in t he credit .

v. be t he original for consignor or shipper, ev en if t he credit st ipulat es a full set of originals.

vi. cont ain t erm s and condit ions of carriage or m ak e reference t o an ot her sour ce cont aining t he t erm s and

condit ions of carriage. Cont ent s of t erm s and condit ions of car riage w ill not be ex am ined.

b. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e aircraft and reloading t o anot her

air cr af t during t he carriage from t he airpor t of depart ure t o t he airport of dest inat ion st at ed in t he credit .

c.

i. An air t ransport docum ent m ay indicat e t hat t he goods w ill or m ay be t ranshipped, prov ided t hat t he

ent ire carriage is cov ered by one and t he sam e air t ranspor t docu m ent .

ii. An air t ransport docum ent indicat ing t hat t r an shipm ent w ill or m ay t ake place is accept able, even if t he

credit prohibit s t ranshipm ent .

U CP 6 0 0 - Ar t icle 2 4

Road, Rail or I nland Wat erw ay Transp ort Docum ent s

a . A road, rail or inland w at er w ay t ransport docum ent , h ow ev er nam ed, m ust appear t o:

i. indicat e t he nam e of t he carrier and:

- be signed by t he carrier or a nam ed agent for or on behalf of t he carrier, or

- indicat e receipt of t he goods by signat ure, st am p or n ot at ion by t he carrier or a nam ed agent for or on behalf of t he carrier.

Any signat ure, st am p or not at ion of receipt of t he goods by t he carr ier or agent m ust be ident ified as t hat of t he carrier or agent .

Any signat ure, st am p or not at ion of receipt of t he goods by t he agent m ust indicat e t hat t he agent has signed or act ed for or on behalf of t he car rier.

I f a rail t ransport docum ent does not ident ify t he carrier, any signat ure or st am p of t he railw ay com pany w ill be accept ed as ev idence of t he docum ent being signed by t he carrier.

ii. indicat e t he dat e of shipm ent or t he dat e t he goods h ave been receiv ed for shipm ent , dispat ch or carriage

at t he place st at ed in t he credit . Unless t he t ransport docum ent cont ain s a dat ed recept ion st am p, an indicat ion of t he dat e of receipt or a dat e of shipm ent , t he dat e of issuance of t he t ransport docu m ent w ill be deem ed t o be t he dat e of shipm ent .

iii. indicat e t he place of shipm ent and t he place of dest inat ion st at ed in t he credit .

b.

i. A road t r ansport docu m ent m u st appear t o be t he original for consignor or shipper or bear n o m ark ing

indicat ing for w hom t he docum ent has been prepared.

ii. A rail t ransport docum ent m ark ed " d uplicat e" w ill be accept ed as an original.

iii. A rail or inland w at erw ay t ransport docum ent w ill be accept ed as an original w het her m arked as an

original or not .

c. I n t he ab sence of an indicat ion on t he t ran sport docu m ent as t o t he num ber of originals issued, t he

d. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e m ean s of convey ance and

reloading t o anot her m eans of convey ance, w it hin t he sam e m ode of t ransp ort , during t he carr iage f rom t he place of shipm ent , dispat ch or carriage t o t he place of dest inat ion st at ed in t he credit .

e .

i. A road, r ail or inland w at erw ay t ransport docu m ent m ay indicat e t hat t he goods w ill or m ay be

t r anshipped prov ided t hat t he ent ire carr iage is covered by one and t he sam e t ran sport docu m ent .

ii. A road, rail or inland w at er w ay t ransp or t docu m ent in dicat ing t hat t ranshipm ent w ill or m ay t ak e place is

accept able, ev en if t he credit prohibit s t ranshipm ent .

U CP 6 0 0 - Ar t icle 2 5

Courier Receipt , Post Receipt or Cert ificat e of Post ing

a . A cour ier receipt , how ever nam ed, ev idencing receipt of goods for t ransp ort , m ust appear t o:

i. indicat e t he nam e of t he cour ier service and be st am p ed or signed by t he nam ed courier serv ice at t he

place from w hich t he credit st at es t he goods are t o be sh ipped; and

ii. indicat e a dat e of pick - up or of receipt or w ording t o this effect . This dat e w ill be deem ed t o be t he dat e

of shipm ent .

b. A requirem ent t hat courier ch arges are t o be paid or prepaid m ay be sat isfied by a t ransport docum ent

issued by a courier serv ice ev idencing t hat courier char g es are f or t he account of a part y ot her t han t he con signee.

c. A post receipt or cert if icat e of post ing, how ev er nam ed, evidencing receipt of goods for t r ansport , m ust

appear t o be st am ped or signed and dat ed at t he place from w hich t he credit st at es t he goods are t o be shipped. This dat e w ill be deem ed t o be t he dat e of shipm ent .

U CP 6 0 0 - Ar t icle 2 6

On Deck" , " Shipper's Load and Cou nt " , " Said by Shipper t o Cont ain" and Charges Addit ional t o Freight

a . A t ransport docu m ent m u st not indicat e t hat t he goods are or w ill be loaded on deck . A clause on a

t r ansp ort docum ent st at ing t hat t he good s m ay be loaded on deck is accept able.

b. A t ransport docum ent bearing a clau se su ch as " shipp er' s load and count " and " said by shipper t o

cont ain" is accept able.

c. A t r ansport docu m ent m ay bear a ref erence, by st am p or ot herw ise, t o charges addit ional t o t he f reight .

U CP 6 0 0 - Ar t icle 2 7

Clean Tran sport Docum ent

A bank w ill only accept a clean t ransp ort docum ent . A clean t ransp or t docum ent is one bearing no clause or not at ion ex pressly declar ing a defect iv e condit ion of t he goods or t heir pack aging. The w ord " clean" need not appear on a t ranspor t docu m ent , even if a credit has a requirem ent for t hat t ransport docum ent t o be " clean on board" .

U CP 6 0 0 - Ar t icle 2 8

I n sur ance Docum ent and Cov erage

a . An insurance docu m ent , such as an insurance policy, an insurance cert ificat e or a declarat ion under an

open cov er , m ust appear t o be issued and signed by an insur an ce com pany, an underw rit er or t heir agent s or t heir prox ies.

Any signat ure by an agent or prox y m ust indicat e w het h er t he agent or prox y has signed for or on behalf of t he insurance com pany or underw rit er.

b. When t he insur ance docum ent indicat es t hat it has been issued in m ore t han one original, all originals

m ust be present ed.

c. Cov er not es w ill not be accept ed.

d. An insur ance policy is accept able in lieu of an insuran ce cert ificat e or a declarat ion under an open cover.

e . The dat e of t he insurance docum ent m ust be no lat er t han t he dat e of shipm ent , unless it appears f rom

t he insurance docu m ent t hat t he cov er is eff ect iv e from a dat e not lat er t han t he dat e of shipm ent .

f.

i.The insurance docum ent m ust indicat e t he am ount of insur an ce cov erage and be in t he sam e currency as

t he credit .

ii. A requirem ent in t he credit for insurance coverage t o be for a percent age of t he v alue of t he goods, of t he

inv oice v alue or sim ilar is deem ed t o be t he m inim um am ou nt of cov erage requir ed.

I f t her e is no indicat ion in t he credit of t he insurance cov erage required, t he am ount of insurance cov erage m ust be at least 110% of t he CI F or CI P v alue of t he goods.

When t he CI F or CI P value cannot be det erm ined from t h e docum ent s, t he am ou nt of insuran ce coverage m ust be calculat ed on t he basis of t he am ount for w hich honour or negot iat ion is request ed or t he gross v alue of t he goods as show n on t he invoice, w hichev er is great er.

iii. The insur an ce docum ent m ust indicat e t hat r isk s ar e cov ered at least bet w een t he place of t ak ing in

charge or shipm ent and t he place of discharge or final dest inat ion as st at ed in t he credit .

g. A credit should st at e t he t ype of insurance required and, if any , t he addit ional risk s t o be cov ered. An

insurance docum ent w ill be accept ed w it hout regard t o any risks t hat are not covered if t he cr edit uses im precise t erm s such as " usual risks" or " cust om ary risk s" .

h . When a credit requires insurance against " all risk s" and an insur an ce docum ent is present ed cont aining

any " all r isk s" not at ion or clause, w het her or not bearing t he heading " all risks" , t he insuran ce docum ent w ill be accept ed w it hout regard t o any risk s st at ed t o be ex cluded.

i. An insuran ce docum ent m ay cont ain reference t o any exclusion clause.

j . An insurance docum ent m ay indicat e t hat t he cov er is subj ect t o a franchise or ex cess ( dedu ct ible) .

U CP 6 0 0 - Ar t icle 2 9

a . I f t he expiry dat e of a credit or t he last day for present at ion f alls on a day w hen t he bank t o w hich

present at i on is t o be m ade is closed for reasons ot her t han t hose referred t o in art icle 36, t he ex piry dat e or t he last day for present at ion, as t he case m ay be, w ill be ex t ended t o t he fir st follow ing banking day .

b. I f present at ion is m ade on t he first follow ing bank ing day , a nom inat ed bank m ust prov ide t he issuing

bank or confirm ing bank w it h a st at em ent on it s covering schedule t hat t he pr esent at ion w as m ade w it hin t he t im e lim it s ex t ended in accordance w it h sub- art icle 29 ( a) .

c. The lat est dat e for shipm ent w ill not be ex t ended as a result of sub- art icle 29 ( a) .

U CP 6 0 0 - Ar t icle 3 0

Toler ance in Credit Am ount , Quant it y and Unit Prices

a . The w ords " about " or " appr ox im at ely " used in connect ion w it h t he am ou nt of t he credit or t he quant it y or

t he unit price st at ed in t he credit are t o be const rued as allow ing a t olerance not t o ex ceed 10% m ore or 10% less t han t he am ount , t he quant it y or t he unit price t o w hich t hey r efer.

d. For t he purpose of t his art icle, t ranshipm ent m eans u nloading fr om on e m ean s of convey ance and reloading t o anot her m eans of convey ance, w it hin t he sam e m ode of t ransp ort , during t he carr iage f rom t he place of shipm ent , dispat ch or carriage t o t he place of dest inat ion st at ed in t he credit .

e .

i. A road, r ail or inland w at erw ay t ransport docu m ent m ay indicat e t hat t he goods w ill or m ay be t r anshipped prov ided t hat t he ent ire carr iage is covered by one and t he sam e t ran sport docu m ent .

ii. A road, rail or inland w at er w ay t ransp or t docu m ent in dicat ing t hat t ranshipm ent w ill or m ay t ak e place is accept able, ev en if t he credit prohibit s t ranshipm ent .

U CP 6 0 0 - Ar t icle 2 5

Courier Receipt , Post Receipt or Cert ificat e of Post ing

a . A cour ier receipt , how ever nam ed, ev idencing receipt of goods for t ransp ort , m ust appear t o:

i. indicat e t he nam e of t he cour ier service and be st am p ed or signed by t he nam ed courier serv ice at t he place from w hich t he credit st at es t he goods are t o be sh ipped; and

ii. indicat e a dat e of pick - up or of receipt or w ording t o this effect . This dat e w ill be deem ed t o be t he dat e of shipm ent .

b. A requirem ent t hat courier ch arges are t o be paid or prepaid m ay be sat isfied by a t ransport docum ent issued by a courier serv ice ev idencing t hat courier char g es are f or t he account of a part y ot her t han t he con signee.

c. A post receipt or cert if icat e of post ing, how ev er nam ed, evidencing receipt of goods for t r ansport , m ust appear t o be st am ped or signed and dat ed at t he place from w hich t he credit st at es t he goods are t o be shipped. This dat e w ill be deem ed t o be t he dat e of shipm ent .

U CP 6 0 0 - Ar t icle 2 6

On Deck" , " Shipper's Load and Cou nt " , " Said by Shipper t o Cont ain" and Charges Addit ional t o Freight a . A t ransport docu m ent m u st not indicat e t hat t he goods are or w ill be loaded on deck . A clause on a t r ansp ort docum ent st at ing t hat t he good s m ay be loaded on deck is accept able.

b. A t ransport docum ent bearing a clau se su ch as " shipp er' s load and count " and " said by shipper t o cont ain" is accept able.

c. A t r ansport docu m ent m ay bear a ref erence, by st am p or ot herw ise, t o charges addit ional t o t he f reight .

U CP 6 0 0 - Ar t icle 2 7

Clean Tran sport Docum ent

A bank w ill only accept a clean t ransp ort docum ent . A clean t ransp or t docum ent is one bearing no clause or not at ion ex pressly declar ing a defect iv e condit ion of t he goods or t heir pack aging. The w ord " clean" need not appear on a t ranspor t docu m ent , even if a credit has a requirem ent for t hat t ransport docum ent t o be " clean on board" .

U CP 6 0 0 - Ar t icle 2 8

I n sur ance Docum ent and Cov erage

a . An insurance docu m ent , such as an insurance policy, an insurance cert ificat e or a declarat ion under an open cov er , m ust appear t o be issued and signed by an insur an ce com pany, an underw rit er or t heir agent s or t heir prox ies.

Any signat ure by an agent or prox y m ust indicat e w het h er t he agent or prox y has signed for or on behalf of t he insurance com pany or underw rit er.

b. When t he insur ance docum ent indicat es t hat it has been issued in m ore t han one original, all originals m ust be present ed.

c. Cov er not es w ill not be accept ed.

d. An insur ance policy is accept able in lieu of an insuran ce cert ificat e or a declarat ion under an open cover. e . The dat e of t he insurance docum ent m ust be no lat er t han t he dat e of shipm ent , unless it appears f rom t he insurance docu m ent t hat t he cov er is eff ect iv e from a dat e not lat er t han t he dat e of shipm ent . f.

i.The insurance docum ent m ust indicat e t he am ount of insur an ce cov erage and be in t he sam e currency as t he credit .

ii. A requirem ent in t he credit for insurance coverage t o be for a percent age of t he v alue of t he goods, of t he inv oice v alue or sim ilar is deem ed t o be t he m inim um am ou nt of cov erage requir ed.

I f t her e is no indicat ion in t he credit of t he insurance cov erage required, t he am ount of insurance cov erage m ust be at least 110% of t he CI F or CI P v alue of t he goods.

When t he CI F or CI P value cannot be det erm ined from t h e docum ent s, t he am ou nt of insuran ce coverage m ust be calculat ed on t he basis of t he am ount for w hich honour or negot iat ion is request ed or t he gross v alue of t he goods as show n on t he invoice, w hichev er is great er.

iii. The insur an ce docum ent m ust indicat e t hat r isk s ar e cov ered at least bet w een t he place of t ak ing in charge or shipm ent and t he place of discharge or final dest inat ion as st at ed in t he credit .

g. A credit should st at e t he t ype of insurance required and, if any , t he addit ional risk s t o be cov ered. An insurance docum ent w ill be accept ed w it hout regard t o any risks t hat are not covered if t he cr edit uses im precise t erm s such as " usual risks" or " cust om ary risk s" .

h . When a credit requires insurance against " all risk s" and an insur an ce docum ent is present ed cont aining any " all r isk s" not at ion or clause, w het her or not bearing t he heading " all risks" , t he insuran ce docum ent w ill be accept ed w it hout regard t o any risk s st at ed t o be ex cluded.

i. An insuran ce docum ent m ay cont ain reference t o any exclusion clause.

j . An insurance docum ent m ay indicat e t hat t he cov er is subj ect t o a franchise or ex cess ( dedu ct ible) .

U CP 6 0 0 - Ar t icle 2 9

a . I f t he expiry dat e of a credit or t he last day for present at ion f alls on a day w hen t he bank t o w hich present at i on is t o be m ade is closed for reasons ot her t han t hose referred t o in art icle 36, t he ex piry dat e or t he last day for present at ion, as t he case m ay be, w ill be ex t ended t o t he fir st follow ing banking day . b. I f present at ion is m ade on t he first follow ing bank ing day , a nom inat ed bank m ust prov ide t he issuing bank or confirm ing bank w it h a st at em ent on it s covering schedule t hat t he pr esent at ion w as m ade w it hin t he t im e lim it s ex t ended in accordance w it h sub- art icle 29 ( a) .

c. The lat est dat e for shipm ent w ill not be ex t ended as a result of sub- art icle 29 ( a) .

U CP 6 0 0 - Ar t icle 3 0

Toler ance in Credit Am ount , Quant it y and Unit Prices

a . The w ords " about " or " appr ox im at ely " used in connect ion w it h t he am ou nt of t he credit or t he quant it y or t he unit price st at ed in t he credit are t o be const rued as allow ing a t olerance not t o ex ceed 10% m ore or 10% less t han t he am ount , t he quant it y or t he unit price t o w hich t hey r efer.

b. A t olerance not t o ex ceed 5% m or e or 5% less t han t he quant it y of t he goods is allow ed, provided t he credit does not st at e t he qu ant it y in t erm s of a st ipulat ed num ber of packing unit s or individual it em s and t he t ot al am ou nt of t he draw ings does not ex ceed t he am ou nt of t he credit .

c. Ev en w hen part ial shipm ent s are not allow ed, a t olerance not t o ex ceed 5% less t han t he am ount of t he credit is allow ed, prov ided t hat t he quant it y of t he goods, if st at ed in t he credit , is shipped in full and a unit price, if st at ed in t he credit , is not reduced or t hat sub - art icle 30 ( b) is not applicable. This t oler an ce does not apply w hen t he credit st ipulat es a specific t olerance or uses t he ex pr essions referred t o in sub- art icle 30 ( a) .

U CP 6 0 0 - Ar t icle 3 1

Part ial Draw ings or Shipm ent s

a . Part ial draw ings or shipm ent s are allow ed.

b. A present at ion consist ing of m ore t han one set of t ransport docum ent s ev iden cing shipm ent com m en cing on t he sam e m eans of conv ey an ce and for t he sam e j our ney, prov ided t hey indicat e t he sam e dest inat ion, w ill not be r egarded as covering a part ial shipm ent , ev en if t hey indicat e different dat es of shipm ent or dif ferent port s of loading, places of t ak ing in charge or dispat ch. I f t he present at ion consist s of m ore t h an one set of t ransp ort docum ent s, t he lat est dat e of shipm ent as ev idenced on any of t he set s of t ransport docum ent s w ill be regarded as t he dat e of shipm ent .

A present at ion consist ing of one or m ore set s of t ranspor t docum ent s ev idencing shipm ent on m or e t han one m eans of conv ey ance w it hin t he sam e m ode of t ranspor t w ill be regarded as covering a par t ial shipm ent , even if t he m eans of conv ey ance leav e on t he sam e day for t he sam e dest in at ion.

c. A present at ion consist ing of m ore t han one courier r eceipt , post receipt or cert ificat e of post ing w ill not be regarded as a part ial shipm ent if t he courier receipt s, post receipt s or cert ificat es of post ing appear t o have been st am ped or signed by t he sam e courier or post al serv ice at t he sam e place and dat e and for t he sam e dest inat ion.

U CP 6 0 0 - Ar t icle 3 2

I n st alm ent Draw ings or Ship m ent s

I f a draw ing or shipm ent by inst alm ent s w it hin given periods is st ipulat ed in t he credit and any inst alm ent is not draw n or shipped w it hin t he period allow ed for t hat inst alm ent , t he credit ceases t o be av ailable f or t hat and any subsequent inst alm ent .

U CP 6 0 0 - Ar t icle 3 3

Hours of Present at ion

A bank has no obligat ion t o accept a present at ion out sid e of it s bank ing hours.

U CP 6 0 0 - Ar t icle 3 4

Disclaim er on Effect iv eness of Docum ent s

A bank assum es n o liabilit y or r esponsibilit y for t he form , sufficiency , accuracy , genuineness, falsif icat ion or legal eff ect of any docum ent , or f or t he general or part icular condit ions st ipulat ed in a docum ent or

superim posed t her eon; nor does it assum e any liabilit y or responsibilit y for t he descript ion, quant it y , w eight , qualit y , condit ion, packing, deliv ery , value or ex ist ence of t he goods, serv ices or ot her perf or m an ce

represent ed by any docum ent , or for t he good fait h or act s or om issi on s, solv ency, perform an ce or st andin g of t he consignor, t he carrier, t he forw arder, t he con signee or t he insurer of t he goods or any ot her person.

U CP 6 0 0 - Ar t icle 3 5

A bank assum es n o liabilit y or r esponsibilit y for t he consequences arising out of delay, loss in t ransit , m ut ilat ion or ot her errors arising in t he t ransm ission of any m essages or deliv er y of let t ers or docum ent s, w hen such m essages, let t ers or docu m ent s are t ransm it t ed or sent according t o t he requirem ent s st at ed in t he credit , or w hen t he bank m ay hav e t aken t he init iat iv e in t he choice of t he deliv ery serv ice in t he absen ce of such inst r uct ions in t he credit .

I f a nom inat ed bank det erm ines t hat a present at ion is com ply ing and forw ards t he docum ent s t o t he issuing bank or confirm ing bank , w het her or not t he nom inat ed bank has h onoured or neg ot iat ed, an issuing bank or confirm ing bank m ust h onour or negot iat e, or reim bur se t hat nom inat ed bank , ev en w hen t he docum ent s have been lost in t ransit bet w een t he nom inat ed bank an d t he issuing bank or confirm ing bank, or bet w een t he conf irm ing bank and t he issuing bank .

A bank assum es n o liabilit y or r esponsibilit y for errors in t ranslat ion or int erpret at ion of t echnical t erm s and m ay t ransm it credit t erm s w it hout t ranslat ing t hem .

U CP 6 0 0 - Ar t icle 3 6

Force Maj eure

A bank assum es n o liabilit y or r esponsibilit y for t he consequences arising out of t he int errupt ion of it s business by Act s of God, riot s, civ il com m ot ions, insurrect ions, w ars, act s of t errorism , or by any st rik es or lock out s or any ot her cau ses bey ond it s cont r ol.

A bank w ill not , upon resum pt ion of it s business, honour or negot iat e under a credit t hat ex pired during such int errupt ion of it s business.

U CP 6 0 0 - Ar t icle 3 7

Disclaim er f or Act s of an I nst ru ct ed Part y

a . A bank ut ilizing t he services of anot her bank for t he purpose of giv ing effect t o t he inst ruct ions of t he applicant does so for t he account and at t he risk of t he applicant .

b. An issuing bank or adv isi ng bank assum es no liabilit y or responsibilit y should t he inst ru ct ions it t ransm it s t o anot her bank not be carried out , even if it has t ak en t he init iat ive in t he choice of t hat ot her bank . c. A bank inst ruct ing anot her bank t o perform serv ices is liable for any com m issions, fees, cost s or ex pen ses ( " charges" ) incurred by t hat bank in con nect ion w it h it s inst ru ct ion s.

I f a credit st at es t hat charges are for t he account of t he beneficiary and charges can not be collect ed or deduct ed from proceeds, t he issuing bank rem ains liable for paym ent of charges.

A credit or am endm ent should not st ipulat e t hat t he adv ising t o a beneficiary is condit ional upon t he receipt by t he adv ising bank or second advising bank of it s charges.

d. The applicant shall be bound by and liable t o indem nify a bank against all obligat ions and responsibilit ies im posed by foreign law s and usages.

U CP 6 0 0 - Ar t icle 3 8

Transf erable Credit s

a . A bank is under no obligat ion t o t ran sfer a credit ex cept t o t he ex t ent and in t he m anner ex pressly con sent ed t o by t hat bank.

b. For t he purpose of t his art icle:

Transf erable credit m ean s a credit t hat specif ically st at es it is " t ransf erable" . A t ransferable credit m ay be m ade av ailable in w hole or in part t o anot her beneficiary ( " second beneficiary " ) at t he request of t he beneficiary ( " first beneficiar y" ) .

Transf err ing bank m eans a nom inat ed bank t h at t ransfer s t he credit or, in a credit av ailable w it h any bank , a bank t hat is specif ically aut horized by t he issuing bank t o t ransfer and t hat t ran sfers t he credit . An issuing bank m ay be a t ransferring bank .

Transf err ed credit m eans a credit t hat has been m ad e av ailable by t he t ransfer ring bank t o a second beneficiary .

c. Unless ot herw ise agreed at t he t im e of t ransfer, all char ges ( su ch as com m issions, fees, cost s or ex penses) incurr ed in r espect of a t ransfer m ust be paid by t he first beneficiary .

d. A credit m ay be t ransferred in part t o m ore t han one second beneficiary prov ided part ial dr aw ings or shipm ent s are allow ed.

A t ransferred credit can not be t ransferred at t he request of a second beneficiar y t o any subsequent beneficiary . The f irst benef iciary is not consider ed t o be a subseq uent beneficiary.

e . Any request for t ransfer m u st indicat e if and under w hat condit ions am en dm ent s m ay be advised t o t he second beneficiary. The t r ansferred credit m ust clearly indicat e t hose condit ions.

f. I f a credit is t ransferred t o m or e t han one second beneficiary, rej ect ion of an am endm ent by one or m ore second beneficiary does n ot inv alidat e t he accept ance by any ot her second beneficiary , w it h respect t o w hich t he t r an sferred credit w ill be am ended accordingly . For any second beneficiary t hat rej ect ed t he am end m ent , t he t ransf err ed credit w ill rem ain unam end ed.

g. The t ransferred credit m ust accurat ely r eflect t he t erm s and condit ions of t he credit , including confirm at i on, if any, w it h t he ex cept ion of:

- t he am ount of t he cr edit , - any unit price st at ed t herein, - t he ex piry dat e,

- t he period for present at ion, or

- t he lat est shipm ent dat e or giv en period for shipm ent , any or all of w hich m ay be reduced or curt ailed.

The percent age for w hich insurance cov er m ust be eff ect ed m ay be increased t o prov ide t he am ount of cov er st ipulat ed in t he credit or t hese art icles.

The nam e of t he first beneficiar y m ay be subst it ut ed f or t hat of t he applicant in t he credit .

I f t he nam e of t he applicant is specifically requir ed by t he credit t o appear in any docum ent ot her t han t he inv oice, such requirem ent m ust be reflect ed in t he t ransferred credit .

h . The first benef iciary has t he right t o subst it ut e it s ow n inv oice and draft , if any , for t hose of a second beneficiary for an am ount n ot in excess of t hat st ipulat ed in t he credit , and upon such subst it ut ion t he fir st beneficiary can draw under t he credit for t he difference, if any , bet w een it s inv oice and t he inv oice of a second beneficiary.

i. I f t he first benef iciary is t o pr esent it s ow n invoice and dr aft , if any , but f ails t o do so on first dem and, or if t he inv oices pr esent ed by t he fir st beneficiary creat e discrepancies t hat did not ex ist in t he present at ion m ade by t he second beneficiar y and t he first benef iciary fails t o correct t hem on first dem and, t he t r ansferring bank has t he right t o pr esent t he docum ent s as receiv ed f rom t he second beneficiary t o t he issuing bank , w it hout furt her responsibilit y t o t he first beneficiary .

j . The first beneficiary m ay, in it s request for t r ansfer, indicat e t hat honour or negot iat ion is t o be ef fect ed t o a second beneficiary at t he place t o w hich t he cr edit has been t r ansferred, up t o and including t he ex piry dat e of t he credit . This is w it hout prej udice t o t he r ight of t he first beneficiary in accordance w it h sub- art icle 38 ( h) .

k . Present at ion of docum ent s by or on behalf of a second beneficiary m ust be m ade t o t he t ransferring bank .

U CP 6 0 0 - Ar t icle 3 9

Assignm ent of Proceeds

The fact t hat a credit is not st at ed t o be t ransf erable shall not aff ect t he r ight of t he beneficiary t o assign any proceeds t o w hich it m ay be or m ay becom e ent it led under t he credit , in accordance w it h t he provisions of applicable law . This art icle relat es only t o t he assignm ent of proceeds and not t o t he assignm ent of t he right t o perform under t he credit .