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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.
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 favor 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 honor 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 honor a
complying presentation.
Honor means:
a. to pay at sight if the credit is available by sight payment.
b. to incur a deferred payment undertaking and pay
at maturity if the credit is available by deferred payment.
c. to accept a bill of exchange ("draft")
drawn by the beneficiary and pay at maturity if the credit is available by
acceptance.
Issuing bank means the bank that issues a credit at the request of an
applicant or on its own behalf.
Negotiation means the purchase by the nominated bank of drafts (drawn on a
bank other than the nominated bank) and/or documents under a complying
presentation, by advancing or agreeing to advance funds to the beneficiary on
or before the banking day on which reimbursement is due to the nominated
bank.
Nominated Bank means the bank with which the credit is available or any bank
in the case of a credit available with any bank.
Presentation means either the delivery of documents under a credit to the
issuing bank or nominated bank or the documents so delivered.
Presenter means a beneficiary, bank or other party that makes a presentation.
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
banks.
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.
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..
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 honor, 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.
Banks
deal with documents and not with goods, services or performance to which the
documents may relate.
Article 6. Availability,
Expiry Date and Place for Presentation
a. A credit must state the bank with which it is available or whether it is
available with any bank. A credit available with a nominated bank is also
available with the issuing bank.
b. A credit must state whether it is available by sight payment, deferred
payment, acceptance or negotiation.
c. A credit must not be issued available by a draft drawn on the applicant.
d.
i. A credit must state an expiry date for
presentation. An expiry date stated for honor 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.
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 honor 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 honor as of the time it issues the
credit.
c. An issuing bank undertakes to reimburse a nominated bank that has honored
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.
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. honor, 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 another 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 honor 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
honored or negotiated a complying presentation and forwarded the documents to
the confirming bank. Reimbursement for the amount of a complying presentation
under a credit available by acceptance or deferred payment is due at
maturity, whether or not another nominated bank prepaid or purchased before
maturity. A confirming bank's undertaking to reimburse another nominated bank
is independent of the confirming bank's undertaking to the beneficiary.
d. If a bank is authorized or requested by the issuing bank to confirm a
credit but is not prepared to do so, it must inform the issuing bank without
delay and may advise the credit without confirmation. .
Article 9.
Advising of Credits and Amendments
a.
A credit and any amendment may be advised to a beneficiary through an
advising bank. An advising bank that is not a confirming bank advises the
credit and any amendment without any undertaking to honor 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 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.
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
a.
An authenticated teletransmission of a credit or
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.
a.
Unless a nominated bank is the confirming bank, an authorization to honor or
negotiate does not impose any obligation on that nominated bank to honor 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
honor or negotiate, nor does it constitute honor or negotiation..
Article 13.
Bank-to-Bank Reimbursement Arrangements
，
a. If a
credit states that reimbursement is to be obtained 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.
a. A nominated bank acting on its
nomination, a confirming bank, if any, and the issuing bank must examine a
presentation to determine, on the basis of the documents alone, whether or
not the documents appear on their face to constitute a complying
presentation.
b. A nominated bank acting on its nomination, a
confirming bank, if any, and the issuing bank shall each have a maximum of
five banking days following the day of presentation to determine if a
presentation is complying. This period is not curtailed or otherwise affected
by the occurrence on or after the date of presentation of any expiry date or
last day for presentation.
c. A presentation including one or more original transport documents 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 fulfill 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 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.
a.
When an issuing bank determines that a presentation is complying, it must
honor.
b. When a confirming bank determines that a presentation is complying, it
must honor or negotiate and forward the documents to the issuing bank.
c. When a nominated bank determines that a presentation is complying and
honors 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 honor or negotiate.
b. When an issuing bank determines that a presentation does not comply, it
may in its sole judgement approach the applicant
for a waiver of the discrepancies. This does not, however, extend the period
mentioned in sub-article 14 (b).
c. When a nominated bank acting on its nomination, a
confirming bank, if any, or the issuing bank decides to refuse to honor or
negotiate, it must give a single notice to that effect to the presenter.
The notice must state:
i. that the bank is refusing to honor or negotiate;
and
ii. each discrepancy in respect of which the bank
refuses to honor or negotiate; and
iii.
a) that the bank is holding the documents pending further instructions from
the presenter; or
b) that the issuing bank is holding the documents until it receives a waiver
from the applicant and agrees to accept it, or receives further instructions
from the presenter prior to agreeing to accept a waiver; or
c) that the bank is returning the documents; or
d) that the bank is acting in accordance with instructions previously
received from the presenter.
d. The notice required in sub-article 16 (c) must be given by
telecommunication or, if that is not possible, by other expeditious means no
later than the close of the fifth banking day following the day of
presentation.
e. A nominated bank acting on its nomination, a confirming bank, if any, or
the issuing bank may, after providing notice required by sub-article 16 (c)
(iii) (a) or (b), return the documents to the presenter at any time.
f. If an issuing bank or a confirming bank fails to act in accordance with
the provisions of this article, it shall be precluded from claiming that the
documents do not constitute a complying presentation.
g. When an issuing bank refuses to honor or a confirming bank refuses to
honor or negotiate and has given notice to that effect in accordance with
this article, it shall then be entitled to claim a refund, with interest, of
any reimbursement made.
a.
At least one original of each document stipulated in the credit must be
presented.
b. A bank shall treat as an original any document bearing an apparently
original signature, mark, stamp, or label of the issuer of the document, unless the document itself indicates that it is
not an original.
c. Unless a document indicates otherwise, a bank will also accept a document
as original if it:
i. appears to be written, typed, perforated or
stamped by the document issuer's hand; or
ii. appears to be on the document issuer's original
stationery; or
iii. states that it is original, unless the
statement appears not to apply to the document presented.
d. If a credit requires presentation of copies of documents, presentation of
either originals or copies is permitted.
e. If a credit requires presentation of multiple documents by using terms
such as "in duplicate", "in two fold" or "in two
copies", this will be satisfied by the presentation of at least one
original and the remaining number in copies, except when the document itself
indicates otherwise. .
a.
A commercial invoice:
i. must appear to have been issued by the beneficiary
(except as provided in article 38);
ii. must be made out in the name of the applicant
(except as provided in sub-article 38 (g));
iii. must be made out in the same currency as the
credit; and
iv. need not be signed.
b. A nominated bank acting on its nomination, a confirming bank, if any, or
the issuing bank may accept a commercial invoice issued for an amount in
excess of the amount permitted by the credit, and its decision will be
binding upon all parties, provided the bank in question has not honored or
negotiated for an amount in excess of that permitted by the credit.
c. The description of the goods, services or performance in a commercial
invoice must correspond with that appearing in the credit
Article 19.
Transport Document Covering at Least Two Different Modes of Transport
a.
A transport document covering at least two different modes of transport
(multimodal or combined transport document), however named, must appear to:
i. indicate the name of the carrier and be signed
by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identified as that of
the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or
on behalf of the carrier or for or on behalf of the master.
ii. indicate that the goods have been dispatched,
taken in charge or shipped on board at the place stated in the credit, by:
- pre-printed wording, or
- a stamp or notation indicating the date on which the goods have been
dispatched, taken in charge or shipped on board.
The date of issuance of the transport document will be deemed to be the date
of dispatch, taking in charge or shipped on board, and the date of shipment.
However, if the transport document indicates, by stamp or notation, a date of
dispatch, taking in charge or shipped on board, this date will be deemed to
be the date of shipment.
iii. indicate the place of dispatch, taking in charge or shipment and the
place of final destination stated in the credit, even if:
a. the transport document states, in addition, a different place of dispatch,
taking in charge or shipment or place of final destination,
or
b. the transport document contains the indication "intended" or
similar qualification in relation to the vessel, port of loading or port of
discharge.
iv. be the sole original transport document or, if issued in more than one
original, be the full set as indicated on the transport document.
v. contain terms and conditions of carriage or make
reference to another source containing the terms and conditions of carriage
(short form or blank back transport document). Contents of terms and
conditions of carriage will not be examined.
vi. contain no indication that it is subject to a
charter party.
b. For the purpose of this article, transhipment
means unloading from one means of conveyance and reloading to another means
of conveyance (whether or not in different modes of transport) during the
carriage from the place of dispatch, taking in charge or shipment to the
place of final destination stated in the credit.
c.
i. A transport document may indicate that the goods
will or may be transhipped provided that the entire
carriage is covered by one and the same transport document.
ii. A transport document indicating that transhipment
will or may take place is acceptable, even if the credit prohibits transhipment. .
a.A bill of
lading, however named, must appear to:
i. indicate the name of the carrier and be signed
by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identified as that of
the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or
on behalf of the carrier or for or on behalf of the master.
ii. indicate that the goods have been shipped on board a named vessel at the
port of loading stated in the credit by:
- pre-printed wording, or
- an on board notation indicating the date on which
the goods have been shipped on board.
The date of issuance of the bill of lading will be deemed to be the date of
shipment unless the bill of lading contains an on board notation indicating
the date of shipment, in which case the date stated in the on board notation
will be deemed to be the date of shipment.
If the bill of lading contains the indication "intended vessel" or
similar qualification in relation to the name of the vessel, an on board
notation indicating the date of shipment and the name of the actual vessel is
required.
iii. indicate shipment from the port of loading to
the port of discharge stated in the credit.
If the bill of lading does not indicate the port of loading stated in the
credit as the port of loading, or if it contains the indication
"intended" or similar qualification in relation to the port of
loading, an on board notation indicating the port of loading as stated in the
credit, the date of shipment and the name of the vessel is required. This
provision applies even when loading on board or shipment on a named vessel is
indicated by pre-printed wording on the bill of lading.
iv. be the sole original bill of lading or, if
issued in more than one original, be the full set as indicated on the bill of
lading.
v. contain terms and conditions of carriage or make
reference to another source containing the terms and conditions of carriage
(short form or blank back bill of lading). Contents of terms and conditions
of carriage will not be examined.
vi. contain no indication that it is subject to a
charter party.
b. For the purpose of this article, transhipment
means unloading from one vessel and reloading to another vessel during the
carriage from the port of loading to the port of discharge stated in the
credit.
c.
i. A bill of lading may indicate that the goods
will or may be transhipped provided that the entire
carriage is covered by one and the same bill of lading.
ii. A bill of lading indicating that transhipment
will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a
container, trailer or LASH barge as evidenced by the bill of lading.
d. Clauses in a bill of lading stating that the carrier reserves the right to
tranship will be disregarded
a.
A non-negotiable sea waybill, however named, must appear to:
i. indicate the name of
the carrier and be signed by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identified as that of
the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or
on behalf of the carrier or for or on behalf of the master.
ii. indicate that the goods have been shipped on board a named vessel at the
port of loading stated in the credit by:
- pre-printed wording, or
- an on board notation indicating the date on which
the goods have been shipped on board.
The date of issuance of the non-negotiable sea waybill will be deemed to be
the date of shipment unless the non-negotiable sea waybill contains an on
board notation indicating the date of shipment, in which case the date stated
in the on board notation will be deemed to be the date of shipment.
If the non-negotiable sea waybill contains the indication "intended
vessel" or similar qualification in relation to the name of the vessel,
an on board notation indicating the date of shipment and the name of the
actual vessel is required.
iii. indicate shipment from the port of loading to
the port of discharge stated in the credit.
If the non-negotiable sea waybill does not indicate the port of loading
stated in the credit as the port of loading, or if it contains the indication
"intended" or similar qualification in relation to the port of
loading, an on board notation indicating the port of loading as stated in the
credit, the date of shipment and the name of the vessel is required. This
provision applies even when loading on board or shipment on a named vessel is
indicated by pre-printed wording on the non-negotiable sea waybill.
iv. be the sole original non-negotiable sea waybill
or, if issued in more than one original, be the full set as indicated on the
non-negotiable sea waybill.
v. contain terms and conditions of carriage or make
reference to another source containing the terms and conditions of carriage
(short form or blank back non-negotiable sea waybill). Contents of terms and
conditions of carriage will not be examined.
vi. contain no indication that it is subject to a
charter party.
b. For the purpose of this article, transhipment
means unloading from one vessel and reloading to another vessel during the
carriage from the port of loading to the port of discharge stated in the
credit.
c.
i. A non-negotiable sea waybill may indicate that
the goods will or may be transhipped provided that
the entire carriage is covered by one and the same non-negotiable sea
waybill.
ii. A non-negotiable sea waybill indicating that transhipment
will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a
container, trailer or LASH barge as evidenced by the non-negotiable sea
waybill.
d. Clauses in a non-negotiable sea waybill stating that the carrier reserves
the right to tranship will be disregarded.
a.
A bill of lading, however named, containing an indication that it is subject
to a charter party (charter party bill of lading), must appear to:
i. be signed by:
- the master or a named agent for or on behalf of the master, or
- the owner or a named agent for or on behalf of the owner, or
- the charterer or a named agent for or on behalf of the charterer.
Any signature by the master, owner, charterer or agent must be identified as
that of the master, owner, charterer or agent.
Any signature by an agent must indicate whether the agent has signed for or
on behalf of the master, owner or charterer.
An agent signing for or on behalf of the owner or charterer must indicate the
name of the owner or charterer.
ii. indicate that the goods have been shipped on board a named vessel at the
port of loading stated in the credit by:
- pre-printed wording, or
- an on board notation indicating the date on which
the goods have been shipped on board.
The date of issuance of the charter party bill of lading will be deemed to be
the date of shipment unless the charter party bill of lading contains an on
board notation indicating the date of shipment, in which case the date stated
in the on board notation will be deemed to be the date of shipment.
iii. indicate shipment from the port of loading to
the port of discharge stated in the credit. The port of discharge may also be
shown as a range of ports or a geographical area, as stated in the credit.
iv. be the sole original charter party bill of lading or, if issued in more
than one original, be the full set as indicated on the charter party bill of
lading.
b. A bank will not examine charter party contracts, even if they are required
to be presented by the terms of the credit.
a.
An air transport document, however named, must appear to:
i. indicate the name of the carrier and be signed
by:
- the carrier, or
- a named agent for or on behalf of the carrier.
Any signature by the carrier or agent must be identified as that of the
carrier or agent.
Any signature by an agent must indicate that the agent has signed for or on
behalf of the carrier.
ii.indicate that the goods
have been accepted for carriage.
iii. indicate the date of issuance. This date will
be deemed to be the date of shipment unless the air transport document
contains a specific notation of the actual date of shipment, in which case
the date stated in the notation will be deemed to be the date of shipment.
Any other information appearing on the air transport document relative to the
flight number and date will not be considered in determining the date of
shipment.
iv. indicate the airport of departure and the
airport of destination stated in the credit.
v. be the original for consignor or shipper, even if
the credit stipulates a full set of originals.
vi. contain terms and conditions of carriage or make
reference to another source containing the terms and conditions of carriage.
Contents of terms and conditions of carriage will not be examined.
b. For the purpose of this article, transhipment
means unloading from one aircraft and reloading to another aircraft during
the carriage from the airport of departure to the airport of destination
stated in the credit.
c.
i. An air transport document may indicate that the
goods will or may be transhipped, provided that the
entire carriage is covered by one and the same air transport document.
ii. An air transport document indicating that transhipment
will or may take place is acceptable, even if the credit prohibits transhipment.
Article 24. Road,
Rail or Inland Waterway Transport Documents
a.
A road, rail or inland waterway transport document, however named, must
appear to:
i. indicate the name of the carrier and:
- be signed by the carrier or a named agent for or on behalf of the carrier,
or
- indicate receipt of the goods by signature, stamp or notation by the
carrier or a named agent for or on behalf of the carrier.
Any signature, stamp or notation of receipt of the goods by the carrier or
agent must be identified as that of the carrier or agent.
Any signature, stamp or notation of receipt of the goods by the agent must
indicate that the agent has signed or acted for or on behalf of the carrier.
If a rail transport document does not identify the carrier, any signature or
stamp of the railway company will be accepted as evidence of the document
being signed by the carrier.
ii. indicate the date of shipment or the date the
goods have been received for shipment, dispatch or carriage at the place
stated in the credit. Unless the transport document contains a dated
reception stamp, an indication of the date of receipt or a date of shipment,
the date of issuance of the transport document will be deemed to be the date of
shipment.
iii. indicate the place of shipment and the place of
destination stated in the credit.
b.
i. A road transport document must appear to be the
original for consignor or shipper or bear no marking indicating for whom the
document has been prepared.
ii. A rail transport document marked "duplicate" will be accepted
as an original.
iii. A rail or inland waterway transport document will be accepted as an
original whether marked as an original or not.
c. In the absence of an indication on the transport document as to the number
of originals issued, the number presented will be deemed to constitute a full
set.
d. For the purpose of this article, transhipment
means unloading from one means of conveyance and reloading to another means
of conveyance, within the same mode of transport, during the carriage from
the place of shipment, dispatch or carriage to the place of destination
stated in the credit.
e.
i. A road, rail or inland waterway transport
document may indicate that the goods will or may be transhipped
provided that the entire carriage is covered by one and the same transport
document.
ii. A road, rail or inland waterway transport document indicating that transhipment will or may take place is acceptable, even
if the credit prohibits transhipment.
Article 25.
Courier Receipt, Post Receipt or Certificate of Posting
Courier
Receipt, Post Receipt or Certificate of Posting
a. A courier receipt, however named, evidencing receipt of goods for
transport, must appear to:
i. indicate the name of the courier service and be
stamped or signed by the named courier service at the place from which the
credit states the goods are to be shipped; and
ii. indicate a date of pick-up or of receipt or
wording to this effect. This date will be deemed to be the date of shipment.
b. A requirement that courier charges are to be paid or prepaid may be
satisfied by a transport document issued by a courier service evidencing that
courier charges are for the account of a party other than the consignee.
c. A post receipt or certificate of posting, however named, evidencing
receipt of goods for transport, must appear to be stamped or signed and dated
at the place from which the credit states the goods are to be shipped. This
date will be deemed to be the date of shipment.
Article 26.
"On Deck", "Shipper's Load and Count", "Said by
Shipper to Contain" and Charges Additional to Freight
a.
A transport document must not indicate that the goods are or will be loaded
on deck. A clause on a transport document stating that the goods may be
loaded on deck is acceptable.
b. A transport document bearing a clause such as "shipper's load and
count" and "said by shipper to contain" is acceptable.
c. A transport document may bear a reference, by stamp or otherwise, to charges
additional to the freight.
A
bank will only accept a clean transport document. A clean transport document
is one bearing no clause or notation expressly declaring a defective
condition of the goods or their packaging. The word "clean" need
not appear on a transport document, even if a credit has a requirement for
that transport document to be "clean on board".
a.
An insurance document, such as an insurance policy, an insurance certificate
or a declaration under an open cover, must appear to be issued and signed by
an insurance company, an underwriter or their agents or their proxies.
Any signature by an agent or proxy must indicate whether the agent or proxy
has signed for or on behalf of the insurance company or underwriter.
b. When the insurance document indicates that it has been issued in more than
one original, all originals must be presented.
c. Cover notes will not be accepted.
d. An insurance policy is acceptable in lieu of an insurance certificate or a
declaration under an open cover.
e. The date of the insurance document must be no later than the date of
shipment, unless it appears from the insurance document that the cover is
effective from a date not later than the date of shipment.
f.
i.The insurance document must indicate the amount
of insurance coverage and be in the same currency as the credit.
ii. A requirement in the credit for insurance coverage to be for a percentage
of the value of the goods, of the invoice value or similar is deemed to be
the minimum amount of coverage required.
If there is no indication in the credit of the insurance coverage required,
the amount of insurance coverage must be at least 110% of the CIF or CIP
value of the goods.
When the CIF or CIP value cannot be determined from the documents, the amount
of insurance coverage must be calculated on the basis of the amount for which
honor or negotiation is requested or the gross value of the goods as shown on
the invoice, whichever is greater.
iii. The insurance document must indicate that risks are covered at least
between the place of taking in charge or shipment and the place of discharge
or final destination as stated in the credit.
g. A credit should state the type of insurance required and, if any, the
additional risks to be covered. An insurance document will be accepted
without regard to any risks that are not covered if the credit uses imprecise
terms such as "usual risks" or "customary risks".
h. When a credit requires insurance against "all risks" and an
insurance document is presented containing any "all risks" notation
or clause, whether or not bearing the heading "all risks", the
insurance document will be accepted without regard to any risks stated to be
excluded.
i. An insurance document may contain reference to
any exclusion clause.
j. An insurance document may indicate that the cover is subject to a
franchise or excess (deductible).
Article 29. Extension
of Expiry Date or Last Day for Presentation
a.
If the expiry date of a credit or the last day for presentation falls on a
day when the bank to which presentation is to be made is closed for reasons
other than those referred to in article 36, the expiry date or the last day
for presentation, as the case may be, will be extended to the first following
banking day.
b. If presentation is made on the first following banking day, a nominated
bank must provide the issuing bank or confirming bank with a statement on its
covering schedule that the presentation was made within the time limits
extended in accordance with sub-article 29 (a).
c. The latest date for shipment will not be extended as a result of
sub-article 29 (a).
Article 30. Tolerance
in Credit Amount, Quantity and Unit Prices
a.
The words "about" or "approximately" used in connection
with the amount of the credit or the quantity or the unit price stated in the
credit are to be construed as allowing a tolerance not to exceed 10% more or
10% less than the amount, the quantity or the unit price to which they refer.
b. A tolerance not to exceed 5% more or 5% less than the quantity of the
goods is allowed, provided the credit does not state the quantity in terms of
a stipulated number of packing units or individual items and the total amount
of the drawings does not exceed the amount of the credit.
c. Even when partial shipments are not allowed, a tolerance not to exceed 5%
less than the amount of the credit is allowed, provided that the quantity of
the goods, if stated in the credit, is shipped in full and a unit price, if
stated in the credit, is not reduced or that sub-article 30 (b) is not
applicable. This tolerance does not apply when the credit stipulates a
specific tolerance or uses the expressions referred to in sub-article 30 (a).
Articie 31.
Partial Drawings or Shipments
a.
Partial drawings or shipments are allowed.
b. A presentation consisting of more than one set of transport documents
evidencing shipment commencing on the same means of conveyance and for the
same journey, provided they indicate the same destination, will not be
regarded as covering a partial shipment, even if they indicate different
dates of shipment or different ports of loading, places of taking in charge
or dispatch. If the presentation consists of more than one set of transport
documents, the latest date of shipment as evidenced on any of the sets of
transport documents will be regarded as the date of shipment.
A presentation consisting of one or more sets of transport documents
evidencing shipment on more than one means of conveyance within the same mode
of transport will be regarded as covering a partial shipment, even if the
means of conveyance leave on the same day for the same destination.
c. A presentation consisting of more than one courier receipt, post receipt
or certificate of posting will not be regarded as a partial shipment if the
courier receipts, post receipts or certificates of posting appear to have
been stamped or signed by the same courier or postal service at the same
place and date and for the same destination.
If
a drawing or shipment by installments within given periods is stipulated in
the credit and any installment is not drawn or shipped within the period
allowed for that installment, the credit ceases to be available for that and
any subsequent installment
A
bank has no obligation to accept a presentation outside of its banking hours.
Article 34.
Disclaimer on Effectiveness of Documents
A
bank assumes no liability or responsibility for the form, sufficiency,
accuracy, genuineness, falsification or legal effect of any document, or for
the general or particular conditions stipulated in a document or superimposed
thereon; nor does it assume any liability or responsibility for the
description, quantity, weight, quality, condition, packing, delivery, value
or existence of the goods, services or other performance represented by any
document, or for the good faith or acts or omissions, solvency, performance
or standing of the consignor, the carrier, the forwarder, the consignee or
the insurer of the goods or any other person.
Article 35.
Disclaimer on Transmission and Translation
A
bank assumes no liability or responsibility for the consequences arising out
of delay, loss in transit, mutilation or other errors arising in the
transmission of any messages or delivery of letters or documents, when such
messages, letters or documents are transmitted or sent according to the
requirements stated in the credit, or when the bank may have taken the
initiative in the choice of the delivery service in the absence of such
instructions in the credit.
If a nominated bank determines that a presentation is complying and forwards
the documents to the issuing bank or confirming bank, whether or not the
nominated bank has honored or negotiated, an issuing bank or confirming bank
must honor or negotiate, or reimburse that nominated bank, even when the
documents have been lost in transit between the nominated bank and the
issuing bank or confirming bank, or between the confirming bank and the
issuing bank.
A bank assumes no liability or responsibility for errors in translation or
interpretation of technical terms and may transmit credit terms without
translating them.
A
bank assumes no liability or responsibility for the consequences arising out
of the interruption of its business by Acts of God, riots, civil commotions,
insurrections, wars, acts of terrorism, or by any strikes or lockouts or any
other causes beyond its control.
A bank will not, upon resumption of its business, honor or negotiate under a
credit that expired during such interruption of its business.
Article 37.
Disclaimer for Acts of and Instructed Party
a.
A bank utilizing the services of another bank for the purpose of giving
effect to the instructions of the applicant does so for the account and at
the risk of the applicant.
b. An issuing bank or advising bank assumes no liability or responsibility
should the instructions it transmits to another bank not be carried out, even
if it has taken the initiative in the choice of that other bank.
c. A bank instructing another bank to perform services is liable for any
commissions, fees, costs or expenses ("charges") incurred by that
bank in connection with its instructions.
If a credit states that charges are for the account of the beneficiary and
charges cannot be collected or deducted from proceeds, the issuing bank
remains liable for payment of charges.
A credit or amendment should not stipulate that the advising to a beneficiary
is conditional upon the receipt by the advising bank or second advising bank
of its charges.
d. The applicant shall be bound by and liable to indemnify a bank against all
obligations and responsibilities imposed by foreign laws and usages.
a.
A bank is under no obligation to transfer a credit except to the extent and
in the manner expressly consented to by that bank.
b. For the purpose of this article:
Transferable credit means a credit that specifically states it is
"transferable". A transferable credit may be made available in
whole or in part to another beneficiary ("second beneficiary") at
the request of the beneficiary ("first beneficiary").
Transferring bank means a nominated bank that transfers the credit or, in a
credit available with any bank, a bank that is specifically authorized by the
issuing bank to transfer and that transfers the credit. An issuing bank may
be a transferring bank.
Transferred credit means a credit that has been made available by the
transferring bank to a second beneficiary.
c. Unless otherwise agreed at the time of transfer, all charges (such as
commissions, fees, costs or expenses) incurred in respect of a transfer must
be paid by the first beneficiary.
d. A credit may be transferred in part to more than one second beneficiary
provided partial drawings or shipments are allowed.
A transferred credit cannot be transferred at the request of a second
beneficiary to any subsequent beneficiary. The first beneficiary is not
considered to be a subsequent beneficiary.
e. Any request for transfer must indicate if and under what conditions
amendments may be advised to the second beneficiary. The transferred credit
must clearly indicate those conditions.
f. If a credit is transferred to more than one second beneficiary, rejection
of an amendment by one or more second beneficiary does not invalidate the
acceptance by any other second beneficiary, with respect to which the
transferred credit will be amended accordingly. For any second beneficiary
that rejected the amendment, the transferred credit will remain unamended.
g. The transferred credit must accurately reflect the terms and conditions of
the credit, including confirmation, if any, with the exception of:
- the amount of the credit,
- any unit price stated therein,
- the expiry date,
- the period for presentation, or
- the latest shipment date or given period for shipment,
any or all of which may be reduced or curtailed.
The percentage for which insurance cover must be effected
may be increased to provide the amount of cover stipulated in the credit or
these articles.
The name of the first beneficiary may be substituted for that of the
applicant in the credit.
If the name of the applicant is specifically required by the credit to appear
in any document other than the invoice, such requirement must be reflected in
the transferred credit.
h. The first beneficiary has the right to substitute its own invoice and
draft, if any, for those of a second beneficiary for an amount not in excess
of that stipulated in the credit, and upon such substitution the first
beneficiary can draw under the credit for the difference, if any, between its
invoice and the invoice of a second beneficiary.
i. If the first beneficiary is to present its own
invoice and draft, if any, but fails to do so on first demand, or if the
invoices presented by the first beneficiary create discrepancies that did not
exist in the presentation made by the second beneficiary and the first
beneficiary fails to correct them on first demand, the transferring bank has
the right to present the documents as received from the second beneficiary to
the issuing bank, without further responsibility to the first beneficiary.
j. The first beneficiary may, in its request for transfer, indicate that
honor or negotiation is to be effected to a second beneficiary at the place
to which the credit has been transferred, up to and including the expiry date
of the credit. This is without prejudice to the right of the first
beneficiary in accordance with sub-article 38 (h).
k. Presentation of documents by or on behalf of a second beneficiary must be
made to the transferring bank..
The
fact that a credit is not stated to be transferable shall not affect the
right of the beneficiary to assign any proceeds to which it may be or may
become entitled under the credit, in accordance with the provisions of
applicable law. This article relates only to the assignment of proceeds and
not to the assignment of the right to perform under the credit.
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