UCP 600 stands for “Uniform Customs and Practice for Documentary Credits, 600.” It is a set of rules published by the International Chamber of Commerce (ICC) that govern the use of documentary credits in international trade.
A documentary credit or a letter of credit is a financial instrument that acts as a guarantee of payment from a bank on behalf of a buyer to a seller. In international trade, a buyer and seller may not be familiar with each other, and so a documentary credit can provide a level of security for both parties. UCP 600 outlines the terms and conditions that must be met in order for a documentary credit to be considered valid and enforceable.
UCP 600 covers a wide range of topics related to documentary credits, including the roles and responsibilities of the parties involved (the buyer, the seller, and the banks), the content and format of the documentary credit, the documents that must be presented to the bank for payment, and the time limits for presenting those documents.
UCP 600 has been widely adopted by banks, traders, and other parties involved in international trade. These rules help to reduce the risk of disputes and ensure a level of consistency in the use of documentary credits around the world.
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Table of Contents
UCP full form
The full form of UCP is Uniform Customs and Practice for Documentary Credits. It is also commonly referred to by many people as UCPDC. The letters DC in UCPDC stands for Documentary Credits. Documentary Credit is another way of saying letter of credit.
UCP 600 Latest Version
UCP 600 is the 7th and the latest version of UCP. UCP600 came into effect from 1st July 2007. UCP 600 replaced the earlier version of UCP which was known as UCP 500.
History of UCP
The UCP was first published in the year 1933. After that first publication which was known as UCP 82, a total of six revisions have been done till now. The latest version of UCP is known as UCP 600. The history and development of UCP starting from the first version to the latest version is as detailed below:
1st version: UCP 82 – 1933
2nd version: UCP 151 – 1951
3rd version: UCP 222 – 1962
4th version: UCP 290 – 1974
5th version: UCP 400 – 1983
6th version: UCP 500 – 1993
7th version: UCP 600 – 2007
UCP 600 Articles
There are 39 articles in UCP 600. They are classified into seven groups as given below:
UCP 600 Articles 1 – 5 General Provisions and Definitions
- Application of UCP
- Definitions
- Interpretations
- Credit vs Contracts
- Documents vs Goods, Services or Performance
UCP 600 Articles 6 – 13 Liabilities and Responsibilities
- Availability, Expiry Date and Place for Presentation
- Issuing Bank Undertaking
- Confirming Bank Undertaking
- Advising of Credits and Amendments
- Amendments
- Teletransmitted and Pre-Advised Credits and Amendments
- Nomination
- Bank-to-Bank Reimbursement Arrangements
UCP 600 Articles 14 – 17 Examination of Documents
- Standard for Examination of Documents
- Complying Presentation
- Discrepant Documents, Waiver and Notice
- Original Documents and Copies
UCP 600 Articles 18 – 28 Documents
- Commercial Invoice
- Transport Document Covering at Least Two Different Modes of Transport
- Bill of lading
- Non-Negotiable Sea Waybill
- Charter Party Bill of Lading
- Air Transport Document
- Road, Rail or Inland Waterway Transport Documents
- Courier Receipt, Post Receipt or Certificate of Posting
- On Deck”, “Shipper’s Load and Count”, “Said by Shipper to Contain” and Charges Additional to Freight
- Clean Transport Document
- Insurance Document and Coverage
UCP 600 Articles 29 – 33 Miscellaneous Provisions
- Extension of Expiry Date or Last Day for Presentation
- Tolerance in Credit Amount, Quantity and Unit Prices
- Partial Drawings or Shipments
- Instalment Drawings or Shipments
- Hours of Presentation
UCP 600 Articles 34 – 37 Disclaimers
- Disclaimer on Effectiveness of Documents
- Disclaimer on Transmission and Translation
- Force Majeure
- Disclaimer for Acts of an Instructed Party
UCP 600 Articles 38 – 39 Transferable Credit & Assignment
- Transferable Credits
- Assignment of Proceeds
UCP 600 pdf free download
Please click on the below link to download a copy of UCP 600 pdf.
Suggested Readings
- How to clear CDCS Exam
- Back to Back Letter of Credit
- Transferable letter of credit
- What is a Letter of Credit?
- 30 CDCS sample questions with answers
- Disregard, Obligation and Without Delay in UCP 600
- Incoterms 2020 for CDCS exam
- The words Must, May and Should in UCP 600
- What is a Bill of Lading?
- eUCP 2.0 – Uniform Customs and Practice for Documentary Credits for Electronic Presentation Version 2.0
- URR 725 – Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits
- UCP 600 – Uniform Customs and Practice for Documentary Credits
- SWIFT message types relevant for CDCS Exam
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