UCP 600 – Uniform Customs and Practice for Documentary Credits

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.

UCP 600
Image Credit: ICC

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

  1. Application of UCP
  2. Definitions
  3. Interpretations
  4. Credit vs Contracts
  5. Documents vs Goods, Services or Performance

UCP 600 Articles 6 – 13 Liabilities and Responsibilities

  1. Availability, Expiry Date and Place for Presentation
  2. Issuing Bank Undertaking
  3. Confirming Bank Undertaking
  4. Advising of Credits and Amendments
  5. Amendments
  6. Teletransmitted and Pre-Advised Credits and Amendments
  7. Nomination
  8. Bank-to-Bank Reimbursement Arrangements

UCP 600 Articles 14 – 17 Examination of Documents

  1. Standard for Examination of Documents
  2. Complying Presentation
  3. Discrepant Documents, Waiver and Notice
  4. Original Documents and Copies

UCP 600 Articles 18 – 28 Documents

  1. Commercial Invoice
  2. Transport Document Covering at Least Two Different Modes of Transport
  3. Bill of lading
  4. Non-Negotiable Sea Waybill
  5. Charter Party Bill of Lading
  6. Air Transport Document
  7. Road, Rail or Inland Waterway Transport Documents
  8. Courier Receipt, Post Receipt or Certificate of Posting
  9. On Deck”, “Shipper’s Load and Count”, “Said by Shipper to Contain” and Charges Additional to Freight
  10. Clean Transport Document
  11. Insurance Document and Coverage

UCP 600 Articles 29 – 33 Miscellaneous Provisions

  1. Extension of Expiry Date or Last Day for Presentation
  2. Tolerance in Credit Amount, Quantity and Unit Prices
  3. Partial Drawings or Shipments
  4. Instalment Drawings or Shipments
  5. Hours of Presentation

UCP 600 Articles 34 – 37 Disclaimers

  1. Disclaimer on Effectiveness of Documents
  2. Disclaimer on Transmission and Translation
  3. Force Majeure
  4. Disclaimer for Acts of an Instructed Party

UCP 600 Articles 38 – 39 Transferable Credit & Assignment

  1. Transferable Credits
  2. Assignment of Proceeds

UCP 600 pdf free download

Please click on the below link to download a copy of UCP 600 pdf.

UCP 600 book pdf

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