UCP 600

UCP 600 is the latest version of the rules that govern letters of credit
transactions worldwide.
What is UCP 600? What is UCPDC 600?
UCP 600 is prepared by International Chamber of Commerces (ICC)
Commission on Banking Technique and Practice. Its full name is 2007
Revision of Uniform Customs and Practice for Documentary Credits, UCP 600,
and (ICC Publication No. 600). The ICC Commission on Banking Technique
and Practice approved UCP 600 on 25 October 2006. The rules have been
effective since 1 July 2007.
UCP 500 was the rules that had been in implementation before UCP 600.
There are several significant differences exist between UCP 600 and UCP
500. Some of these differences are as follows;

The number of articles reduced from 49 to 39 in UCP 600;

In order to reach a standard meaning of terms used in the rules and

prevent unnecessary repetitions two new articles have been added to
the UCP 600. These newly added articles are Article 2 Definitions and
Article 3 Interpretations. These articles bring more clarity and
precision in the rules;

A definitive description of negotiation as purchase of drafts of

documents;

New provisions, which allow for the discounting of deferred payment

credits;

The replacement of the phrase reasonable time for acceptance or

refusal of documents by a maximum period of five banking days.

History of UCP

First uniform rules published by ICC in 1933. Revised versions were

issued in 1951, 1962, 1974, 1983 and 1993.

1933 Uniform Customs and Practice for Commercial Documentary

Credits
1951 Revision - Uniform Customs and Practice for Commercial

Documentary Credits
1962 Revision - Uniform Customs and Practice for Documentary Credits
1974 Revision Uniform Customs and Practice for Documentary

Credits
1983 Revision Uniform Customs and Practice for Documentary Credits
1993 Revision Uniform Customs and Practice for Documentary
Credits

Currently majority of letters of credit issued everyday is subject to latest

version of the UCP. This widely acceptance is the key sign that shows the
importance of the UCP, which are the most successful private rules for
trade ever developed.
eUCP
Almost all of the presentations are being made in paper or traditional
format still in today's letters of credit environment. However, as
telecommunication technology is expanding its borders, it is highly
expected that in the very near future traditional processes will be
substituted with the electronic paperless transactions. In order to
establish set of rules that governs electronic presentations the ICC

Banking Commission established a Working Group consisting of experts in

the UCP, electronic trade, legal issues and related industries, such as
transport, to prepare the appropriate rules for electronic and mixed
presentations. Supplement to the Uniform Customs and Practice for
Documentary Credits for Electronic Presentation or "eUCP" is the result of
the efforts of this committee.
The eUCP is not a revision of the UCP. The UCP will continue to provide the
industry with rules for paper letters of credit for many years. The eUCP is
a supplement to the UCP that, when used in conjunction with the UCP, will
provide the necessary rules for the presentation of the electronic
equivalents of paper documents under letters of credit.
What is the latest version of UCP?
Almost all of the letter of credit texts having a phrase Under field "40E: Applicable
Rules" telling us that credit subject to "UCP LATEST VERSION".

Uniform Customs and Practice for Documentary Credits have been

established long ago. First international letter of credit rules published
nearly 80 years ago in year 1933. Since then letter of credit rules have been
revised regularly by ICC ( International Chamber of Commerce). Let us have
a look at the UCP history below,

1933 Uniform Customs and Practice for Commercial Documentary

Credits

1951 Revision - Uniform Customs and Practice for Commercial

Documentary Credits

1962 Revision - Uniform Customs and Practice for Documentary Credits

1974 Revision Uniform Customs and Practice for Documentary

Credits

1983 Revision Uniform Customs and Practice for Documentary

Credits (UCP 400)

1993 Revision Uniform Customs and Practice for Documentary Credits

(UCP 500)

2007 Revision Uniform Customs and Practice for Documentary

Credits (UCP 600)

As indicated above 2007 Revision of the letter of credit rules are the latest
version of the Uniform Customs and Practice for Documentary Credits. Banks
that do not want to create any disambiguaty on their credit texts should
always mention that letters of credit that they have issued is subject to "UCP
LATEST VERSION". If they would have not act on this way by not giving
express reference to the exact version of letter of credit rules, than one of
the letter of credit party may indicate that they would like to use other
version of Uniform Customs and Practice for Documentary Credits when
fulfilling their obligations.
Source: Retrieved from http://www.letterofcredit.biz/UCP_latest_version-UCP600.html on December 12, 2014