Uniform Customs and

Practice for Documentary


Credits
Historical Evolution: -
2) 1933 (ICC No: 82) -"original, rules adopted by
number of European countries and some banks in
United States.

4) 1951 (ICC No 151) - adopted by a substantial

number of countries in Asia, Europe,. Africa and
in America.

6) 1962 (ICC No 222) adopted by U.K and common

wealth countries as well.
 Uniform Customs and
Practice for Documentary
Credits
1) 1974 (ICC No 290) - This revision
attained worldwide recognition and
adopted in about 170 countries including
the countries of socialist block.

3) 1983 (ICC No400)

5) 1993 (ICC No 500) Latest publication.

 Uniform Customs And Practice
for Documentary
Credits-1993 Revision. ICC Publication No 500.
A. General Provisions and Definitions
B. Form and Notification of Credit
C. Liabilities and Responsibilities
D. Documents
E. Miscellaneous Provisions
F. Transferable Credit
G. Assignment of Proceeds
General Provisions and
Definition
Article 1: - Application of UCP
Binding on all parties to the credit.
Article2: - Meaning of Credit
Article3: - Credit Vs Contracts
Both separate transactions
Article4:-
Documents Vs Goods/Services/performance
All parties deal in documents not in goods
General Provisions and
Definition
Article5:- Instruction to Issue/Amend Credits
must be complete and precise.
B - Form and Notification of Credit.
Article6:- Revocable Vs Irrevocable Credits.
Credit must state the type otherwise shall be deemed
to be irrevocable.
Article7:- Advising Bank's Liability
To exercise reasonable care to check authenticity if
elects to advise the credit, otherwise must inform the
issuing bank without delay.
General Provisions and
Definition
Article 8: - Revocation of a Credit:
may be amended or cancelled by the issuing bank
at any moment and without prior notice to the
beneficiary, if credit is Revocable.
Artile9: - Liability of Issuing and
Confirming Banks: - - (Irrevocable Credits) __
definite undertaking of issuing bank and
confirming bank; provided stipulated documents
are submitted & stipulations complied with.
.
General Provisions and
Definition
Article 10:-Types of Credit (with regard to
availability of credit)
All credits must State whether they are
available by:
(1) Sight Payment (2) By deferred payment
(3) By acceptance or (4) By negotiation.
General Provisions and
Definition
Article 11:- Tele transmitted and Pre-
Advised
Credits. Operative credit or not
(mail confirmation to follow or not). Not
operative credit.

Article 12-Incomplete or unclear instructions.

Without responsibility on Advisory Bank.
C- LIABILITIES AND RESPONSIBILITIES
General Provisions and
Definition
Article 13:- Standard for examination of
Documents:
Reasonable care. Consistency of documents with one
another, in compliance with terms and conditions_
consistency should appear on their face.
Article l4:- Discrepant documents and Notice.
Artuiclel5:- Disclaimer on Effectiveness of
documents. Banks assumes no liability or
responsibility for accuracy, genuiness, legal effect
etc of documents.
General Provisions and
Definition
Article 17: - Force Majeaure
Banks assume no liability for consequences
arising out of interruption of their business by
Act of God, riots etc.
Article 19:- Bank- to bank reimbursement
arrangements. Reimbursement instructions/
authorization to be provided in good time before
expiry of L.C
D- Documents:
General Provisions and
Definition
Arricle20: Ambiguity- as to issuers of
Documents consistency with other documents
to be established.

Article 21: - Unspecified Issuer or Contents

of
Documents Consistency criterion.
General Provisions and
Definition
Article 22: -
Issuance Date of Documents Vs Credit Date.
Date of issuance prior to the date of issue of credit
acceptable subject to the condition that document
presented with in time limits set out in the credit and
other article of the credit (B/L stale after 21 days of
shipment)
General Provisions and
Definition
Article 32: - Clean Transport Documents-
No defective clause or notation such as
defective packing leakage in drums etc.

Article33: - Freight payable/Prepaid

(Notations such as pre-payable not
acceptable).
General Provisions and
Definition
Article34: - Insurance Documents
2. Cover notes issued by brokers will not be
accepted
3. Insurance documents must be expressed in
the same currency as the credit.
4. CIF - named port of destination plus 10%
n n(Minimum amount for which
insurance document must indicate)
5. E - Miscellaneous Provisions
General Provisions and
Definition
Article 39: Allowance in Credit Amount, Quantity
and Unit price
3. Words 'About', 'Approximately' etc used with the
amount of credit or quantity or Unit price are to
be constructed as allowing a difference not to
exceed 10% more or 10% less.
4. Tolerance of 5% more or 5% less permissible if
no words as above used, provided credit does not
stipulate the specified amount/quantity.
General Provisions and
Definition
Article 42 :–
Expiry Date for presentation/payment and
place for presentation of documents
Exception

in Article 44 (a).
General Provisions and
Definition
Article 43: - Limitation on Expiry Date
In addition to stipulating an expiry date for
presentation of documents, every credit which calls
for a transport document should also stipulate a
specified period of time after the date of shipment
during which presentation must be made. If no such
period is stipulated banks will not accept documents
presented to them later than 21 days after the date of
shipment. In any event documents must be presented
before expiry date of the credit.
General Provisions and
Definition
Article 44: -Extension of Expiry Dare In case –
closed day for bank - presentation should be,
extended to the first following day on which such
bank is open.
Article 45: - Hours of Presentation with in banking
Hours.
F - Transferable Credit
Article 48 - Transferable Credit
G - Assignment of Proceeds
General Provisions and
Definition
Article 49 - Assignment of Proceeds: -
Beneficiary has the right to assign any
proceed not the right to perform under the
credit.