Chinese bank executive wants ICC trade rules to keep up with the times
Chinese banks widely accept ICC trade rules, a top official of the Bank of China has asserted in an interview to be published in the quarterly newsletter Documentary Credits Insight, due out on 25 January.
Zhang Yanling, who is the new Vice-Chair of the ICC Banking Commission, is Executive Vice President as well as Managing Director and Chief Legal Advisor of the Bank of China.
She said ICC rules governing documentary credits (UCP 500), and the Uniform Rules for Collections, were the most important guidelines for Chinese banks in trade settlement practice.
But the Chinese banking official added: “Great changes in world trade and the banking sector and world trade have taken place in the past 10 years. ICC rules should keep pace with the times.”
Zhang Yanling said she was confident that the new text for the UCP (Uniform Customs and Practice for Documentary Credits) would quickly be adopted by Chinese bankers and traders, and would become the guideline for all letter of credit practitioners, just as the current UCP 500 has been.
She was confident that the revised version would reduce the presentation of non-compliant documents, reduce unjustified rejections by banks, promote the use of letters of credit and thereby boost international trade.
Asked about reports by the ICC Intern ational Maritime Bureau that some Chinese banks were using technicalities to dishonour documentary credits – for example, a misspelling of the word “suit” – Zhang Yanling said she strongly opposed such practices.