Newsletter offers insight into new documentary credit rules
The autumn issue of DCInsight, ICC’s authoritative news magazine on documentary credits, features a series of articles giving practitioners’ first reactions to UCP 600, ICC’s new rules on documentary credits. The rules, which were approved by the ICC Banking Commission in late October, enter into force on 1 July 2007.
The magazine leads with a look back at the UCP drafting process by Gary Collyer, head of the drafting group that developed the rules. In a frank appraisal, Mr Collyer cites the obvious advantages of the new UCP – an easier-to-read text and a simplified structure, among others. He also cites some of the issues that were not completely addressed, including corporate-issued letters of credit and how to deal with inconsistent data among documents in a presentation.
The autumn issue continues with a special section containing analysis by ICC Banking Commission members:
- Pradeep Taneja of Bahrain says the UCP 600 “restores the credibility of L/Cs”
- Frank Reynolds of the US presents a trader’s view of the text
- Jeremy Smith of the UK claims the rules were “a major opportunity missed”’
- David Meynell, also of the UK, says that the UCP, like all rules, “needed to be reinvigorated”
- Peter Holst of BIMCO gives a shipping association’s view
- William Cameron of Canada balances the pluses and minuses of the revision
Says Pradeep Taneja of BankMuscat International and ICC Bahrain: “DCInsight is the place to go for an analysis of the new UCP, and the autumn issue — with perceptive articles by bankers, traders and shippers — is particularly helpful.”
DCInsight, now in its 12th year of publication, provides the most comprehensive commentary yet on the UCP text. Future issues will include a wide range of analysis by other members of the ICC Banking Commission.