ICC’s new rules on documentary credits, which are used for letter of credit transactions worldwide, were approved by the ICC Commission on Banking Technique and Practice on 25 October 2006. UCP 600 is the first revision of the rules since 1993 and represents more than three years of work by the commission. The implementation date is 1 July 2007.
UCP 600 contains significant changes to the existing rules, including:
- A reduction in the number of articles from 49 to 39;
- New articles on “Definitions” and “Interpretations” providing more clarity and precision in the rules;
- A definitive description of negotiation as “purchase” of drafts of documents;
- The replacement of the phrase “reasonable time” for acceptance or refusal of documents by a maximum period of five banking days.
UCP 600 also includes the 12 Articles of the eUCP, ICC’s supplement to the UCP governing presentation of documents in electronic or part-electronic form.
The UCP were first published by ICC in 1933. Revised versions were issued by the ICC in 1951, 1962, 1974, 1983 and 1993. Written into virtually every letter of credit, the UCP are accepted worldwide. They are the most successful private rules for trade ever developed and illustrate the importance ICC attaches to self-regulation.
Following the sell-out event in October this year, Understanding the UCP 600, presented by Chair of the UCP 600 Drafting Group Gary Collyer, will take place on 26 January, at the Prince de Galles hotel, Paris.