Articles by Month
The Risk Ladder
For any trade finance transaction, it is imperative that
the buyer and seller agree upon the correct or appropriate form of settlement...
Need for a revision of URC?
Every so often, the issue of revising the Uniform Rules
for Collections (URC) is raised...
The first UCP: what survived?
It can be a fascinating experience to delve into earlier
versions of Uniform Customs and Practice (UCP) in order to understand how it
developed into one of the most trusted sets of rules ever used in the trade
A very simple acronym DAVEGARY will provide you with most of the
information required to handle the risk elements of a trade transaction...
ISBP: General considerations when checking documents
from our ISBP training modules...
The principle of autonomy
A documentary credit is a written undertaking given by a
bank (Issuing Bank) to the seller (Beneficiary) on the instruction of the buyer
(Applicant) to pay at sight or at a determinable future date up to a stated
amount of money...
Endorsing Documentary Credits
Prior to the development and use of electronic
communication platforms, such as SWIFT, to deliver issuances of documentary
credits, it was common practice to include a requirement in a documentary
credit that a negotiating bank should endorse the amount of any drawings on the
reverse of the credit itself and that such endorsement should be confirmed on
the schedule to the issuing bank enclosing the presentation...
Documents transmitted between
parties under documentary credits invariably arrive at the correct destination...
When a documentary credit
states that costs additional to freight are not acceptable, a bill of lading,
for example, is not to indicate that costs additional to freight have been or
will be incurred...
A revolving documentary credit
is issued to avoid the issuance of repeat documentary credits
in respect of the same type of goods, same parties and same