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Back to Basics – ISBP 745 Key Principles

13/04/2022

UCP 600 article 14, as indicated by its title, provides some basic rules in respect of the examination of documents. These are supplemented by the content of ICC Publication 'International Standard Banking Practice for the Examination of Documents under UCP 600' (ISBP 745).

 

Some practitioners have argued that UCP and ISBP should be merged. When considering such a move, one needs to consider and appreciate that the success of UCP, for over 80 years, is down to its conciseness in being a set of rules instead of a 'how to', 'what if you do this' or 'what if this happens' publication.

 

Apart from an obvious fact of making a much larger publication, there is a very strong case for keeping rules separate from a series of descriptions of practice. 

 

For example, a practice may be contested on the grounds that it is not applicable in a given situation or to a trade transaction involving parties from two or more specific countries, where other practices are the standard. However, rules will remain applicable to all parties unless the terms and conditions of a documentary credit state otherwise.

 

The content or context of the sub-articles of UCP 600 article 14 are referenced in ISBP 745 as follows: 


Article 14 (in general) in Preliminary Considerations VI.
14 (c) in paragraphs A6 (c), A18 (b) (ii) and (c), and A19 (b).
14 (d) in paragraphs A6 (b), M4 and N4.
14 (e) in paragraphs D26, E22, F20, G20-21, H22, J17 and L1.
14 (f) in paragraphs A10, A18 (a), B18, M1, N1, P4 and Q1.
14 (h) in paragraph A26.
14 (j) in paragraphs D20, E16, F14, G15, H16 and J11.

 

 

 

 

 

This subject is covered in far greater detail within our training module ‘applying international standard banking practice' which can be purchased at https://www.tradefinance.training/shop/

 

 

 

 

www.tradefinance.training


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