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eUCP Version 2.0: Article e1 Scope of the Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentations (“eUCP”)

07/05/2019

The formal title to this supplement to UCP 600 is "Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation (eUCP) Version 2.0". 

 

Because of the length, the shorthand rendition "eUCP" is recognised in the title to this article. This shorthand form uses the "e" term common in eCommerce and its link to the Uniform Customs and Practice is suggested by the abbreviation "UCP", symbolising the supplemental relationship of the eUCP to the UCP. 

 

The eUCP is not intended to be a set of self-contained rules, such as ISP98 or the URDG, but to operate by reference to the UCP. The rules apply where it can be determined that the credit is intended by the issuer to be subject to the eUCP.

 

In indicating that a credit is subject to the eUCP, it is recommended that the applicable version also be indicated. Where the issuer does not do so, eUCP sub-article e1 (c) provides that the credit will be subject to the latest version in effect on the date the credit is issued, or, if made subject to the eUCP by an amendment accepted by the beneficiary, the date of the amendment. As of 1 July 2019, the version will be 2.0.

 

In accordance with UCP 600 article 1 (Application of UCP), the provisions of the eUCP can be modified or excluded in the text of the credit, but no provision in a credit should be deemed to modify or exclude a provision in the eUCP unless the credit expressly so indicates.

 

It is normal practice that, under UCP 600, that a physical location for presentation of documents will be stated within the credit or its accompanying advice. While "place of presentation" is not formally defined in UCP 600, it means the place where the beneficiary is required or permitted to present documents to satisfy the required conditions of the issuer or confirmer's documentary credit obligation. UCP 600 sub-article 6 (d) (ii) (Availability, Expiry Date and Place for Presentation) states that the place of the bank with which the credit is available is the place for presentation. Although not expressly stated, a physical address is implied. 

 

The eUCP defines ‘place for presentation' as an electronic address. Where an eUCP credit requires or permits presentation of electronic records, their place of presentation will typically be to an electronic address and not a physical one. As such, in order to allow banks to ensure compliance with regulatory and sanctions issues, it is essential that an eUCP credit also indicate a physical location.

 

 

 

 

 

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