International Standard Demand Guarantees Practice (ISDGP) update


First mentioned in the URDG Newsletter dated 1 July 2012, edited by Georges Affaki:

"Task Force members are often asked whether the ICC Banking Commission will compile and release in the form of a booklet the "international standard demand guarantee practice" referred to in URDG 758 article 2. There is consensus that any such publication would be premature at this stage. It took ICC 10 years between the drafting of the then-novel concept of international standard banking practice in UCP 500 and releasing the first compilation of ISBP (ICC pub 645, now updated into ICC pub 681). The Task Force would better concentrate its efforts on promoting a wider use of URDG 758, especially in public procurement. That said, the Task Force is regularly compiling practices fed back to its members through the numerous workshops on URDG 758 organised around the world, the queries submitted to the ICC Banking Commission and its own members' experiences as demand guarantee experts. In due course, those practices would likely evolve into a compilation of ISDGP. In the meantime, readers should remember that international standard demand guarantee practice - like international standard banking practice for UCP - is a method to identify on a case-by-case basis the proper international practice to answer a question that is not covered in the terms of the guarantee or URDG. Even when codified and released, international standard demand guarantee practice will - and should - never be an exhaustive recital of all guarantee practice, for that would jeopardise the adaptability of URDG to the evolving operational context."


The first formal statement came at the ICC Banking Commission meeting in Johannesburg, April 2016, when Andrea Hauptmann (Raifeissen Bank International AG) announced that five years after the launch of URDG 758, experience had been gained toward practicing and dealing with URDG, and that the time was now mature for the Guarantees Task Force, alongside the Banking and the CLP commissions to begin the project to develop ISDGP - International Standard Demand Guarantee Practice. 


During the meeting in Rome, November 2016, it was stated that a drafting group had been set up to look at the main drivers. 


The first draft has now been produced by the drafting group and has been distributed to ICC National Committees.


We will keep you updated as this moves forward. 




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