UNIFORMCUSTOMSANDPRACTICEFORDOCUMENTARYCREDITS*
ICCPublicationNo.500EffectiveJanuary1,1994
CONTENTS
GENERALPROVISIONSANDDEFINITIONS
Chapter1ApplicationofUCP
Chapter2MeaningofCredit
Chapter3Creditsv.Contracts
Chapter4Documentsv.Goods/Services/Performances
Chapter5InstructionstoIssue/AmendCredits
FORMANDNOTIFICATIONOFCREDITS
Chapter6Revocablev.IrrevocableCredits
Chapter7AdvisingBank’sLiability
Chapter8RevocationofaCredit
Chapter9LiabilityofIssuingandConfirmingBanks
Chapter10TypesofCredit
Chapter11TeletransmittedandPreAdvisedCredit
Chapter12IncompleteorUnclearInstructions
Chapter13StandardforExaminationofDocuments
Chapter14DiscrepantDocumentsandNotice
Chapter15DisclaimeronEffectivenessofDocuments
Chapter16DisclaimerontheTransmissionofMessages
Chapter17ForceMajeure
Chapter18DisclaimerforActsofanInstructedParty
Chapter19BanktoBankReimbursementArrangements
DOCUMENTS
Chapter20AmbiguityastotheIssuersofDocuments
Chapter21UnspecifiedIssuersorContentsofDocuments
Chapter22IssuanceDateofDocumentsVs.CreditDate
Chapter23Marine/OceanBillofLading
Chapter24NonNegotiableSeaWaybill
Chapter25CharterPartyBillofLading
Chapter26MultimodalTransportDocument
Chapter27AirTransportDocument
Chapter28Road,RailorinlandWaterwaytransportDocuments
Chapter29CourierandPostReceipts
Chapter30TransportDocumentsissuedbyFreightForwarders
Chapter31"OnDeck","Shipper’sLoadandCount",NameofConsignor
Chapter32CleanTransportDocuments
Chapter33FreightPayable/PrepaidTransportDocuments
Chapter34InsuranceDocuments
Chapter35TypeofInsuranceCover
Chapter36AllRisksInsuranceCover
Chapter37CommercialInvoices
Chapter38OtherDocuments
MISCELLANEOUSPROVISION
Chapter39AllowancesinCreditAmount,QuantityandUnitPrice
Chapter40PartialShipments/Drawings
Chapter41InstallmentShipments/Drawings
Chapter42ExpiryDateandPlaceforPresentationofDocuments
Chapter43LimitationontheExpiryDate
Chapter44ExtensionofExpiryDate
Chapter45HoursofPresentation
Chapter46GeneralExpressionsastoDatesforShipment
Chapter47DateTerminologyforPeriodsofShipment
TRANSFERABLECREDIT
Chapter48TransferableCredit
ASSIGNMENTOFPROCEEDS
Chapter49AssignmentofProceeds
ICCARBITRATION
GENERALPROVISIONSANDDEFINITIONS
ARTICLE1
ApplicationofUCP
TheUniformCustomsandPracticeforDocumentaryCredits,1993Revision,ICCPublicationNo.500,shallapplytoallDocumentaryCredits(includingtotheextenttowhichtheymaybeapplicable,StandbyLetter(s)ofCredit)wheretheyareincorporatedintothetextoftheCredit.Theyarebindingonallpartiesthereto,unlessotherwiseexpresslystipulatedintheCredit.
ARTICLE2
MeaningofCredit
ForthepurposesoftheseArticles,theexpressions"DocumentaryCredit(s)"and"StandbyLetter(s)ofCredit"(hereinafterreferredtoas"Credit(s)"),meananyarrangement,howevernamedordescribed,wherebyabank(the"IssuingBank")actingattherequestandontheinstructionsofacustomer(the"Applicant")oronitsownbehalf,
i.istomakeapaymenttoortotheorderofathirdparty(the"Beneficiary"),oristoacceptandpaybillsofexchange(Draft(s))drawnbytheBeneficiary,
or
ii.authorizesanotherbanktoeffectsuchpayment,ortoacceptandpaysuchbillsofexchange(Draft(s)),
or
iii.authorizesanotherbanktonegotiate,againststipulateddocument(s),providedthatthetermsandconditionsoftheCreditarecompliedwith.
ForthepurposesoftheseArticles,branchesofabankindifferentcountriesareconsideredanotherbank.
ARTICLE3
Creditsv.Contracts
A.Credits,bytheirnature,areseparatetransactionsfromthesalesorothercontract(s)onwhichtheymaybebasedandbanksareinnowayconcernedwithorboundbysuchcontract(s),evenifanyreferencewhatsoevertosuchcontract(s)isincludedintheCredit.Consequently,theundertakingofabanktopay,acceptandpayDraft(s)ornegotiateand/ortofulfillanyotherobligationundertheCredit,isnotsubjecttoclaimsordefensesbytheApplicantresultingfromhisrelationshipswiththeIssuingBankortheBeneficiary.
B.ABeneficiarycaninnocaseavailhimselfofthecontractualrelationshipsexistingbetweenthebanksorbetweentheApplicantandtheIssuingBank.
ARTICLE4
Documentsv.Goods/Services/Performances
InCreditoperationsallpartiesconcerneddealwithdocuments,andnotwithgoods,servicesand/orotherperformancestowhichthedocumentsmayrelate.
ARTICLE5
InstructionstoIssue/AmendCredits
A.InstructionsfortheissuanceofaCredit,theCredititself,instructionsforanamendmentthereto,andtheamendmentitself,mustbecompleteandprecise.
Inordertoguardagainstconfusionandmisunderstanding,banksshoulddiscourageanyattempt:
i.toincludeexcessivedetailintheCreditorinanyamendmentthereto;
ii.togiveinstructionstoissue,adviseorconfirmaCreditbyreferencetoaCreditpreviouslyissued(similarCredit)wheresuchpreviousCredithasbeensubjecttoacceptedamendment(s),and/orunacceptedamendment(s).
B.AllinstructionsfortheissuanceofaCreditandtheCredititselfand,whereapplicable,allinstructionsforanamendmenttheretoandtheamendmentitself,muststatepreciselythedocument(s)againstwhichpayment,acceptanceornegotiationistobemade.
FORMANDNOTIFICATIONOFCREDITS
ARTICLE6
Revocablev.IrrevocableCredits
A.ACreditmaybeeither
i.revocable,
or
ii.irrevocable.
B.TheCredit,therefore,shouldclearlyindicatewhetheritisrevocableorirrevocable.
C.IntheabsenceofsuchindicationtheCreditshallbedeemedtobeirrevocable.
ARTICLE7
AdvisingBank’sLiability
A.ACreditmaybeadvisedtoaBeneficiarythroughanotherbank(the"AdvisingBank")withoutengagementonthepartoftheAdvisingBank,butthatbank,ifitelectstoadvisetheCredit,shalltakereasonablecaretochecktheapparentauthenticityoftheCreditwhichitadvises.IfthebankelectsnottoadvisetheCredit,itmustsoinformtheIssuingBankwithoutdelay.
B.IftheAdvisingBankcannotestablishsuchapparentauthenticityitmustinform,withoutdelay,thebankfromwhichtheinstructionsappeartohavebeenreceivedthatithasbeenunabletoestablishtheauthenticityoftheCreditandifitelectsnonethelesstoadvisetheCredititmustinformtheBeneficiarythatithasnotbeenabletoestablishtheauthenticityoftheCredit.
ARTICLE8
RevocationofaCredit
A.ArevocableCreditmaybeamendedorcanceledbytheIssuingBankatanymomentandwithoutpriornoticetotheBeneficiary.
B.However,theIssuingBankmust:
i.reimburseanotherbankwithwhicharevocableCredithasbeenmadeavailableforsightpayment,acceptanceornegotiationforanypayment,acceptanceornegotiationmadebysuchbankpriortoreceiptbyitofnoticeofamendmentorcancellation,againstdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit;
ii.reimburseanotherbankwithwhicharevocableCredithasbeenmadeavailablefordeferredpayment,ifsuchabankhas,priortoreceiptbyitofnoticeofamendmentorcancellation,takenupdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit.
ARTICLE9
LiabilityofIssuingandConfirmingBanks
A.AnirrevocableCreditconstitutesadefiniteundertakingoftheIssuingBank,providedthatthestipulateddocumentsarepresentedtotheNominatedBankortotheIssuingBankandthatthetermsandconditionsoftheCreditarecompliedwith:
i.iftheCreditprovidesforsightpaymenttopayatsight;
ii.iftheCreditprovidesfordeferredpaymenttopayonthematuritydate(s)determinableinaccordancewiththestipulationsoftheCredit;iii.iftheCreditprovidesforacceptance;
a.bytheIssuingBanktoacceptDraft(s)drawnbytheBeneficiaryontheIssuingBankandpaythematmaturity,
or
b.byanotherdraweebanktoacceptandpayatmaturityDraft(s)drawnbytheBeneficiaryontheIssuingBankintheeventthedraweebankstipulatedintheCreditdoesnotacceptDraft(s)drawnonit,ortopayDrafts(s)acceptedbutnotpaidbysuchdraweebankatmaturity;
iv.iftheCreditprovidesfornegotiationtopaywithoutrecoursetodrawersand/orbonafideholders,Draft(s)drawnbytheBeneficiaryand/ordocument(s)presentedundertheCredit.ACreditshouldnotbeissuedavailablebyDraft(s)ontheApplicant.IftheCreditneverthelesscallsforDraft(s)ontheApplicant,bankswillconsidersuchDraft(s)asanadditionaldocument(s).
B.AconfirmationofanirrevocableCreditbyanotherbank(the"ConfirmingBank")upontheauthorizationorrequestoftheIssuingBank,constitutesadefiniteundertakingoftheConfirmingBank,inadditiontothatoftheissuingBank,providedthatthestipulateddocumentsarepresentedtotheConfirmingBankortoanyotherNominatedBankandthatthetermsandconditionsoftheCreditarecompliedwith:
i.IftheCreditprovidesforsightpaymenttopayatsight;
ii.iftheCreditprovidesfordeferredpaymenttopayonthematuritydate(s)determinableinaccordancewiththestipulationsoftheCredit;
iii.iftheCreditprovidesforacceptance:
a.bytheConfirmingBanktoacceptDraft(s)drawnbytheBeneficiaryontheConfirmingBankandpaythematmaturity,
or
b.byanotherdraweebanktoacceptandpayatmaturityDraft(s)drawnbytheBeneficiaryontheConfirmingBank,intheeventthedraweebankstipulatedintheCreditdoesnotacceptDraft(s)drawnonit,ortopayDraft(s)acceptedbutnotpaidbysuchdraweebankatmaturity;
iv.iftheCreditprovidesfornegotiationtonegotiatewithoutrecoursetodrawersand/orbonafideholders,Draft(s)drawnbytheBeneficiaryand/ordocument(s)presentedundertheCredit.ACreditshouldnotbeissuedavailablebyDraft(s)ontheApplicant.IftheCreditneverthelesscallsforDraft(s)ontheApplicant,bankswillconsidersuchDraft(s)asanadditionaldocument(s).
C.
i.IfanotherbankisauthorizedorrequestedbytheIssuingBanktoadditsconfirmationtoaCreditbutisnotpreparedtodoso,itmustsoinformtheIssuingBankwithoutdelay.
ii.UnlesstheIssuingBankspecifiesotherwiseinitsauthorizationorrequesttoaddconfirmation,theAdvisingBankmayadvisetheCredittotheBeneficiarywithoutaddingitsconfirmation.
D.
i.ExceptasotherwiseprovidedbyArticle48,anirrevocableCreditcanneitherbeamendednorcanceledwithouttheagreementoftheIssuingBank,theConfirmingBank,ifany,andtheBeneficiary.
ii.TheIssuingBankshallbeirrevocablyboundbyanamendment(s)issuedbyitfromthetimeoftheissuanceofsuchamendment(s).AConfirmingBankmayextenditsconfirmationtoanamendmentandshallbeirrevocablyboundasofthetimeofitsadviceoftheamendment.AConfirmingBankmay,however,choosetoadviseanamendmenttotheBeneficiarywithoutextendingitsconfirmationandifso,mustinformtheIssuingBankandtheBeneficiarywithoutdelay.
iii.ThetermsoftheoriginalCredit(oraCreditincorporatingpreviouslyacceptedamendment(s))willremaininforcefortheBeneficiaryuntiltheBeneficiarycommunicateshisacceptanceoftheamendmenttothebankthatadvisedsuchamendment.TheBeneficiaryshouldgivenotificationofacceptanceorrejectionofamendment(s).IftheBeneficiaryfailstogivesuchnotification,thetenderofdocumentstotheNominatedBankorIssuingBank,thatconformtotheCreditandtonotyetacceptedamendment(s),willbedeemedtobenotificationofacceptancebytheBeneficiaryofsuchamendment(s)andasofthatmomenttheCreditwillbeamended.
iv.Partialacceptanceofamendmentscontainedinoneandthesameadviceofamendmentisnotallowedandconsequentlywillnotbegivenanyeffect.
ARTICLE10
TypesofCredit
A.AllCreditsmustclearlyindicatewhethertheyareavailablebysightpayment,bydeferredpayment,byacceptanceorbynegotiation.
B.
i.UnlesstheCreditstipulatesthatitisavailableonlywiththeIssuingBank,allCreditsmustnominatethebank(the"NominatedBank")whichisauthorizedtopay,toincuradeferredpaymentundertaking,toacceptDraft(s)ortonegotiate.InafreelynegotiableCredit,anybankisaNominatedBank.
PresentationofdocumentsmustbemadetotheIssuingBankortheConfirmingBank,ifany,oranyotherNominatedBank.
ii.NegotiationmeansthegivingofvalueforDraft(s)and/ordocument(s)bythebankauthorizedtonegotiate.Mereexaminationofthedocumentswithoutgivingofvaluedoesnotconstituteanegotiation.
C.UnlesstheNominatedBankistheConfirmingBank,nominationbytheIssuingBankdoesnotconstituteanyundertakingbytheNominatedBanktopay,toincuradeferredpaymentundertaking,toacceptDraft(s),ortonegotiate.ExceptwhereexpresslyagreedtobytheNominatedBankandsocommunicatedtotheBeneficiary,theNominatedBank’sreceiptofand/orexaminationand/orforwardingofthedocumentsdoesnotmakethatbankliabletopay,toincuradeferredpaymentundertaking,toacceptDraft(s),ortonegotiate.
D.Bynominatinganotherbank,orbyallowingfornegotiationbyanybank,orbyauthorizingorrequestinganotherbanktoadditsconfirmation,theIssuingBankauthorizessuchbanktopay,acceptDraft(s)ornegotiateasthecasemaybe,againstdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCreditandundertakestoreimbursesuchbankinaccordancewiththeprovisionsoftheseArticles.
ARTICLE11
TeletransmittedandPreAdvisedCredit
A.
i.WhenanIssuingBankinstructsanAdvisingBankbyanauthenticatedteletransmissiontoadviseaCreditoranamendmenttoaCredit,theteletransmissionwillbedeemedtobetheoperativeCreditinstrumentortheoperativeamendment,andnomailconfirmationshouldbesent.Shouldamailconfirmationneverthelessbesent,itwillhavenoeffectandtheAdvisingBankwillhavenoobligationtochecksuchmailconfirmationagainsttheoperativeCreditinstrumentortheoperativeamendmentreceivedbyteletransmission.
ii.Iftheteletransmissionstates"fulldetailstofollow"(orwordsofsimilareffect)orstatesthatthemailconfirmationistobetheoperativeCreditinstrumentortheoperativeamendment,thentheteletransmissionwillnotbedeemedtobetheoperativeCreditinstrumentortheoperativeamendment.TheIssuingBankmustforwardtheoperativeCreditinstrumentortheoperativeamendmenttosuchAdvisingBankwithoutdelay.
B.IfabankusestheservicesofanAdvisingBanktohavetheCreditadvisedtotheBeneficiary,itmustalsousetheservicesofthesamebankforadvisinganamendment(s).
C.ApreliminaryadviceoftheissuanceoramendmentofanirrevocableCredit(preadvice),shallonlybegivenbyanIssuingBankifsuchbankispreparedtoissuetheoperativeCreditinstrumentortheoperativeamendmentthereto.UnlessotherwisestatedinsuchpreliminaryadvicebytheIssuingBank,anIssuingBankhavinggivensuchpreadviceshallbeirrevocablycommittedtoissueoramendtheCredit,intermsnotinconsistentwiththepreadvice,withoutdelay.
ARTICLE12
IncompleteorUnclearInstructions
Ifincompleteorunclearinstructionsarereceivedtoadvise,confirmoramendaCredit,thebankrequestedtoactonsuchinstructionsmaygivepreliminarynotificationtotheBeneficiaryforinformationonlyandwithoutresponsibility.ThispreliminarynotificationshouldstateclearlythatthenotificationisprovidedforinformationonlyandwithouttheresponsibilityoftheAdvisingBank.Inanyevent,theAdvisingBankmustinformtheIssuingBankoftheactiontakenandrequestittoprovidethenecessaryinformation.
TheIssuingBankmustprovidethenecessaryinformationwithoutdelay.TheCreditwillbeadvised,confirmedoramended,onlywhencompleteandclearinstructionshavebeenreceivedandiftheAdvisingBankisthenpreparedtoactontheinstructions.
ARTICLE13
StandardforExaminationofDocuments
A.BanksmustexaminealldocumentsstipulatedintheCreditwithreasonablecare,toascertainwhetherornottheyappear,ontheirface,tobeincompliancewiththetermsandconditionsoftheCredit.ComplianceofthestipulateddocumentsontheirfacewiththetermsandconditionsoftheCredit,shallbedeterminedbyinternationalstandardbankingpracticeasreflectedintheseArticles.DocumentswhichappearontheirfacetobeinconsistentwithoneanotherwillbeconsideredasnotappearingontheirfacetobeincompliancewiththetermsandconditionsoftheCredit.
DocumentsnotstipulatedintheCreditwillnotbeexaminedbybanks.Iftheyreceivesuchdocuments,theyshallreturnthemtothepresenterorpassthemonwithoutresponsibility.
B.TheIssuingBank,theConfirmingBank,ifany,oraNominatedBankactingontheirbehalf,shalleachhaveareasonabletime,nottoexceedsevenbankingdaysfollowingthedayofreceiptofthedocuments,toexaminethedocumentsanddeterminewhethertotakeuporrefusethedocumentsandtoinformthepartyfromwhichitreceivedthedocumentsaccordingly.
C.IfaCreditcontainsconditionswithoutstatingthedocument(s)tobepresentedincompliancetherewith,bankswilldeemsuchconditionsasnotstatedandwilldisregardthem.
ARTICLE14
DiscrepantDocumentsandNotice
A.WhentheIssuingBankauthorizesanotherbanktopay,incuradeferredpaymentundertaking,acceptDraft(s),ornegotiateagainstdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit,theIssuingBankandtheConfirmingBank,ifany,arebound:
i.toreimbursetheNominatedBankwhichhaspaid,incurredadeferredpaymentundertaking,acceptedDraft(s),ornegotiated,
ii.totakeupthedocuments.
B.UponreceiptofthedocumentstheIssuingBankand/orConfirmingBank,ifany,oraNominatedBankactingontheirbehalf,mustdetermineonthebasisofthedocumentsalonewhetherornottheyappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit.IfthedocumentsappearontheirfacenottobeincompliancewiththetermsandconditionsoftheCredit,suchbanksmayrefusetotakeupthedocuments.
C.IftheIssuingBankdeterminesthatthedocumentsappearontheirfacenottobeincompliancewiththetermsandconditionsoftheCredit,itmayinitssolejudgmentapproachtheApplicantforawaiverofthediscrepancy(ies).Thisdoesnot,however,extendtheperiodmentionedinsubArticle13(b).
D.
i.IftheIssuingBankand/orConfirmingBank,ifany,oraNominatedBankactingontheirbehalf,decidestorefusethedocuments,itmustgivenoticetothateffectbytelecommunicationor,ifthatisnotpossible,byotherexpeditiousmeans,withoutdelaybutnolaterthanthecloseoftheseventhbankingdayfollowingthedayofreceiptofthedocuments.Suchnoticeshallbegiventothebankfromwhichitreceivedthedocuments,ortotheBeneficiary,ifitreceivedthedocumentsdirectlyfromhim.
ii.Suchnoticemuststatealldiscrepanciesinrespectofwhichthebankrefusesthedocumentsandmustalsostatewhetheritisholdingthedocumentsatthedisposalof,orisreturningthemto,thepresenter.
iii.TheIssuingBankand/orConfirmingBank,ifany,shallthenbeentitledtoclaimfromtheremittingbankrefund,withinterest,ofanyreimbursementwhichhasbeenmadetothatbank.
E.IftheIssuingBankand/orConfirmingBank,ifany,failstoactinaccordancewiththeprovisionsofthisArticleand/orfailstoholdthedocumentsatthedisposalof,orreturnthemtothepresenter,theIssuingBankand/orConfirmingBank,ifany,shallbeprecludedfromclaimingthatthedocumentsarenotincompliancewiththetermsandconditionsoftheCredit.
F.IftheremittingbankdrawstheattentionoftheIssuingBankand/orConfirmingBank,ifany,toanydiscrepancy(ies)inthedocument(s)oradvisessuchbanksthatithaspaid,incurredadeferredpaymentundertaking,acceptedDraft(s)ornegotiatedunderreserveoragainstanindemnityinrespectofsuchdiscrepancy(ies),theIssuingBankand/orConfirmingBank,ifany,shallnotbetherebyrelievedfromanyoftheirobligationsunderanyprovisionofthisArticle.Suchreserveorindemnityconcernsonlytherelationsbetweentheremittingbankandthepartytowardswhomthereservewasmade,orfromwhom,oronwhosebehalf,theindemnitywasobtained.
ARTICLE15
DisclaimeronEffectivenessofDocuments
Banksassumenoliabilityorresponsibilityfortheform,sufficiency,accuracy,genuineness,falsificationorlegaleffectofanydocument(s),orforthegeneraland/orparticularconditionsstipulatedinthedocument(s)orsuperimposedthereon;nordotheyassumeanyliabilityorresponsibilityforthedescription,quantity,weight,quality,condition,packing,delivery,valueorexistenceofthegoodsrepresentedbyanydocument(s),orforthegoodfaithoractsand/oromissions,solvency,performanceorstandingoftheconsignors,thecarriers,theforwarders,theconsigneesortheinsurersofthegoods,oranyotherpersonwhomsoever.
ARTICLE16
DisclaimerontheTransmissionofMessages
Banksassumenoliabilityorresponsibilityfortheconsequencesarisingoutofdelayand/orlossintransitofanymessage(s),letter(s)ordocument(s),orfordelay,mutilationorothererror(s)arisinginthetransmissionofanytelecommunication.Banksassumenoliabilityorresponsibilityforerrorsintranslationand/orinterpretationoftechnicalterms,andreservetherighttotransmitCredittermswithouttranslatingthem.
ARTICLE17
ForceMajeure
BanksassumenoliabilityorresponsibilityfortheconsequencesarisingoutoftheinterruptionoftheirbusinessbyActsofGod,riots,civilcommotions,insurrections,warsoranyothercausesbeyondtheircontrol,orbyanystrikesorlockouts.Unlessspecificallyauthorized,bankswillnot,uponresumptionoftheirbusiness,pay,incuradeferredpaymentundertaking,acceptDraft(s)ornegotiateunderCreditswhichexpiredduringsuchinterruptionoftheirbusiness.
ARTICLE18
DisclaimerforActsofanInstructedParty
A.BanksutilizingtheservicesofanotherbankorotherbanksforthepurposeofgivingeffecttotheinstructionsoftheApplicantdosofortheaccountandattheriskofsuchApplicant.
B.Banksassumenoliabilityorresponsibilityshouldtheinstructionstheytransmitnotbecarriedout,eveniftheyhavethemselvestakentheinitiativeinthechoiceofsuchotherbank(s).
C.
i.Apartyinstructinganotherpartytoperformservicesisliableforanycharges,includingcommissions,fees,costsorexpensesincurredbytheinstructedpartyinconnectionwithitsinstructions.
ii.Whereacreditstipulatesthatsuchchargesarefortheaccountofapartyotherthantheinstructingparty,andchargescannotbecollected,theinstructingpartyremainsultimatelyliableforthepaymentthereof.
D.TheApplicantshallbeboundbyandliabletoindemnifythebanksagainstallobligationsandresponsibilitiesimposedbyforeignlawsandusages.
ARTICLE19
BanktoBankReimbursementArrangements
A.IfanIssuingBankintendsthatthereimbursementtowhichapaying,acceptingornegotiatingbankisentitled,shallbeobtainedbysuchbank(the"ClaimingBank"),claimingonanotherparty(the"ReimbursingBank"),itshallprovidesuchReimbursingBankingoodtimewiththeproperinstructionsorauthorizationtohonorsuchreimbursementclaims.
B.IssuingBanksshallnotrequireaClaimingBanktosupplyacertificateofcompliancewiththetermsandconditionsoftheCredittotheReimbursingBank.
C.AnIssuingBankshallnotberelievedfromanyofitsobligationstoprovidereimbursementifandwhenreimbursementisnotreceivedbytheClaimingBankfromtheReimbursingBank.
D.TheIssuingBankshallberesponsibletotheClaimingBankforanylossofinterestifreimbursementisnotprovidedbytheReimbursingBankonfirstdemand,orasotherwisespecifiedintheCredit,ormutuallyagreed,asthecasemaybe.
E.TheReimbursingBank’schargesshouldbefortheaccountoftheIssuingBank.However,incaseswherethechargesarefortheaccountofanotherparty,itistheresponsibilityoftheIssuingBanktosoindicateintheoriginalCreditandinthereimbursementauthorization.IncaseswheretheReimbursingBank’schargesarefortheaccountofanotherpartytheyshallbecollectedfromtheClaimingBankwhentheCreditisdrawnunder.IncaseswheretheCreditisnotdrawnunder,theReimbursingBank’schargesremaintheobligationoftheIssuingBank.
DOCUMENTS
ARTICLE20
AmbiguityastotheIssuersofDocuments
A.Termssuchas"firstclass","wellknown","qualified","independent","official","competent","local",andthelike,shallnotbeusedtodescribetheissuersofanydocument(s)tobepresentedunderaCredit.IfsuchtermsareincorporatedintheCredit,bankswillaccepttherelativedocument(s)aspresented,providedthatitappearsonitsfacetobeincompliancewiththeothertermsandconditionsoftheCreditandnottohavebeenissuedbytheBeneficiary.
B.UnlessotherwisestipulatedintheCredit,bankswillalsoacceptasanoriginaldocument(s),adocument(s)producedorappearingtohavebeenproduced:i.byreprographic,automatedorcomputerizedsystems;ii.ascarboncopies;providedthatitismarkedasoriginaland,wherenecessary,appearstobesigned.
Adocumentmaybesignedbyhandwriting,byfacsimilesignature,byperforatedsignature,bystamp,bysymbol,orbyanyothermechanicalorelectronicmethodofauthentication.
C.
i.UnlessotherwisestipulatedintheCredit,bankswillacceptasacopy(ies),adocument(s)eitherlabeledcopyornotmarkedasanoriginalacopy(ies)neednotbesigned.
ii.Creditsthatrequiremultipledocument(s)suchas"duplicate","twofold","twocopies"andthelike,willbesatisfiedbythepresentationofoneoriginalandtheremainingnumberincopiesexceptwherethedocumentitselfindicatesotherwise.
D.UnlessotherwisestipulatedintheCredit,aconditionunderaCreditcallingforadocumenttobeauthenticated,validated,legalized,visaed,certifiedorindicatingasimilarrequirement,willbesatisfiedbyanysignature,mark,stamporlabelonsuchdocumentthatonitsfaceappearstosatisfytheabovecondition.
ARTICLE21
UnspecifiedIssuersorContentsofDocuments
Whendocumentsotherthantransportdocuments,insurancedocumentsandcommercialinvoicesarecalledfor,theCreditshouldstipulatebywhomsuchdocumentsaretobeissuedandtheirwordingordatacontent.IftheCreditdoesnotsostipulate,bankswillacceptsuchdocumentsaspresented,providedthattheirdatacontentisnotinconsistentwithanyotherstipulateddocumentpresented.
ARTICLE22
IssuanceDateofDocumentsVs.CreditDate
UnlessotherwisestipulatedintheCredit,bankswillacceptadocumentbearingadateofissuancepriortothatoftheCredit,subjecttosuchdocumentbeingpresentedwithinthetimelimitssetoutintheCreditandintheseArticles.
ARTICLE23
Marine/OceanBillofLading
A.IfaCreditcallsforabillofladingcoveringaporttoportshipment,bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecarrierandtohavebeensignedorotherwiseauthenticatedby:
thecarrieroranamedagentfororonbehalfofthecarrier,or
themasteroranamedagentfororonbehalfofthemaster.
Anysignatureorauthenticationofthecarrierorthemastermustbeidentifiedascarrierormaster,asthecasemaybe.Anagentsigningorauthenticatingforthecarrierormastermustalsoindicatethenameandthecapacityoftheparty,i.e.carrierormaster,onwhosebehalfthatagentisacting,
and
ii.indicatesthatthegoodshavebeenloadedonboard,orshippedonanamedvessel.
Loadingonboardorshipmentonanamedvesselmaybeindicatedbypreprintedwordingonthebillofladingthatthegoodshavebeenloadedonboardanamedvesselorshippedonanamedvessel,inwhichcasethedateofissuanceofthebillofladingwillbedeemedtobethedateofloadingonboardandthedateofshipment.
Inallothercasesloadingonboardanamedvesselmustbeevidencedbyanotationonthebillofladingwhichgivesthedateonwhichthegoodshavebeenloadedonboard,inwhichcasethedateoftheboardnotationwillbedeemedtobethedateofshipment.
Ifthebillofladingcontainstheindication"intendedvessel",orsimilarqualificationinrelationtothevessel,loadingonboardanamedvesselmustbeevidencedby
anonboardnotationonthebillofladingwhich,inadditiontothedateonwhichthegoodshavebeenloadedonboard,alsoincludesthenameofthevesselonwhichthegoodshavebeenloaded,eveniftheyhavebeenloadedonthevesselnamedasthe"intendedvessel".
Ifthebillofladingindicatesaplaceofreceiptortakinginchargedifferentfromtheportofloading,theonboardnotationmustalsoincludetheportofloadingstipulatedintheCreditandthenameofthevesselonwhichthegoodshavebeenloaded,eveniftheyhavebeenloadedonthevesselnamedinthebilloflading.Thisprovisionalsoapplieswheneverloadingonboardthevesselisindicatedbypreprintedwordingonthebilloflading,
and
iii.indicatestheportofloadingandtheportofdischargestipulatedintheCredit,notwithstandingthatit:
a.indicatesaplaceoftakinginchargedifferentfromtheportofloading,and/oraplaceoffinaldestinationdifferentfromtheportofdischarge,and/or
b.containstheindication"intended"orsimilarqualificationinrelationtotheportofloadingand/orportofdischarge,aslongasthedocumentalsostatestheportsofloadingand/ordischargestipulatedintheCredit,
and
iv.consistsofasoleoriginalbillofladingor,ifissuedinmorethanoneoriginal,thefullsetassoissued,and
v.appearstocontainallofthetermsandconditionsofcarriage,orsomeofsuchtermsandconditionsbyreferencetoasourceordocumentotherthanthebilloflading(shortform/blankbackbilloflading);bankswillnotexaminethecontentsofsuchtermsandconditions,
and
vi.containsnoindicationthatitissubjecttoacharterpartyand/ornoindicationthatthecarryingvesselispropelledbysailonly,and
vii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.ForthepurposeofthisArticle,transshipmentmeansunloadingandreloadingfromonevesseltoanothervesselduringthecourseofoceancarriagefromtheportofloadingtotheportofdischargestipulatedintheCredit.
C.UnlesstransshipmentisprohibitedbythetermsoftheCredit,bankswillacceptabillofladingwhichindicatesthatthegoodswillbetransshipped,providedthattheentireoceancarriageiscoveredbyoneandthesamebilloflading.
D.EveniftheCreditprohibitstransshipment,bankswillacceptabillofladingwhich:
i.indicatesthatthetransshipmentwilltakeplaceaslongastherelevantcargoisshippedinContainer(s),Trailer(s)and/or"LASH"barge(s)asevidencedbythebilloflading,providedthattheentireoceancarriageiscoveredbyoneandthesamebilloflading,
and/or
ii.incorporatesclausesstatingthatthecarrierreservestherighttotransship.
ARTICLE24
NonNegotiableSeaWaybill
A.IfaCreditcallsforanonnegotiableseawaybillcoveringaporttoportshipment,bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecarrierandtohavebeensignedorotherwiseauthenticatedby:
thecarrieroranamedagentfororonbehalfofthecarrier,or
themasteroranamedagentfororonbehalfofthemaster,
Anysignatureorauthenticationofthecarrierormastermustbeidentifiedascarrierormaster,asthecasemaybe.Anagentsigningorauthenticatingforthecarrierormastermustalsoindicatethenameandthecapacityoftheparty,i.e.carrierormaster,onwhosebehalfthatagentisacting,
and
ii.indicatesthatthegoodshavebeenloadedonboard,orshippedonanamedvessel.
Loadingonboardorshipmentonanamedvesselmaybeindicatedbypreprintedwordingonthenonnegotiableseawaybillthatthegoodshavebeenloadedonboardanamedvesselorshippedonanamedvessel,inwhichcasethedateofissuanceofthenonnegotiableseawaybillwillbedeemedtobethedateofloadingonboardandthedateofshipment.
Inallothercasesloadingonboardanamedvesselmustbeevidencedbyanotationonthenonnegotiableseawaybillwhichgivesthedateonwhichthegoodshavebeenloadedonboard,inwhichcasethedateoftheonboardnotationwillbedeemedtobethedateofshipment.
Ifthenonnegotiableseawaybillcontainstheindication"intendedvessel",orsimilarqualificationinrelationtothevessel,loadingonboardanamedvesselmustbeevidencedbyanonboardnotationonthenonnegotiableseawaybillwhich,inadditiontothedateonwhichthegoodshavebeenloadedonboard,includesthenameofthevesselonwhichthegoodshavebeenloaded,eveniftheyhavebeenloadedonthevesselnamedasthe"intendedvessel".
Ifthenonnegotiableseawaybillindicatesaplaceofreceiptortakinginchargedifferentfromtheportofloading,theonboardnotationmustalsoincludetheportofloadingstipulatedintheCreditandthenameofthevesselonwhichthegoodshavebeenloaded,eveniftheyhavebeenloadedonavesselnamedinthenonnegotiableseawaybill.Thisprovisionalsoapplieswheneverloadingonboardthevesselisindicatedbypreprintedwordingonthenonnegotiableseawaybill,
and
iii.indicatestheportofloadingandtheportofdischargestipulatedintheCredit,notwithstandingthatit:
a.indicatesaplaceoftakinginchargedifferentfromtheportofloading,and/oraplaceoffinaldestinationdifferentfromtheportofdischarge,
and/or
b.containstheindication"intended"orsimilarqualificationinrelationtotheportofloadingand/orportofdischarge,aslongasthedocumentalsostatestheportsofloadingand/ordischargestipulatedintheCredit,
and
iv.consistsofasoleoriginalnonnegotiableseawaybill,orifissuedinmorethanoneoriginal,thefullsetassoissued,
and
v.appearstocontainallofthetermsandconditionsofcarriage,orsomeofsuchtermsandconditionsbyreferencetoasourceordocumentotherthanthenonnegotiableseawaybill(shortform/blankbacknonnegotiableseawaybill);bankswillnotexaminethecontentsofsuchtermsandconditions,
and
vi.containsnoindicationthatitissubjecttoacharterpartyand/ornoindicationthatthecarryingvesselispropelledbysailonly,
and
vii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.ForthepurposeofthisArticle,transshipmentmeansunloadingandreloadingfromonevesseltoanothervesselduringthecourseofoceancarriagefromtheportofloadingtotheportofdischargestipulatedintheCredit.
C.UnlesstransshipmentisprohibitedbythetermsoftheCredit,bankswillacceptanonnegotiableseawaybillwhichindicatesthatthegoodswillbetransshipped,providedthattheentireoceancarriageiscoveredbyoneandthesamenonnegotiableseawaybill.
D.EveniftheCreditprohibitstransshipment,bankswillacceptanonnegotiableseawaybillwhich:
i.indicatesthattransshipmentwilltakeplaceaslongastherelevantcargoisshippedinContainer(s),Trailer(s)and/or"LASH"barge(s)asevidencedbythenonnegotiableseawaybill,providedthattheentireoceancarriageiscoveredbyoneandthesamenonnegotiableseawaybill,
and/or
ii.incorporatesclausesstatingthatthecarrierreservestherighttotransship.
ARTICLE25
CharterPartyBillofLading
A.IfaCreditcallsfororpermitsacharterpartybilloflading,bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.containsanyindicationthatitissubjecttoacharterparty,
and
ii.appearsonitsfacetohavebeensignedorotherwiseauthenticatedby:
themasteroranamedagentfororonbehalfofthemaster,or
theowneroranamedagentfororonbehalfoftheowner.
Anysignatureorauthenticationofthemasterorownermustbeidentifiedasmasterorownerasthecasemaybe.Anagentsigningorauthenticatingforthemasterorownermustalsoindicatethenameandthecapacityoftheparty,i.e.masterorowner,onwhosebehalfthatagentisacting,and
iii.doesordoesnotindicatethenameofthecarrier,
and
iv.indicatesthatthegoodshavebeenloadedonboardorshippedonanamedvessel.
Loadingonboardorshipmentonanamedvesselmaybeindicatedbypreprintedwordingonthebillofladingthatthegoodshavebeenloadedonboardanamedvesselorshippedonanamedvessel,inwhichcasethedateofissuanceofthebillofladingwillbedeemedtobethedateofloadingonboardandthedateofshipment.
Inallothercasesloadingonboardanamedvesselmustbeevidencedbyanotationonthebillofladingwhichgivesthedateonwhichthegoodshavebeenloadedonboard,inwhichcasethedateoftheonboardnotationwillbedeemedtobethedateofshipment,and
v.indicatestheportofloadingandtheportofdischargestipulatedintheCredit,
and
vi.consistsofasoleoriginalbillofladingor,ifissuedinmorethanoneoriginal,thefullsetassoissued,
and
vii.containsnoindicationthatthecarryingvesselispropelledbysailonly,
and
viii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.EveniftheCreditrequiresthepresentationofacharterpartycontractinconnectionwithacharterpartybilloflading,bankswillnotexaminesuchcharterpartycontract,butwillpassitonwithoutresponsibilityontheirpart.
Article26
MultimodalTransportDocument
A.IfaCreditcallsforatransportdocumentcoveringatleasttwodifferentmodesoftransport(multimodaltransport),bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecarrierormultimodaltransportoperatorandtohavebeensignedorotherwiseauthenticatedby:
thecarrierormultimodaltransportoperatororanamedagentfororonbehalfofthecarrierormultimodaltransportoperator,or
themasteroranamedagentfororonbehalfofthemaster.
Anysignatureorauthenticationofthecarrier,multimodaltransportoperatorormastermustbeidentifiedascarrier,multimodaltransportoperatorormaster,asthecasemaybe.Anagentsigningorauthenticatingforthecarrier,multimodaltransportoperatorormastermustalsoindicatethenameandthecapacityoftheparty,i.e.carrier,multimodaltransportoperatorormaster,onwhosebehalfthattheagentisacting,
and
ii.indicatesthatthegoodshavebeendispatched,takeninchargeorloadedonboard.
Dispatch,takinginchargeorloadingonboardmaybeindicatedbywordingtothateffectonthemultimodaltransportdocumentandthedateofissuancewillbedeemedtobethedateofdispatch,takinginchargeorloadingonboardandthedateofshipment.However,ifthedocumentindicates,bystamporotherwise,adateofdispatch,takinginchargeorloadingonboard,suchdatewillbedeemedtobethedateofshipment,
and
iii.a.indicatestheplaceoftakinginchargestipulatedintheCreditwhichmaybedifferentfromtheport,airportorplaceofloading,andtheplaceoffinaldestinationstipulatedintheCreditwhichmaybedifferentfromtheport,airportorplaceofdischarge,
and/or
b.containstheindication"intended"orsimilarqualificationinrelationtothevesseland/orportofloadingand/orportofdischarge,
and
iv.consistsofasoleoriginalmultimodaltransportdocumentor,ifissuedinmorethanoneoriginal,thefullsetassoissued,
and
v.appearstocontainallofthetermsandconditionsofcarriage,orsomeofsuchtermsandconditionsbyreferencetoasourceordocumentotherthanthemultimodaltransportdocument(shortform/blankbackmultimodaltransportdocument);bankswillnotexaminethecontentsofsuchtermsandconditions,
and
vi.containsnoindicationthatitissubjecttoacharterpartyand/ornoindicationthatthecarryingvesselispropelledbysailonly,and
vii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.EveniftheCreditprohibitstransshipment,bankswillacceptamultimodaltransportdocumentwhichindicatesthattransshipmentwillormaytakeplace,providedthattheentirecarriageiscoveredbyoneandthesamemultimodaltransportdocument.
ARTICLE27
AirTransportDocument
A.IfaCreditcallsforanairtransportdocument,bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecarrierandtohavebeensignedorotherwiseauthenticatedby:
thecarrier,or
anamedagentfororonbehalfofthecarrier.
Anysignatureorauthenticationofthecarriermustbeidentifiedascarrier.Anagentsigningorauthenticatingforthecarriermustalsoindicatethenameandthecapacityoftheparty,i.e.carrier,onwhosebehalfthatagentisacting,
and
ii.indicatesthatthegoodshavebeenacceptedforcarriage,
and
iii.wheretheCreditcallsforanactualdateofdispatch,indicatesaspecificnotationofsuchdate,thedateofdispatchsoindicatedontheairtransportdocumentwillbedeemedtobethedateofshipment.
ForthepurposeofthisArticle,theinformationappearingintheboxontheairtransportdocument(marked"ForCarrierUseOnly"orsimilarexpression)relativetotheflightnumberanddatewillnotbeconsideredasaspecificnotationofsuchdateofdispatch.
Inallothercases,thedateofissuanceoftheairtransportdocumentwillbedeemedtobethedateofshipment,
and
iv.indicatestheairportofdepartureandtheairportofdestinationstipulatedintheCredit,
and
v.appearstobetheoriginalforconsignor/shippereveniftheCreditstipulatesafullsetoforiginals,orsimilarexpressions,
and
vi.appearstocontainallofthetermsandconditionsofcarriage,orsomeofsuchtermsandconditions,byreferencetoasourceordocumentotherthantheairtransportdocument;bankswillnotexaminethecontentsofsuchtermsandconditions,
and
vii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.ForthepurposeofthisArticle,transshipmentmeansunloadingandreloadingfromoneaircrafttoanotheraircraftduringthecourseofcarriagefromtheairportofdeparturetotheairportofdestinationstipulatedintheCredit.
C.EveniftheCreditprohibitstransshipment,bankswillacceptanairtransportdocumentwhichindicatesthattransshipmentwillormaytakeplace,providedthattheentirecarriageiscoveredbyoneandthesameairtransportdocument.
ARTICLE28
Road,RailorinlandWaterwaytransportDocuments
A.IfaCreditcallsforaroad,rail,orinlandwaterwaytransportdocument,bankswill,unlessotherwisestipulatedintheCredit,acceptadocumentofthetypecalledfor,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecarrierandtohavebeensignedorotherwiseauthenticatedbythecarrieroranamedagentfororonbehalfofthecarrierand/ortobearareceptionstamporotherindicationofreceiptbythecarrieroranamedagentfororonbehalfofthecarrier.
Anysignature,authentication,receptionstamporotherindicationofreceiptofthecarrier,mustbeidentifiedonitsfaceasthatofthecarrier.Anagentsigningorauthenticatingforthecarriermustalsoindicatethenameandthecapacityoftheparty,i.e.carrier,onwhosebehalfthatagentisacting,
and
ii.indicatesthatthegoodshavebeenreceivedforshipment,dispatchorcarriageorwordingtothiseffect.Thedateofissuancewillbedeemedtobethedateofshipmentunlessthetransportdocumentcontainsareceptionstamp,inwhichcasethedateofthereceptionstampwillbedeemedtobethedateofshipment,and
iii.indicatestheplaceofshipmentandtheplaceofdestinationstipulatedintheCredit,
and
iv.inallotherrespectsmeetsthestipulationsoftheCredit.
B.Intheabsenceofanyindicationonthetransportdocumentastothenumbersissued,bankswillacceptthetransportdocument(s)presentedasconstitutingafullset.Bankswillacceptasoriginal(s)thetransportdocument(s)whethermarkedasoriginal(s)ornot.
C.ForthepurposeofthisArticle,transshipmentmeansunloadingandreloadingfromonemeansofconveyancetoanothermeansofconveyance,indifferentmodesoftransport,duringthecourseofcarriagefromtheplaceofshipmenttotheplaceofdestinationstipulatedintheCredit.
D.EveniftheCreditprohibitstransshipment,bankswillacceptaroad,rail,orinlandwaterwaytransportdocumentwhichindicatesthattransshipmentwillormaytakeplace,providedthattheentirecarriageiscoveredbyoneandthesametransportdocumentandwithinthesamemodeoftransport.
ARTICLE29
CourierandPostReceipts
A.IfaCreditcallsforapostreceiptorcertificateofposting,bankswill,unlessotherwisestipulatedintheCredit,acceptapostreceiptorcertificateofpostingwhich:
i.appearsonitsfacetohavebeenstampedorotherwiseauthenticatedanddatedintheplacefromwhichtheCreditstipulatesthegoodsaretobeshippedordispatchedandsuchdatewillbedeemedtobethedateofshipmentordispatch,
and
ii.inallotherrespectsmeetsthestipulationsoftheCredit.
B.IfaCreditcallsforadocumentissuedbyacourierorexpediteddeliveryserviceevidencingreceiptofthegoodsfordelivery,bankswill,unlessotherwisestipulatedintheCredit,acceptadocument,howevernamed,which:
i.appearsonitsfacetoindicatethenameofthecourier/service,andtohavebeenstamped,signedorotherwiseauthenticatedbysuchnamedcourier/service(unlesstheCreditspecificallycallsforadocumentissuedbyanamedCourier/Service,bankswillacceptadocumentissuedbyanyCourier/Service),
and
ii.indicatesadateofpickuporofreceiptorwordingtothiseffect,suchdatebeingdeemedtobethedateofshipmentordispatch,
and
iii.inallotherrespectsmeetsthestipulationsoftheCredit.
ARTICLE30
TransportDocumentsissuedbyFreightForwarders
UnlessotherwiseauthorizedintheCredit,bankswillonlyacceptatransportdocumentissuedbyafreightforwarderifitappearsonitsfacetoindicate:
i.thenameofthefreightforwarderasacarrierormultimodaltransportoperatorandtohavebeensignedorotherwiseauthenticatedbythefreightforwarderascarrierormultimodaltransportoperator,
or
ii.thenameofthecarrierormultimodaltransportoperatorandtohavebeensignedorotherwiseauthenticatedbythefreightforwarderasanamedagentfororonbehalfofthecarrierormultimodaltransportoperator.
ARTICLE31
"OnDeck","Shipper’sLoadandCount",NameofConsignor
UnlessotherwisestipulatedintheCredit,bankswillacceptatransportdocumentwhich:
i.doesnotindicate,inthecaseofcarriagebyseaorbymorethanonemeansofconveyanceincludingcarriagebysea,thatthegoodsareorwillbeloadedondeck.Nevertheless,bankswillacceptatransportdocumentwhichcontainsaprovisionthatthegoodsmaybecarriedondeck,providedthatitdoesnotspecificallystatethattheyareorwillbeloadedondeck,
and/or
ii.bearsaclauseonthefacethereofsuchas"shipper’sloadandcount"or"saidbyshippertocontain"orwordsofsimilareffect,
and/or
iii.indicatesastheconsignorofthegoodsapartyotherthantheBeneficiaryoftheCredit.
ARTICLE32
CleanTransportDocuments
A.Acleantransportdocumentisonewhichbearsnoclauseornotationwhichexpresslydeclaresadefectiveconditionofthegoodsand/orthepackaging.
B.BankswillnotaccepttransportdocumentsbearingsuchclausesornotationsunlesstheCreditexpresslystipulatestheclausesornotationswhichmaybeaccepted.
C.BankswillregardarequirementinaCreditforatransportdocumenttobeartheclause"cleanonboard"ascompliedwithifsuchtransportdocumentmeetstherequirementsofthisArticleandofArticles23,24,25,26,27,28or30.
ARTICLE33
FreightPayable/PrepaidTransportDocuments
A.UnlessotherwisestipulatedintheCredit,orinconsistentwithanyofthedocumentspresentedundertheCredit,bankswillaccepttransportdocumentsstatingthatfreightortransportationcharges(hereafterreferredtoas"freight")havestilltobepaid.
B.IfaCreditstipulatesthatthetransportdocumenthastoindicatethatfreighthasbeenpaidorprepaid,bankswillacceptatransportdocumentonwhichwordsclearlyindicatingpaymentorprepaymentoffreightappearbystamporotherwise,oronwhichpaymentorprepaymentoffreightisindicatedbyothermeans.IftheCreditrequirescourierchargestobepaidorprepaidbankswillalsoacceptatransportdocumentissuedbyacourierorexpediteddeliveryserviceevidencingthatthecourierchargesarefortheaccountofapartyotherthantheconsignee.
C.Thewords"freightprepayable"or"freighttobeprepaid"orwordsofsimilareffect,ifappearingontransportdocuments,willnotbeacceptedasconstitutingevidenceofthepaymentoffreight.
D.Bankswillaccepttransportdocumentsbearingreferencebystamporotherwisetocostsadditionaltothefreight,suchascostsof,ordisbursementsincurredinconnectionwith,loading,unloadingorsimilaroperations,unlesstheconditionsoftheCreditspecificallyprohibitsuchreference.
ARTICLE34
InsuranceDocuments
A.Insurancedocumentsmustappearontheirfacetobeissuedandsignedbyinsurancecompaniesorunderwritersortheiragents.
B.Iftheinsurancedocumentindicatesthatithasbeenissuedinmorethanoneoriginal,alltheoriginalsmustbepresentedunlessotherwiseauthorizedintheCredit.
C.Covernotesissuedbybrokerswillnotbeaccepted,unlessspecificallyauthorizedintheCredit.
D.UnlessotherwisestipulatedintheCredit,bankswillacceptaninsurancecertificateoradeclarationunderanopencoverpresignedbyinsurancecompaniesorunderwritersortheiragents.IfaCreditspecificallycallsforaninsurancecertificateoradeclarationunderanopencover,bankswillaccept,inlieuthereof,aninsurancepolicy.
E.UnlessotherwisestipulatedintheCredit,orunlessitappearsfromtheinsurancedocumentthatthecoveriseffectiveatthelatestfromthedateofloadingonboardordispatchortakinginchargeofthegoods,bankswillnotacceptaninsurancedocumentwhichbearsadateofissuancelaterthanthedateofloadingonboardordispatchortakinginchargeasindicatedinsuchtransportdocument.
F.
i.UnlessotherwisestipulatedintheCredit,theinsurancedocumentmustbeexpressedinthesamecurrencyastheCredit.
ii.UnlessotherwisestipulatedintheCredit,theminimumamountforwhichtheinsurancedocumentmustindicatetheinsurancecovertohavebeeneffectedistheCIF(cost,insuranceandfreight(..."namedportofdestination"))orCIP(carriageandinsurancepaidto(..."namedplaceofdestination"))valueofthegoods,asthecasemaybe,plus10%,butonlywhentheCIForCIPvaluecanbedeterminedfromthedocumentsontheirface.Otherwise,bankswillacceptassuchminimumamount110%oftheamountforwhichpayment,acceptanceornegotiationisrequestedundertheCredit,or110%ofthegrossamountoftheinvoice,whicheveristhegreater.
ARTICLE35
TypeofInsuranceCover
A.Creditsshouldstipulatethetypeofinsurancerequiredand,ifany,theadditionalriskswhicharetobecovered.Imprecisetermssuchas"usualrisks"or"customaryrisks"shallnotbeused;iftheyareused,bankswillacceptinsurancedocumentsaspresented,withoutresponsibilityforanyrisksnotbeingcovered.
B.FailingspecificstipulationsintheCredit,bankswillacceptinsurancedocumentsaspresented,withoutresponsibilityforanyrisksnotbeingcovered.
C.UnlessotherwisestipulatedintheCredit,bankswillacceptaninsurancedocumentwhichindicatesthatthecoverissubjecttoafranchiseoranexcess(deductible).
ARTICLE36
AllRisksInsuranceCover
WhereaCreditstipulates"insuranceagainstallrisks",bankswillacceptaninsurancedocumentwhichcontainsany"allrisks"notationorclause,whetherornotbearingtheheading"allrisks",eveniftheinsurancedocumentindicatesthatcertainrisksareexcluded,withoutresponsibilityforanyrisk(s)notbeingcovered.
ARTICLE37
CommercialInvoices
A.UnlessotherwisestipulatedintheCredit,commercialinvoices;
i.mustappearontheirfacetobeissuedbytheBeneficiarynamedintheCredit(exceptasprovidedinArticle48),
and
ii.mustbemadeoutinthenameoftheApplicant(exceptasprovidedinsubArticle48(H)),
and
iii.neednotbesigned.
B.UnlessotherwisestipulatedintheCredit,banksmayrefusecommercialinvoicesissuedforamountsinexcessoftheamountpermittedbytheCredit.Nevertheless,ifabankauthorizedtopay,incuradeferredpaymentundertaking,acceptDraft(s),ornegotiateunderaCreditacceptssuchinvoices,itsdecisionwillbebindinguponallparties,providedthatsuchbankhasnotpaid,incurredadeferredpaymentundertaking,acceptedDraft(s)ornegotiatedforanamountinexcessofthatpermittedbytheCredit.
C.ThedescriptionofthegoodsinthecommercialinvoicemustcorrespondwiththedescriptionintheCredit.Inallotherdocuments,thegoodsmaybedescribedingeneraltermsnotinconsistentwiththedescriptionofthegoodsintheCredit.
ARTICLE38
OtherDocuments
IfaCreditcallsforanattestationorcertificationofweightinthecaseoftransportotherthanbysea,bankswillacceptaweightstampordeclarationofweightwhichappearstohavebeensuperimposedonthetransportdocumentbythecarrierorhisagentunlesstheCreditspecificallystipulatesthattheattestationorcertificationofweightmustbebymeansofaseparatedocument.
MISCELLANEOUSPROVISIONS
ARTICLE39
AllowancesinCreditAmount,QuantityandUnitPrice
A.Thewords"about","approximately","circa"orsimilarexpressionsusedinconnectionwiththeamountoftheCreditorthequantityortheunitpricestatedintheCreditaretobeconstruedasallowingadifferencenottoexceed10%moreor10%lessthantheamountorthequantityortheunitpricetowhichtheyrefer.
B.UnlessaCreditstipulatesthatthequantityofthegoodsspecifiedmustnotbeexceededorreduced,atoleranceof5%moreor5%lesswillbepermissible,alwaysprovidedthattheamountofthedrawingsdoesnotexceedtheamountoftheCredit.ThistolerancedoesnotapplywhentheCreditstipulatesthequantityintermsofastatednumberofpackingunitsorindividualitems.
C.UnlessaCreditwhichprohibitspartialshipmentsstipulatesotherwise,orunlesssubArticle(B)aboveisapplicable,atoleranceof5%lessintheamountofthedrawingwillbepermissible,providedthatiftheCreditstipulatesthequantityofthegoods,suchquantityofgoodsisshippedinfull,andiftheCreditstipulatesaunitprice,suchpriceisnotreduced.ThisprovisiondoesnotapplywhenexpressionsreferredtoinsubArticle(A)aboveareusedintheCredit.
ARTICLE40
PartialShipments/Drawings
A.Partialdrawingsand/orshipmentsareallowed,unlesstheCreditstipulatesotherwise.
B.Transportdocumentswhichappearontheirfacetoindicatethatshipmenthasbeenmadeonthesamemeansofconveyanceandforthesamejourney,providedtheyindicatethesamedestination,willnotberegardedascoveringpartialshipments,evenifthetransportdocumentsindicatedifferentdatesofshipmentand/ordifferentportsofloading,placesoftakingincharge,ordispatch.
C.Shipmentsmadebypostorbycourierwillnotberegardedaspartialshipmentsifthepostreceiptsorcertificatesofpostingorcourier’sreceiptsordispatchnotesappeartohavebeenstamped,signedorotherwiseauthenticatedintheplacefromwhichtheCreditstipulatesthegoodsaretobedispatched,andonthesamedate.
ARTICLE41
InstallmentShipments/Drawings
Ifdrawingsand/orshipmentsbyinstallmentswithingivenperiodsarestipulatedintheCreditandanyinstallmentisnotdrawnand/orshippedwithintheperiodallowedforthatinstallment,theCreditceasestobeavailableforthatandanysubsequentinstallments,unlessotherwisestipulatedintheCredit.
ARTICLE42
ExpiryDateandPlaceforPresentationofDocuments
A.AllCreditsmuststipulateanexpirydateandaplaceforpresentationofdocumentsforpayment,acceptance,orwiththeexceptionoffreelynegotiableCredits,aplaceforpresentationofdocumentsfornegotiation.Anexpirydatestipulatedforpayment,acceptanceornegotiationwillbeconstruedtoexpressanexpirydateforpresentationofdocuments.
B.ExceptasprovidedinsubArticle44(A),documentsmustbepresentedonorbeforesuchexpirydate.
C.IfanIssuingBankstatesthattheCreditistobeavailable"foronemonth","forsixmonths",orthelike,butdoesnotspecifythedatefromwhichthetimeistorun,thedateofissuanceoftheCreditbytheIssuingBankwillbedeemedtobethefirstdayfromwhichsuchtimeistorun.BanksshoulddiscourageindicationoftheexpirydateoftheCreditinthismanner.
ARTICLE43
LimitationontheExpiryDate
A.Inadditiontostipulatinganexpirydateforpresentationofdocuments,everyCreditwhichcallsforatransportdocument(s)shouldalsostipulateaspecifiedperiodoftimeafterthedateofshipmentduringwhichpresentationmustbemadeincompliancewiththetermsandconditionsoftheCredit.Ifnosuchperiodoftimeisstipulated,bankswillnotacceptdocumentspresentedtothemlaterthan21daysafterthedateofshipment.Inanyevent,documentsmustbepresentednotlaterthantheexpirydateoftheCredit.
B.IncasesinwhichsubArticle40(B)applies,thedateofshipmentwillbeconsideredtobethelatestshipmentdateonanyofthetransportdocumentspresented.
ARTICLE44
ExtensionofExpiryDate
A.IftheexpirydateoftheCreditand/orthelastdayoftheperiodoftimeforpresentationofdocumentsstipulatedbytheCreditorapplicablebyvirtueofArticle43fallsonadayonwhichthebanktowhichpresentationhastobemadeisclosedforreasonsotherthanthosereferredtoinArticle17,thestipulatedexpirydateand/orthelastdayoftheperiodoftimeafterthedateofshipmentforpresentationofdocuments,asthecasemaybe,shallbeextendedtothefirstfollowingdayonwhichsuchbankisopen.
B.Thelatestdateforshipmentshallnotbeextendedbyreasonoftheextensionoftheexpirydateand/ortheperiodoftimeafterthedateofshipmentforpresentationofdocumentsinaccordancewithsubArticle(A)above.IfnosuchlatestdateforshipmentisstipulatedintheCreditoramendmentsthereto,bankswillnotaccepttransportdocumentsindicatingadateofshipmentlaterthantheexpirydatestipulatedintheCreditoramendmentsthereto.
C.ThebanktowhichpresentationismadeonsuchfirstfollowingbusinessdaymustprovideastatementthatthedocumentswerepresentedwithinthetimelimitsextendedinaccordancewithsubArticle44(A)oftheUniformCustomsandPracticeforDocumentaryCredits,1993Revision,ICCPublicationNo.500.
ARTICLE45
HoursofPresentation
Banksareundernoobligationtoacceptpresentationofdocumentsoutsidetheirbankinghours.
ARTICLE46
GeneralExpressionsastoDatesforShipment
A.UnlessotherwisestipulatedintheCredit,theexpression"shipment"usedinstipulatinganearliestand/oralatestdateforshipmentwillbeunderstoodtoincludeexpressionssuchas,"loadingonboard","dispatch","acceptedforcarriage","dateofpostreceipt","dateofpickup",andthelike,andthecaseofaCreditcallingforamultimodaltransportdocumenttheexpression"takingincharge".
B.Expressionssuchas"prompt","immediately","assoonaspossible",andthelikeshouldnotbeused.Iftheyareusedbankswilldisregardthem.
C.Iftheexpression"onorabout"orsimilarexpressionsareused,bankswillinterpretthemasastipulationthattheshipmentistobemadeduringtheperiodfromfivedaysbeforetofivedaysafterthespecifieddate,bothenddaysincluded.
ARTICLE47
DateTerminologyforPeriodsofShipment
A.Thewords"to","until","till","from"andwordsofsimilarimportapplyingtoanydateorperiodintheCreditreferringtoshipmentwillbeunderstoodtoincludethedatementioned.
B.Theword"after"willbeunderstoodtoexcludethedatementioned.
C.Theterms"firsthalf’,"secondhalfofamonthshallbeconstruedrespectivelyasthe1sttothe15th,andthe16thtothelastdayofsuchmonth,alldatesinclusive.
D.Theterms"beginning","middle",or"end"ofamonthshallbeconstruedrespectivelyasthe1sttothe10th,the11thtothe20th,andthe21sttothelastdayofsuchmonth,alldatesinclusive.
TRANSFERABLECREDIT
ARTICLE48
TransferableCredit
A.AtransferableCreditisaCreditunderwhichtheBeneficiary(FirstBeneficiary)mayrequestthebankauthorizedtopay,incuradeferredpaymentundertaking,acceptornegotiate(the"TransferringBank"),orinthecaseofafreelynegotiableCredit,thebankspecificallyauthorizedintheCreditasaTransferringBank,tomaketheCreditavailableinwholeorinparttooneormoreotherBeneficiary(ies)(SecondBeneficiary(ies)).
B.ACreditcanbetransferredonlyifitisexpresslydesignatedas"transferable"bytheIssuingBank.Termssuchas"divisible","fractionable","assignable",and"transmissible"donotrendertheCredittransferable.Ifsuchtermsareusedtheyshallbedisregarded.
C.TheTransferringBankshallbeundernoobligationtoeffectsuchtransferexcepttotheextentandinthemannerexpresslyconsentedtobysuchbank.
D.AtthetimeofmakingarequestfortransferandpriortotransferoftheCredit,theFirstBeneficiarymustirrevocablyinstructtheTransferringBankwhetherornotheretainstherighttorefusetoallowtheTransferringBanktoadviseamendmentstotheSecondBeneficiary(ies).IftheTransferringBankconsentstothetransferundertheseconditions,itmust,atthetimeoftransfer,advisetheSecondBeneficiary(ies)oftheFirstBeneficiary’sinstructionsregardingamendments.
E.IfaCreditistransferredtomorethanoneSecondBeneficiary(ies),refusalofanamendmentbyoneormoreSecondBeneficiary(ies)doesnotinvalidatetheacceptance(s)bytheotherSecondBeneficiary(ies)withrespecttowhomtheCreditwillbeamendedaccordingly.WithrespecttotheSecondBeneficiary(ies)whorejectedtheamendment,theCreditwillremainunammended.
F.TransferringBankchargesinrespectoftransfersincludingcommissions,fees,costsorexpensesarepayablebytheFirstBeneficiary,unlessotherwiseagreed.IftheTransferringBankagreestotransfertheCredititshallbeundernoobligationtoeffectthetransferuntilsuchchargesarepaid.
G.UnlessotherwisestatedintheCredit,atransferableCreditcanbetransferredonceonly.Consequently,theCreditcannotbetransferredattherequestoftheSecondBeneficiarytoanysubsequentThirdBeneficiary.ForthepurposeofthisArticle,aretransfertotheFirstBeneficiarydoesnotconstituteaprohibitedtransfer.
FractionsofatransferableCredit(notexceedingintheaggregatetheamountoftheCredit)canbetransferredseparately,providedpartialshipment/drawingsarenotprohibited,andtheaggregateofsuchtransferswillbeconsideredasconstitutingonlyonetransferoftheCredit.
H.TheCreditcanbetransferredonlyonthetermsandconditionsspecifiedintheoriginalCredit,withtheexceptionof:
theamountoftheCredit,
anyunitpricestatedtherein,
theexpirydate,
thelastdateforpresentationofdocumentsinaccordancewithArticle43
theperiodforshipment,anyorallofwhichmaybereducedorcurtailed.
ThepercentageforwhichinsurancecovermustbeeffectedmaybeincreasedinsuchawayastoprovidetheamountofcoverstipulatedintheoriginalCredit,ortheseArticles.
Inaddition,thenameoftheFirstBeneficiarycanbesubstitutedforthatoftheApplicant,butifthenameoftheApplicantisspecificallyrequiredbytheoriginalCredittoappearinanydocument(s)otherthantheinvoice,suchrequirementmustbefulfilled.
I.TheFirstBeneficiaryhastherighttosubstitutehisowninvoice(s)(andDraft(s))forthoseoftheSecondBeneficiary(ies),foramountsnotinexcessoftheoriginalamountstipulatedintheCreditandfortheoriginalunitpricesifstipulatedintheCredit,anduponsuchsubstitutionofinvoice(s)(andDraft(s))theFirstBeneficiarycandrawundertheCreditforthedifference,ifany,betweenhisinvoice(s)andtheSecondBeneficiaries(ies’)invoice(s).
WhenaCredithasbeentransferredandtheFirstBeneficiaryistosupplyhisowninvoice(s)(andDraft(s))inexchangefortheSecondBeneficiary’s(ies’)invoices(s)(andDraft(s))butfailstodosoonfirstdemand,theTransferringBankhastherighttodelivertotheIssuingBankthedocumentsreceivedunderthetransferredCredit,includingtheSecondBeneficiary’s(ies’)invoice(s)(andDraft(s))withoutfurtherresponsibilitytotheFirstBeneficiary.
J.TheFirstBeneficiarymayrequestthatpaymentornegotiationbeeffectedtotheSecondBeneficiary(ies)attheplacetowhichtheCredithasbeentransferreduptoandincludingtheexpirydateoftheCredit,unlesstheoriginalCreditexpresslystatesthatitmaynotbemadeavailableforpaymentornegotiationataplaceotherthanthatstipulatedintheCredit.ThisiswithoutprejudicetotheFirstBeneficiary’srighttosubstitutesubsequentlyhisowninvoice(s)(andDraft(s))forthoseoftheSecondBeneficiary(ies)andtoclaimanydifferenceduetohim.
ASSIGNMENTOFPROCEEDS
ARTICLE49
AssignmentofProceeds
ThefactthataCreditisnotstatedtobetransferableshallnotaffecttheBeneficiary’srighttoassignanyproceedstowhichhemaybe,ormaybecome,entitledundersuchCredit,inaccordancewiththeprovisionsoftheapplicablelaw.ThisArticlerelatesonlytotheassignmentofproceedsandnottotheassignmentoftherighttoperformundertheCredititself.
ICCARBITRATION
ContractingpartiesthatwishtohavethepossibilityofresortingtoICCArbitrationintheeventofadisputewiththeircontractingpartnershouldspecificallyandclearlyagreeuponICCArbitrationintheircontractor,intheeventnosinglecontractualdocumentexists,intheexchangeofcorrespondencewhichconstitutestheagreementbetweenthem.ThefactofissuingaletterofcreditsubjecttotheUCP500doesNOTbyitselfconstituteanagreementtohaveresorttoICCArbitration.ThefollowingstandardarbitrationclauseisrecommendedbytheICC:
"AlldisputesarisinginconnectionwiththepresentcontractshallbefinallysettledundertheRulesofConciliationandArbitrationoftheInternationalChamberofCommercebyoneormorearbitratorsappointedinaccordancewiththesaidRules".
