 Trade Helper |
|
|
|
|
|
 L/C(Letter of Credit) |
Home > Helper |
 |
 {2} UCP
| [1] Definition and the effects |
- UCP(Uniform Customs and Practice for Documentary Credit) is the international regulations
to keep when handling L/C related business that regulated the interpretation standard on
all sorts of items.
- International trade requires proper regulations to unify the different kinds of commercial
practice, law, culture according to each countries and to satisfy the request the UCP has
been established by bank committees of ICC(International Chamber of Commerce).
- However, the UCP does not hold any legal binding force and the clearly stated special
agreement of the parties involved as per L/C will be apply in priority then substantive
enactment of UCP.
- Proper wording example of UCP : |
|
| - Except so far as otherwise expressly stated, this documentary credit is subject to "Uniform customs and practice for documentary credit"(1993 revision International Chamber of Commerce publication No. 500) |
|
[2] Enactment and revision discernment |
(1) Enactment : 1993
(2) The 1st revision : 1951
(3) The 2nd revision : 1962
(4) the 3rd revision : 1974
(5) the fourth revision : 1983
(6) the 5th revision : 1993 revision 1994 executed from January. |
|
[3] Key composition details |
| - Composite in total 7 pages and 49 provisions |
|
1. General term and definition : Applicable range, relations of sales contract and character
2. Forms and notice of L/C : the related parties, irrevocable and revocable, confirmation,
appoint corresponding banks, instruction method
3. Responsibility and duty : Obligation of the related parties , waiver agreement of bank,
reimbursement method of the earning
4. Documents : The general requirements for documents, shipping documents, insurance
documents, commercial invoice, and other documents.
5. Other clauses : Incidental evidence related to L/C interpretation
6. Transfer |
|
|
|
|
|
2006 - 2011 tradegoods.com All right reserved