Common Discrepancies Documentation

All mistakes cause extra work and are sometimes accompanied by additional charges. They can also lead to delays in receiving payment, price reductions and even the avoidance of liability by the Importer altogether.

To help avoid discrepancies, we have highlighted the common mistakes for the documents below.

Bill of Exchange
Drawn incorrectly, or the amount differs from that of the invoice.
Capacity of the signatories is not stated if required.
Not endorsed or incorrectly endorsed.

Invoice
Description of the goods differs from that in the LC.
Amount differs from that of the LC.
Amount differs from that of the Bill of Exchange.
Prices of goods differ from those indicated in the LC.
Price basis and shipment terms omitted.
Extra charges included that are not specified in the LC.
Is not certified, notarised or signed as required by the credit.
Does not contain a declaration required under the LC.
Importer's name differs from that mentioned in the LC.
Is not issued by the Exporter.
Be consistent with each other.

Bill of Lading
Not presented in full set when requested.
Alterations not authenticated by an official of the shipping company or its agents.
Is not clean, ie. carries remarks that the condition and/or the packaging of the merchandise is defective.
Is not marked 'on board' when so required.
'On board' notation not dated.
Is not endorsed by the Exporter when drawn 'to order'.
Is not marked 'freight paid' as stipulated in the LC in respect of Cost & Freight and Cost Insurance & Freight contracts.
Is made out 'to order' when the LC stipulated 'direct to consignee' (Importer) and vice versa.
Is dated later than the latest shipping date specified in the LC.
Is not presented within 21 days after date of shipment or such time as specified in the LC.
Description of goods other than that specified in the LC.
Rate at which freight is calculated, and total amount, not shown when LC requires these details.

The following are only acceptable if expressly allowed in the Letter of Credit:
Shipment 'on deck', ie. the goods are not stored in the hold.
Shipment from a port or to a destination other than that stipulated.
Presentation of types of Bills of Lading not specifically authorised in the LC, eg. a Charter party Bill of Lading, or a Forwarding agent's Bill of Lading.


Insurance
Amount of cover is sufficient.
Does not include risks mentioned in the LC.
Is not endorsed by the insured and/or signed by the insurers.
Certificate or policy bears a date later than the date of shipment/despatch, except where warehouse-to-warehouse is indicated.
Incorrect description of goods.
Alterations are not authenticated.
Is not in transferable form when required.
Carrying vessel's name not recorded.
Does not cover transhipment when Bills of Lading indicate it will take place.

Uniform Rules for Collections,ICC Publication No 522

A GENERAL PROVISIONS AND DEFINITIONS

ARTICLE 1
Application of URC 522
a The Uniform Rules for Collections, 1995 Revision, ICC Publication No 522, shall apply to all collections as defined in ARTICLE 2 where such rules are incorporated into the text of the ‘collection instruction' referred to in ARTICLE 4 and are binding on all parties thereto unless otherwise expressly agreed or contrary to the provisions of a national, state or local law and/or regulation which cannot be departed from.

b Banks shall have no obligation to handle either a collection or any collection instruction or subsequent related instructions.

c If a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise the party from whom it received the collection or the instructions by telecommunication or, if that is not possible, by other expeditious means, without delay.

ARTICLE 2
Definition of Collection
For the purposes of these ARTICLEs :

a ‘Collection' means the handling by banks of documents as defined in Sub-ARTICLE 2 b in accordance with instructions received , in order to :

1. obtain payment and/or acceptance or
2. deliver documents against payment and/or against acceptance. or
3. deliver documents on other terms and conditions.

b ‘Documents' means financial documents and/or commercial documents:

1. ‘Financial documents‘ means bills of exchange, promissory notes, cheques, or other similar instruments used for obtaining the payment of money.
2. ‘Commercial documents’ means invoices, transport documents, documents of title or other similar documents, or any other documents whatsoever, not being financial documents.

c ‘Clean Collection‘ means collection of financial documents not accompanied by commercial documents

d 'Documentary collection‘ means collection of :

1. Financial documents accompanied by commercial documents.
2. Commercial documents not accompanied by financial documents.

ARTICLE 3
Parties to a Collection
a For the purposes of these ARTICLEs the ‘parties thereto‘ are :

1.the ‘principal’ who is the party entrusting the handling of a collection to a bank;
2.the ‘remitting bank’ which is the bank to which the principal has entrusted the handling of a collection;
3.the ‘collecting bank’ which is any bank, other than the remitting bank, involved in processing the collection;
4.the ‘presenting bank’ which is the collecting bank making presentation to the drawee.

b The ‘drawee’ is the one to whom presentation is to be made in accordance with the collection instruction.

B FORM AND STRUCTURE OF COLLECTIONS

ARTICLE 4
Collection Instruction
a 1. All documents sent for collection must be accompanied by a collection instruction indicating that the collection is subject to URC 522 and giving complete and precise instructions. Banks are only permitted to act upon the instructions given in such collection instruction, and in accordance with these Rules.
2. Banks will not examine documents in order to obtain instructions.
3. Unless otherwise authorised in the collection instruction, banks will disregard any instructions from any party/bank other than the party/bank from whom they received the collection.

b A collection instruction should contain the following items of information as appropriate.

1. Details of the bank from which the collection was received including full name, postal and SWIFT addresses, telex, facsimile numbers and reference.
2. Details of the principal including full name, postal address, and if applicable telex, telephone and facsimile numbers.
3. Details of the drawee including full name, postal address, or the domicile at which presentation is to be made and if applicable telex, telephone and facsimile numbers.
4. Details of the presenting bank, if any, including full name, postal address, and if applicable telex, telephone and facsimile numbers.
5. Amount(s) and currency(ies) to be collected
6. List of documents enclosed and the numerical count of each document.
7. a Terms and conditions upon which payment and or acceptance is to be obtained.
b Terms of delivery of documents against :
1) payment and/or acceptance
2) others terms and conditions

It is the responsibility of the party preparing the collection instruction to ensure that the terms for the delivery of documents are clearly and unambiguously stated, otherwise banks will not be responsible for any consequences arising therefrom.
8. Charges to be collected, indicating whether they may be waived or not.
9. Interest to be collected, if applicable, indicating whether it may be waived or not, including:
a. rate of interest
b. interest period
c. basis of calculation (for example 360 or 365 days in a year) as applicable
10. Method of payment and form of payment advice.
11. Instructions in case of non-payment, non-acceptance and/or non-compliance with other instructions.

c 1. Collection instructions should bear the complete address of the drawee or of the domicile at which the presentation is to be made. If the address is incomplete or incorrect, the collecting bank may, without any liability and responsibility on its part, endeavour to as certain the proper address.

2. The collecting bank will not be liable or responsible for any ensuing delay as a result of an incomplete/incorrect address being provided.










C FORM OF PRESENTATION

ARTICLE 5
Presentation
a For the purposes of these ARTICLEs, presentation is the procedure whereby the presenting bank makes the documents available to the drawee as instructed.

b The collection instruction should state the exact period of time within which any action is to be taken by the drawee.
Expressions such as ‘first’, ‘prompt’, ‘immediate’, and the like should not be used in connection with presentation or with reference to any period of time within which documents have to be taken up or for any other action that is to be taken by the drawee. If such terms are used banks will disregard them.

c Documents are to be presented to the drawee in the form in which they are received, except that banks are authorized to affix any necessary stamps, at the expense of the party from whom they received the collection unless otherwise instructed, and to make any necessary endorsements or place any rubber stamps or other identifying marks or symbols customary to or required for the collection operation.

d For the purpose of giving effect to the instructions of the principal, the remitting bank will utilise the bank nominated by the principal as the collecting bank. In the absence of such nomination, the remitting bank will utilize any bank of its own, or another bank’s choice in the country of payment or acceptance or in the country where other terms and conditions have to be complied with.

e The documents and collection instruction may be sent directly by the remitting bank to the collecting bank or through another bank as intermediary.

f If the remitting bank does not nominate a specific presenting bank, the collecting bank may utilise a presenting of its choice.

ARTICLE 6
Sight/Acceptance
In the case of documents payable at sight the presenting bank must make presentation for payment without delay. In the case of documents payable at a tenor other than sight the presenting bank must, where acceptance is called for, make presentation for acceptance without delay, and where payment is called for, make presentation for payment not later than the appropriate maturity date.

ARTICLE 7
Release of Commercial Documents
Documents Against Acceptance (D/A) vs. Documents Against Payment (D/P)

a Collections should not contain bills of exchange payable at a future date with instructions that commercial documents are to be delivered against payment.

b If a collection contains a bill of exchange payable at a future date, the collection instruction should state whether the commercial documents are to be released to the drawee against acceptance (D/A) or against payment (D/P)

In the absence of such statement commercial documents will be released only against payment and the collecting bank will not be responsible for any consequences arising out of any delay in the delivery of documents.

c If a collection contains a bill of exchange payable at a future date and the collection instruction indicates that commercial documents are to be released against payment, documents will be released only against such payment and the collecting bank will not be responsible for any consequences arising out of any delay in the delivery of documents.

ARTICLE 8
Creation of Documents
Where the remitting bank instructs either the collecting bank or the drawee is to create documents (bills of exchange, promissory notes, trust receipts, letters of undertaking or other documents) that were not included in the collection, the form and wording of such documents shall be provided by the remitting bank, otherwise the collecting bank shall be not be liable or responsible for the form and wording of any such documents provided by the collecting bank and/or the drawee.

D LIABILITIES AND RESPONSIBILITIES

ARTICLE 9
Good faith and Reasonable care
Banks will act in good faith and exercise reasonable care

ARTICLE 10
Documents vs. Goods/Services/Performances
a Goods should be despatched directly to the address of a bank or consigned to or to the order of a bank without prior agreement on the part of that bank.

Nevertheless, in the event that goods are despatched directly to the address of a bank or consigned to or to the order of a bank for release to a drawee against payment or acceptance or upon other terms and conditions without prior agreement on the part of that bank, such bank shall have no obligation to take delivery of the goods, which remain at the risk and responsibility of the party despatching the goods.

b Banks have no obligation to take any action in respect of the goods to which a documentary collection relates, including storage and insurance of the goods even when specific instructions are given to do so. Banks will only take such action if, when, and to the extent that they agree to do so in each case. Notwithstanding the provisions of Sub-ARTICLE 1 c this rule applies even in the absence of any specific advice to this effect by the collecting bank.

c Nevertheless, in the case that banks take action for the protection of the goods, whether instructed or not, they assume no liability or responsibility with regard to the fate and/or conditions of the goods and/or for any acts and/or omissions on the part of any third parties entrusted with the custody and/or protection of the goods. However, the collecting bank must advise without delay the bank from which the collection instruction was received of any such action taken.

d Any charges and/or expenses incurred by banks in connection with any action taken to protect the goods will be for the account of the party from whom they received the collection.

e 1. Notwithstanding the provisions of Sub-ARTICLE 10 a. where the goods are consigned to or to the order of the collecting bank and the drawee has honoured the collection by payment, acceptance or other terms and conditions and the collecting bank arranges for the release of the goods, remitting bank shall be deemed to have authorised the collecting bank to do so.

2. Where a collecting bank on the instructions of the remitting bank or in terms of Sub-ARTICLE 10 e (1.) above arranges for the release of the goods, the remitting bank shall indemnify such collecting bank for all damages and expenses incurred.

ARTICLE 11
Disclaimer For Acts of an Instructed Party
a Banks utilising the services of another bank or other banks for the purpose of giving effect to the instructions of the principal, do so for the account and at the risk of such principal.

b Banks assume no liability or responsibility should the instructions they transmit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).

c A party instructing another party to perform services shall be bound by and liable to indemnify the instructed party against all obligations and responsibilities imposed by foreign laws and usages.

ARTICLE 12
Disclaimer on Documents Received
a Banks must determine that the documents received appear to be as listed in the collection instruction and must advise by telecommunication or, if that is not possible, by other expeditious means, without delay, the party from whom the collection instruction was received of any documents missing, or found to be other than listed.

Banks have no further obligation in this respect.

b If the documents do not appear to be listed, the remitting bank shall be precluded from disputing the type and number of documents received by the collecting bank.

c Subject to Sub-ARTICLE 5 c and Sub-ARTICLEs 12 a and 12 b above, banks will present documents as received without further examination.

ARTICLE 13
Disclaimer on Effectiveness of Documents
Banks assume no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any documents(s), or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon; nor do they assume any liability or responsibility for the description quantity; weight , quality, conditions, packing, delivery, value or existence of the goods represented by any document(s), or for the good faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignees or the insurers of the goods, or any other person whomsoever.

ARTICLE 14
Disclaimer on Delays, Loss in Transit and Translation
a Banks assume no liability or responsibility for the consequences arising out of delay and/or loss in transit of any message(s), letter(s) or document(s), or for delay, mutilation or other error(s) arising in transmission of any telecommunication or for error(s) in translation and or interpretation of technical terms.

b Banks will not be aliable or responsible for any delays resulting from the need to obtain clarification of any instructions received.

ARTICLE 15
Force Majeure
Banks assume no liability or responsibility for consequences arising out of the interruption of their business by Acts of God, riots, civil commotions, insurrections, wars, or any other causes beyond their control or by strikes or lockouts.

E PAYMENT

ARTICLE 16
Payment Without Delay
a Amounts collected (less charges and/or disbursements and/or expenses where applicable) must be made available without delay to the party from whom the collection instruction was received in accordance with the terms and conditions of the collection instruction.

b Notwithstanding the provisions of Sub-ARTICLEs 1 c and unless otherwise agreed, the collecting bank will effect payment of the amount collected in favour of the remitting bank only.

ARTICLE 17
Payment in Local Currency
In the case of documents payable in the currency of the country of payment (local currency), the presenting bank must, unless otherwise instructed in the collection instruction release the documents to the drawee against payment in local currency only if such currency is immediately available for disposal in the manner specified in the collection instruction.

ARTICLE 18
Payment in Foreign Currency
In the case of documents payable in the currency other than that of the country of payment (foreign currency), the presenting bank must, unless otherwise instructed in the collection instruction, release the documents to the drawee against payment in the designated foreign currency only if such foreign currency can immediately be remitted in accordance with the instructions given in the collection instruction.

ARTICLE 19
Partial Payments
a In respect of clear collections, partial payments may be accepted if and to the extent to which and on the conditions on which partial payments are authorized by the law in force in the place of payment. The financial document(s) will be released to the drawee only when full payment thereof has been received.

b In respect of documentary collections, partial payments will only be accepted if specifically authorised in the collection instruction. However, unless otherwise instructed, the presenting bank will not be responsible for any consequences arising out of any delay in the delivery of the documents.

c In all cases partial payments will be accepted only subject to compliance with the provisions of either ARTICLE 17 or ARTICLE 18 as appropriate.

Partial payment, if accepted, will be dealt with in accordance with the provisions of ARTICLE 16.

F INTEREST CHARGES AND EXPENSES

ARTICLE 20
Interest
a If the collection instruction specifies that interest is to be collected and the drawee refuses to pay such interest, the presenting bank may deliver the document(s) against payment or acceptance or on other terms and conditions as the case may be, without collecting such interest, unless Sub-ARTICLE 20 c applies.

b Where such interest is to be collected, the collection instruction must specify the rate of interest, interest period and basis of calculation.

c Where the collection instruction expressly states that interest may not be waived and the drawee refuses to pay such interest the presenting bank will not deliver documents and will not be responsible for any consequences arising out of any delay in the delivery of document(s). When payment of interest has been refused, the presenting bank must inform by telecommunication or, if that is not possible, by other expeditious means without delay the bank from which the collection instruction was received.

ARTICLE 21
Charges and Expenses
a If the collection instruction specifies that collection charges and/or expenses are to be for account of the drawee and the drawee refuses to pay them, the presenting bank may deliver the document(s) against payment or acceptance or on other terms and conditions as the case may be, without collecting charges and/or expenses, unless Sub-ARTICLE 21 b applies.

Whenever collection charges and/or expense are so waived they will be for the account of the party from whom the collection was received and may be deducted from the proceeds.

b Where the collection instruction expressly states that charges and/or expenses may not be waived and the drawee refuses to pay such charges and/or expenses, the presenting bank will not deliver documents and will not be responsible for any consequences arising out of any delay in the delivery of the document(s). When payment of collection charges and/or expenses has been refused the presenting bank must inform by telecommunication or, if that is not possible, by other expeditious means without delay the bank from whom the collection instruction was received.

c In all cases where in the express terms of a collection instruction or under these Rules, disbursement and/or expenses and/or collection charges are to be borne by the principal, the collecting bank(s) shall be entitled to recover promptly outlays in respect of disbursements, expenses and charges from the bank from which the collection instruction was received, and the remitting bank shall be entitled to recover promptly from the principal any amount so paid out by it, together with its own disbursements, expenses and charges, regardless of the fate of the collection.

d Banks reserve the right to demand payment of charges and/or expenses in advance from the party from whom the collection instruction was received, to cover costs in attempting to carry out any instructions, and pending receipt of such payment, also reserve the right not to carry out such instructions.

G OTHER PROVISIONS

ARTICLE 22
Acceptance
The presenting bank is responsible for seeing that the form of the acceptance of a bill of exchange appears to be complete and correct, but is not responsible for the genuineness of any signature or for the authority of any signatory to sign the acceptance.

ARTICLE 23
Promissory Notes and Other Instruments
The presenting bank is not responsible for the genuineness of any signature or for the authority of any signatory to sign a promissory notes, receipt, or other instruments.

ARTICLE 24
Protest
The collection instruction should give specific instructions regarding protest (or other legal process in lieu thereof), in the event of non-payment or non- acceptance.

In the absence of such specific instructions, the banks concerned with the collection have no obligation to have the document(s) protested (or subject to other legal process in lieu thereof) for non-payment or non- acceptance.

Any charges and/or expenses incurred by banks in connection with such protest, or other legal process, will be for the account of the party from whom the collection instruction was received.

ARTICLE 25
Case-of-Need
If the principal nominates a representative to act as case-of-need in the event of non-payment and/or non-acceptance the collection instruction should clearly and fully indicate the powers of such case-of-need. In the absence of such indication banks will not accept any instructions from the case-of-need.

ARTICLE 26
Advises
Collecting banks are to advise fate in accordance with the following rules:

a Form of Advice

All advises or information from the collecting bank to the bank from which the collection instruction was received, must bear appropriate details including, in all cases, the latter bank’s reference as stated in the collection instruction.

b Method of Advice

It shall be the responsibility of the remitting bank to instruct the collecting bank regarding the method by which the advises detailed in c (1.), c (2.) and c (3.) are to be given. In the absence of such instructions, the collecting bank will send the relative advises by the method of its choice at the expense of the bank from which the collection instruction was received.

c 1. Advice of Payment

The collecting bank must send without delay advice of payment to the bank from which the collection instruction was received, detailing the amount or amounts collected, charges and/or disbursements and/or expenses deducted, where appropriate, and method of disposal of the funds.

2. Advice of Acceptance

The collecting bank must send without delay advice of acceptance to the bank from which the collection instruction was received.

3. Advice of Non-payment and/or Non-Acceptance

The presenting bank should endeavour to ascertain the reasons for non-payment and/or non-acceptance and advise accordingly, without delay, the bank from which it received the collection instruction.

The presenting bank must send without delay advice of non-payment and/or advice of non- acceptance to the bank from which it received the collection instruction.

On receipt of such advice the remitting bank must give appropriate instruction as to the further handling of the documents. If such instructions are not received by the presenting bank within 60 days after its advice of non-payment and/or non-acceptance, the documents may be returned to the bank from which the collection instruction was received without any further responsibility on the part of the presenting bank.

Checklist for Export DC Document Preparation

General points
– Do not accept any documentary credits notified to
you directly from abroad without first checking their
authenticity.
– Is the documentary credit revocable or irrevocable,
unconfirmed or confirmed, as agreed?
– Does the documentary credit correspond with the
contract, especially in connection with the following
points?
• Amount/unit price
• Period of validity /shipping deadline
• Delivery terms
• Description and provenance of goods?
– Can it be transferred, if necessary?
– Where and how is the credit available?
– Does the documentary credit contain contradictory
stipulations?
– If the documentary credit is unconfirmed or confirmed
by a foreign bank, what is your assessment of:
a) the credit risk (creditworthiness of the bank),
b) the country risk (i.e. political and transfer risk, the
trading conditions in the buyer’s country),
c) the mailing risk (if the credit is available abroad)?
– Is the manufacturing risk covered?
– Are the names and addresses of the applicant and the
beneficiary correct?
– Is the documentary credit subject to the ICC’s currently
valid Uniform Customs and Practice for Documentary
Credits (UCP 500)?
– If documents are to be presented in electronic records:
is the documentary credit subject to the ICC’s currently
valid “Supplement to UCP 500 for Electronic Presentation”
(eUCP)?
– Is there sufficient time available to meet attestation and
authentication requirements?
– Are declarations requested in the documents which
cannot be made?
– Are documents stipulated which are contradictory to
the terms of delivery?
– Does the credit stipulate documents which need to be
drawn up or countersigned by the buyer or his bank
(= soft clause /stop clause)? (If so, fulfilment of the
credit terms depends largely on the buyer’s goodwill.)
– Can the required number of specified documents be
furnished?
– Are the terms of delivery correct?
– Are the commission arrangements in the documentary
credit as contractually agreed?
– Have all the affected departments in your company
(accounting, shipping, sales, etc.) been informed of the
documentary credit?
– Have all external partners (freight forwarders, insurers,
inspection agencies, etc.) been informed of the documentary
credit?
– Certificates must always be signed and dated.
– If original documents are required, we recommend you
always mark them as “originals.”
– Documents issued by the documentary credit beneficiary
should be drawn up in the same language as used
in the credit.

Deadlines and shipment of goods
– Can the shipment deadline be met?
– Are the terms regarding the place where the goods are
to be taken in charge and the points of departure and
arrival feasible?
– Are partial shipments and transhipments prohibited
contrary to the terms of contract?
– Can the prescribed marking and transport regulations
be complied with?
– Are you familiar with the expressions of time used in
the credit?
– Can the requested documents be presented in the
desired form before the credit validity expires?
– If the credit stipulates a transport document, the documents
have to be presented at the bank not later than
21 days after the date of shipment unless the credit
stipulates another time limit.
– Does the documentary credit contain other deadlines
(e. g. “copy of telex sent to applicant within x days after
shipment”)?
Drafts
– Are you absolutely certain how the draft has to be
issued?
Invoices
– Can the description of the goods in the invoice be
copied exactly from the documentary credit?
Transport documents, general points
– Are you aware that, unless a transport document is
required to be in this form, the banks cannot accept a
document that:
a) it is subject to a charter party (sea transport only),
b) states shipment on deck (sea transport only),
c) provides for transport by sailing ship,
d) is issued by a freight forwarder, unless it is signed by
the freight forwarder in the capacity of a carrier or
multimodal transport operator or by the freight forwarder
in the capacity of a named agent acting for
the named carrier or multimodal transport operator?
– Certain countries require the value of the merchandise
to be indicated on the transport documents for the
export. Does this value correspond to the amount and
the currency in your invoice?
– Rail freight: Can the duplicate of the railway bill be
obtained? (In the case of consolidated consignments,
the Swiss Federal Railways can only give you a book
extract.)
Marine/ocean bills of lading
– If a bill of lading is issued by a freight forwarder, the
freight forwarder must act as carrier or as agent of a
named carrier.
– Is the bill of lading to be issued to order of the buyer
or is it to be made out in his name? In both cases it will
be extremely difficult to arrange any return of the
goods. This point should be taken into full account.
– Does the prescribed freight notation conform to the
terms of delivery?
Charter party bills of lading
– Does the credit call for or allow such a document?
Multimodal transport documents
– If goods must be dispatched by more than one mode
of transport, does the credit provide for presentation of
a multimodal transport document?
Air transport documents
– Does the freight forwarder who will issue the air transport
document act as carrier or as agent for a named
carrier?
Insurance documents
– Can the terms of insurance be fulfilled?
– Are the risks to be covered accurately described in the
documentary credit? (Avoid imprecise formulations
such as “customary risks”, etc.)
– Does the insurance cover meet your requirements?
– Is a policy or a certificate required? (Broker’s
cover notes will not be accepted by the banks unless
expressly permitted in the credit.)
Certificates of origin
– Are the Chamber of Commerce and the consulate
willing to attest or authenticate the statements required
to appear on the certificate of origin?
– If authentication is required, does the relevant country,
if necessary, have a consulate?
– Can a certificate of origin issued in the country of
origin be furnished in time?
– Can the authentication be effected in time?

UCP500, UCPDC

ICC Uniform Customs and Practice for Documentary Credits

A. General Provisions and Definitions..
Article 1.........
Application of UCP...............
Article 2.........
Meaning of Credit............
Article 3.........
Credits V. Contracts.....
Article 4.........
Documents v. Goods/Services/Performances......................
Article 5.........
Instructions to Issue / Amend Credits..........
B Form and Notification of Credits....
Article 6.........
Revocable V. Irrevocable Credits..........
Article 7.........
Advising Bank’s Liability........
Article 8.........
Revocation of a Credit........
Article 9.........
Liability of Issuing and Confirming Banks............
Article 10.......
Types of Credit............
Article 11.......
Teletransmitted and Pre-Advised Credits..........
Article 12.......
Incomplete or Unclear Instructions..
C. Liabilities and Responsibilities......................
Article 13.......
Standard for Examination of Documents
Article 14.......
Discrepant Documents and Notice...
Article 15.......
Disclaimer on Effectiveness of Documents
Article 16.......
Disclaimer on the Transmission of Messages..
Article 17.......
Force Majeure.......................
Article 18.....
Disclaimer for Acts of an Instructed Party...........
Article 19.....
Bank-to-Bank Reimbursement Arrangements.....................
D Documents..........................
Article 20.....
Ambiguity as to the Issuers of Documents.....................
Article 21.....
Unspecified Issuers of Contents of Documents.
Article 22.....
Issuance Date of Documents V. Credit Date.....................
Article 23.....
Marine / Ocean Bill of Lading........
Article 24.....
Non-Negotiable Sea Waybill
Article 25.....
Charter Party Bill of Lading.....................
Article 26.....
Multimodal Transport Document...
Article 27.....
Air Transport Document...
Article 28.....
Road, Rail or Inland Waterway Transport Documents.
Article 29.....
Courier and Post Receipts.....................
Article 30.....
Transport Documents issued by Freight Forwarders
Article 31.....
“On Deck”, “Shipper’s Load and Count”, Name of Consignor.....................
Article 32.....
Clean Transport Documents.
Article 33.....
Freight Payable / Prepaid Transport Documents.
Article 34.....
Insurance Documents.
Article 35.....
Type of Insurance Cover..........
Article 36.....
All Risks Insurance Cover..........
Article 37.....
Commercial Invoice........
Article 38.....
Other documents..
E. Miscellaneous Provisions
Article 39.....
Allowances in Credit Amount, Quantity and Unit Price..
Article 40.....
Partial Shipments / Drawings...
Article 41.....
Instalment shipments / Drawings...
Article 42.....
Expiry Date and Place for Presentation of Documents.....................
Article 43.....
Limitation on the Expiry Date............
Article 44.....
Extension of Expiry Date
Article 45.....
Hours of Presentation.....................
Article 46.....
General Expressions as to Dates for Shipment....
Article 47.....
Date Terminology for Periods of Shipment....
F. Transferable Credit.......
Article 48.....
Transferable Credit.........
G. Assignment of Proceeds..........................
Article 49.....
Assignment of Proceeds....


A. General Provisions and Definitions

Article 1
Application of UCP

The Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No 500, shall apply to all Documentary Credits (including to the extent to which they may be applicable, Standby Letter(s) of Credit) where they are incorporated into the text of the Credit. They are binding on all parties thereto, unless otherwise expressly stipulated in the credit.

Article 2

Meaning of Credit

For the purposes of these Articles, the expressions “Documentary Credit(s) and “Standby Letter(s) of Credit” (hereinafter referred to as “Credit(s)”, mean any arrangement however named or described, whereby a bank (the “issuing Bank”) acting at the request and on the instructions of a customer (the”Applicant”) or on its own behalf.

1. is to make a payment to or the order of a third party (the “Beneficiary”), or is to accept and pay bills of exchange (Draft(s)) drawn by the Beneficiary.
or
2. authorise another bank to effect such payment, or to accept and pay such bills of exchange (Draft(s)),
or
3. authorises another bank to negotiate,

against stipulated document(s), provided that the terms and conditions of the Credit are complied with.

For the purposes of these Articles, branches of a bank in different countries are considered another bank.

Article 3

Credits V. Contracts

A. Credits, by their nature, are separate transactions from the sales or other contract(s) on which they may be based and banks are in no way concerned with or bound by such contract(s), even if any reference whatsoever to such contract(s) is included in the Credit. Consequently, the undertaking of a bank to pay, accept and pay Draft(s) or negotiate and/or to fulfil any other obligation under the Credit, is not subject to claims or defences by the Applicant resulting from his relationships with the Issuing Bank or the Beneficiary.

B. A Beneficiary can in no case avail himself of the contractual relationships existing between the banks or between the Applicant and the Issuing Bank.


Article 4

Documents v. Goods/Services/Performances

In Credit Operations all parties concerned deal with documents, and not with goods, services and/or other performances to which the documents may relate.

Article 5
Instructions to Issue / Amend Credits

A. Instructions for the issuance of a Credit, the Credit itself, instructions for an amendment thereto, and the amendment itself, must be complete and precise.

In order to guard against confusion and misunderstanding, banks should discourage any attempt:

i. to include excessive detail in the Credit or in any amendment thereto;
ii. to give instructions to issue, advise or confirm a Credit by reference to a Credit previously issued (similar Credit) where such previous Credit has been subject to accepted amendment(s), and/or unaccepted amendment(s).

B All instructions for the issuance of a Credit and the Credit itself and, where applicable, all instructions for an amendment thereto and the amendment itself, must state precisely the document(s) against which payment, acceptance or negotiation is to be made.


B Form and Notification of Credits

Article 6

Revocable V. Irrevocable Credits

A. A Credit may either


i. Revocable,

or

ii. Irrevocable

B. The credit, therefore, should clearly indicate whether it is revocable or irrevocable

C. In the absence of such indication the Credit shall be deemed to be irrevocable.







Article 7

Advising Bank’s Liability

A. A credit may be advised to a Beneficiary through another bank (the ‘Advising Bank’) without engagement on the part of the Advising Bank, but the bank, if it elects to advise the credit, shall take reasonable care to check the apparent authenticity of the credit which it advises. If the bank elects not to advise the Credit, it must so inform the Issuing Bank without delay.

B. If the Advising bank cannot establish such apparent authenticity it must inform, without delay, the bank from which the instructions appear to have been received that it has been unable to establish the authenticity of the Credit and if it elects nonetheless to advise the Credit it must inform the Beneficiary that it has not been able to establish the authenticity of the Credit.


Article 8

Revocation of a Credit

A. A revocable Credit may be amended or cancelled by the issuing Bank at any moment and without prior notice to the Beneficiary.

B. However, the Issuing Bank must:

I. reimburse another bank with which a revocable Credit has been made available for sight payment, acceptance or negotiation - for any payment, acceptance or negotiation made by such bank - prior to receipt by it of notice of amendment or cancellation, against documents which appear on their face to be in compliance with the terms and conditions of the credit;

II. reimburse another bank with which a revocable Credit has been made available for deferred payment, if such a bank has, prior to receipt by it of notice of amendment or cancellation, taken up documents which appear on their face to be in compliance with the terms and conditions of the Credit.

Article 9
Liability of Issuing and Confirming Banks

A. An irrevocable Credit constitutes a definite undertaking of the issuing Bank, provided that the stipulated documents are presented to the Nominated Bank or to the Issuing Bank and that the terms and conditions of the Credit are complied with;

I. if the Credit provides for sight payment - to pay at sight;

II. if the Credit provides for deferred payment - to pay on the maturity date(s) determinable in accordance with the stipulations of the credit;

III. if the Credit provides for acceptance:

a) by the issuing Bank - to accept Draft(s) drawn by the Beneficiary on the Isuing bank and pay them at Maturity.

or

b) by another drawee bank - to accept and pay at maturity Draft(s) drawn by the Beneficiary on the Issuing Bank in the event the drawee bank stipulated in the Credit does not accept Draft(s) drawn on it, or to pay Draft(s) accepted but not paid by such drawee bank at maturity;


IV. if the Credit provides for negotiation - to pay without recourse to drawers and/or bonafide holders, Draft(s) drawn by the Beneficiary and/or document(s) presented under the Credit. A Credit should not be issued available by Draft(s) on the Applicant. If the Credit nevertheless calls for Draft(s) on the Applicant, banks will consider such Draft(s) as an additional document(s).

B. A confirmation of an irrevocable Credit by another bank (the “Confirming Bank”) upon the authorisation or request of the Issuing bank, constitutes a definite undertaking of the Confirming Bank, in addition to that of the Issuing Bank, provided that the stipulated documents are presented to the Confirming Bank or to any other Nominated Bank and that the terms and conditions of the Credit are complied with:

I. if the Credit provides for sight payment - to pay at sight;

II. if the Credit provides for deferred payment - to pay on the maturity date(s) determinable in accordance with the stipulations of the credit;

III. if the Credit provides for acceptance:

a) by the Confirming Bank - to accept Draft(s) drawn by the Beneficiary on the Isuing bank and pay them at Maturity.

or

b) by another drawee bank - to accept and pay at maturity Draft(s) drawn by the Beneficiary on the Confirming Bank in the event the drawee bank stipulated in the Credit does not accept Draft(s) drawn on it, or to pay Draft(s) accepted but not paid by such drawee bank at maturity;


IV. if the Credit provides for negotiation - to pay without recourse to drawers and/or bonafide holders, Draft(s) drawn by the Beneficiary and/or document(s) presented under the Credit. A Credit should not be issued available by Draft(s) on the Applicant. If the Credit nevertheless calls for Draft(s) on the Applicant, banks will consider such Draft(s) as an additional document(s).

C i If another bank is authorised or requested by the Issuing Bank to add its confirmation to a Credit but it is not prepared to do so, it must so inform the Issuing Bank without delay.

ii Unless the Issuing bank specifies otherwise in its authorisation or request to add confirmation, the Advising Bank may advise the Credit to the Beneficiary without adding its confirmation.

D i Except as otherwise provided by Article 48, an irrevocable credit can neither be amended nor cancelled without the aggrement of the Issuing Bank, the Confirming Bank, if any, and the Beneficiary.

ii The issuing Bank shall be irrevocably bound by an amendment(s) issued by it from the time of the issuance of such amendment(s). A Confirming Bank may extend its confirmation to an amendment and shall be irrevocably bound as of the time of its advice of the amendment. A Confirming Bank may, however, choose to advise an amendment to the Beneficiary without extending its confirmation and if so, must inform the Issuing Bank and the Beneficiary without delay.

iii The terms of the original credit (or a Credit incorporating previously accepted amendment(s) will remain in force for the Beneficiary until the Beneficiary communicates his acceptance of the amendment to the bank that advised such amendment. The Beneficiary should give notification of acceptance or rejection of amendment(s). If the Beneficiary fails to give such notification, the tender of documents to the Nominated Bank or Issuing Bank, the conform to the Credit and to not yet accepted amendment(s), will be deemed to be notification of acceptance by the Beneficiary of such amendment(s), will be deemed to be notification of acceptance by the Beneficiary of such amendment(s) and as of that moment the Credit will be amended.

iv Partial acceptance of amendments contained in one and the same advice of amendment is not allowed and consequently will not be given any effect.

Article 10

Types of Credit

a. All Credits must clearly indicate whether they are available by sight payment, by deferred payment, by acceptance or by negotiation.

a i Unless the Credit stipulates that it is available only with the Issuing Bank, all credits must nominate the bank (the “Nominated Bank”) which is authorised to pay, to incur a deferred payment undertaking, to accept Draft(s) or to negotiate. In a freely negotiable Credit, any bank is a Nominated Bank.

Presentation of documents must be made to the Issuing Bank or the Confirming Bank, if any, or any other Nominated Bank

ii Negotiation means the giving of value for Draft(s) and/or document(s) by the bank authorised to negotiate. Mere examination of the documents without giving of value does not constitute a negotiation.

c. Unless the Nominated Bank is the confirming bank, nomination by the Issuing Bank does not constitute any undertaking by the Nominated Bank to pay, to incur a deferred payment undertaking, to accept Draft(s), or to negotiate. Except where expressly agreed to by the Nomiated Bank and so communicated to the Beneficiary, the Nominated Bank’s receipt of and/or examination and/or forwarding of the documents does not make that bank liable to pay, to incur a deferred payment undertaking, to accept Draft(s), or to negotiate.

d. By nominating another bank, or by allowing for negotiation by any bank, or by authorising or requesting another bank to add its confirmation, the Issuing Bank authorises such bank to pay, accept Draft(s) or negotiate as the case may be, against documents which appear on their face to be in compliance with the terms and conditions of the Credit and undertakes to reimburse such bank in accordance with the provisions of these Articles.

Article 11
Teletransmitted and Pre-Advised Credits

a i When an issuing bank instructs an Advising Bank by an authenticated teletransmission to advise a Credit or an amendment to a Credit, the teletransmission will be deemed to be the operative Credit instrument or the operative amendment, and no mail confirmation should be sent. Should a mail confirmation nevertheless be sent, it will have not effect and the Advising bank will have no obligation to check such mail confirmation against the operative Credit instrument or the operative amendment received by teletransmission.

ii If the teletransmission states “full details to follow” (or words of similar effect) or states the mail confirmation is to be the operative Credit instrument or the operative amendment, then the teletransmission will not be deemed to be the operative Credit instrument or the Operative amendment. The issuing bank must forward the operative credit instrument or the operative amendment to such Advising Bank without delay.

a If a bank uses the services of an Advising Bank to have the Credit advised to the Beneficiary, it must also use the services of the same bank for advising an amendment(s).

b A preliminary advice of the issuance or amendment of an irrevocable Credit (pre-advice), shall only be given by an Issuing Bank if such bank is prepared to issue the operative Credit instrument or the operative amendment thereto. Unless otherwise stated in such preliminary advice by the issuing bank, an issuing bank having given such pre-advice shall be irrevocably committed to issue or amend the Credit in terms not consistent with the pre-advice, without delay.


Article 12

Incomplete or Unclear Instructions

If incomplete or unclear instructions are received to advise, confirm or amend a credit, the bank requested to act on such instructions may give preliminary notification to the Beneficiary for information only and without responsibility. This preliminary notification should state clearly that the notification is provided for information only and without the responsibility of the Advising Bank. In any event, the Advising Bank must inform the Issuing Bank of the action taken and request it to provide the necessary information.

The Issuing Bank must provide the necessary information without delay. The Credit will be advised, confirmed or amended, only when complete and clear instructions have been received and if the Advising Bank is then prepared to act on the instructions.

C. Liabilities and Responsibilities
Article 13
Standard for Examination of Documents

a Banks must examine all documents stipulated in the Credit with reasonable care, to ascertain whether or not they appear, on their face, to be in compliance with the terms and conditions of the Credit. Compliance of the stipulated documents on their face with the terms and conditions of the Credit, shall be determined by international standard banking practice as reflected in these Articles. Documents which appear on their face to be inconsistent with one another will be considered as not appearing on their face to be in compliance with the terms and conditions of the Credit.

b The Issuing Bank, the Confirming Bank, if any, or a Nominated Bank acting on their behalf, shall each have a reasonable time, not exceed seven banking days following the day of receipt of the documents, to examine the documents and determine whether to take up or refuse the documents and to inform the party from which it received the documents accordingly.

c If a Credit contains conditions without stating the document(s) to be presented in compliance therewith, banks will deem such conditions as not stated and will disregard them.


Article 14
Discrepant Documents and Notice

a When the Issuing Bank authorises another bank to pay, incur a deferred payment undertaking, accept Draft(s), or negotiate against documents which appear on their face to be in compliance with the terms and conditions of the Credit, the Issuing Bank and the Confirming Bank, if any, are bound:
i to reimburse the Nominated Bank which has paid, incurred a deferred payment undertaking, accepted Draft(s), or negotiated,
ii to take up the documents.

b. Upon receipt of the documents the Issuing Bank and/or Confirming Bank, if any, or a Nominated Bank acting on their behalf, must determine on the basis of the documents alone whether or not they appear on their face to be in compliance with the terms and conditions of the Credit. If the documents appear on their face not to be in compliance with the terms and conditions of the Credit, such banks may refuse to take up the documents.

c. If the Issuing Bank determines that the documents appear on their face not to be in compliance with the terms and conditions of the Credit, it may in its sole judgement approach the Applicant for a waiver of the discrepancy(ies). This does not, however, extend the period mentioned in sub-Article 13(b).

b i If the Issuing Bank and/or Confirming Bank, if any, or a Nominated Bank acting on their behalf, decides to refuse the documents, it must give notice to that effect by telecommunication or, if that is not possible, by other expeditious means, without delay but no later than the close of the seventh banking day following the day of receipt of the documents. Such notice shall be given to the bank from which it received the documents, or to the Beneficiary, if it received the documents directly from him.

ii Such notice must state all discrepancies in respect of which the bank refuses the documents and must also state whether it is holding the documents at the disposal of, or it is returning them, to the presenter.

iii The issuing bank and/or Confirming bank, if any, shall then be entitled to claim from the remitting bank refund, with interest, of any reimbursement which has been made to that bank.

e. If the Issuing Bank and/or Confirming bank, if any, fails to act in accordance with the provisions of this Article and/or fails to hold the documents at the disposal or, or return them to the presenter, the Issuing Bank and/or Confirming Bank, if any, shall be precluded from claiming that the documents are not in compliance with the terms and conditions of the Credit.

f. If the remitting bank draws the attention of the Issuing Bank and/or Confirming Bank, if any, to any discrepancy(ies) in the document(s) or advises such banks that it has paid, incurred a deferred payment undertaking, accepted Draft(s) or negotiated under reserve or against an indemnity in respect of such discrepancy(ies), the Issuing bank and/or Confirming bank, if any, shall not be thereby relieved from any of their obligations under any provision of this Article. Such reserve or indemnity concerns only the relations between the remitting bank and the party towards whom the reserve was made, or from whom, or on whose behalf, the indemnity was obtained.

Article 15
Disclaimer on Effectiveness of Documents

Banks assume no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s), or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon; nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s), or for the good faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignees or the insurers of the goods, or any other person whomsoever.


Article 16
Disclaimer on the Transmission of Messages

Banks assume no liability or responsibility for the consequences arising out of delay and/or loss in transit of any message(s), letter(s) or document(s), or for delay, mutilation or other error(s) arising in the transmission of any telecommunication. Banks assume no liability or responsibility for errors in translation and/or interpretation of technical terms, and reserve the right to transmit Credit terms without translating them.

Article 17
Force Majeure

Banks assume no liability or responsibility for the consequences arising out of the interruption of their business by Acts of God, riots, civil commotion’s, insurrections, wars or any other causes beyond their control, or by any strikes or lockouts. Unless specifically authorised, banks will not, upon resumption of their business, pay, incur a deferred payment undertaking, accept Draft(s) or negotiate under Credits which expired during such interruption of their business.


Article 18
Disclaimer for Acts of an Instructed Party

a Banks utilising the services of another bank or other banks for the purpose of giving effect to the instructions of the Applicant do so for the account and at the risk of such Applicant.

b Banks assume no liability or responsibility should the instructions they transmit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).

a i A party instructing another party to perform services is liable for any charges, including commissions, fees, costs or expenses incurred by the instructed party in connection with its instructions.

ii Where a Credit stipulates that such charges are for the account of a party other than the instructing party, and charges cannot be collected, the instructing party remains ultimately liable for the payment thereof.

d The Applicant shall be bound by and liable to indemnify the banks against all obligations and responsibilities imposed by foreign laws and usages.

Article 19
Bank-to-Bank Reimbursement Arrangements

a If an Issuing Bank intends that the reimbursement to which a paying, accepting or negotiating bank is entitled, shall be obtained by such bank(the “claiming Bank”), claiming on another party(the ”Reimbursing Bank”), it shall provide such Reimbursing bank in good time with the proper instructions or authorisation to honour such reimbursement claims.

b Issuing Banks shall not require a Claiming Bank to supply a certificate of compliance with the terms and conditions of the Credit to the Reimbursing Bank.

c An Issuing Bank shall not be relieved from any of its obligations to provide reimbursement if and when reimbursement is not received by the Claiming Bank from the Reimbursing Bank.

d The Issuing bank shall be responsible to the Claiming Bank for any loss of interest if reimbursement is not provided by the Reimbursing Bank on first demand, or as otherwise specified in the Credit, or mutually agreed as the case may be.

e The Reimbursing Bank’s charges should be for the account of the Issuing Bank. However, in cases where the charges are for the account of another party, it is the responsibility of the Issuing Bank to so indicate in the Original Credit and in the reimbursement authorisation. In cases where the Reimbursing Bank’s charges are for the account of another party they shall be collected from the Claiming Bank when the Credit is drawn under. In cases where the Credit is not drawn under, the Reimbursing Bank’s charges remain the obligation of the issuing bank.



D Documents
Article 20
Ambiguity as to the Issuers of Documents

a. Terms such as “first class”, “well known”, “qualified”, “independent”, “official”, “competent”, “local” and the like, shall not be used to describe the issuers of any document(s) to be presented under a Credit. If such terms are incorporated in the Credit, banks will accept the relative document(s) as presented, provided that it appears on its face to be in compliance with the other terms and conditions of the Credit and not to have been issued by the Beneficiary.

b. Unless otherwise stipulated in the Credit, banks will also acept as an original document(s), a document(s) produced or appearing to have been produced:
i. by reprographic, automated or computerised systems;
ii. as carbon copies;
provided that it is marked as original and, where necessary, appears to be signed.

A document may be signed by handwriting, by facsimile signature, by perforated signature, by stamp, by symbol, or by any other mechanical or electronic method of authentication.

c. Unless otherwise stipulated in the Credit, banks will accept as a copy(ies), a document(s) either labelled copy or not marked as an original - a copy(ies) need not be signed.

Credits that require multiple document(s) such as “duplicate” “twofold”, “two copies” and the like, will be satisfied by the presentation of one original and the remaining number in copies except where the document itself indicates otherwise.

d. Unless otherwise stipulated in the Credit, a condition under a Credit calling for a document to be authenticated, validated, legalised, visaed, certified or indicating a similar requirement, will be satisfied by any signature, mark, stamp or label on such document that on its face appears to satisfy the above condition.
Article 21
Unspecified Issuers of Contents of Documents

When documents other than transport documents, insurance documents and commercial invoices are called for, the Credit should stipulate by whom such documents are to be issued and their wording or data content. If the Credit does not so stipulate, banks will accept such documents as presented, provided that their data content is not inconsistent with any other stipulated document presented.

Article 22
Issuance Date of Documents V. Credit Date

Unless otherwise stipulated in the Credit, banks will accept a document bearing a date of issuance prior to that of the Credit, subject to such document being presented within the time limits set out in the Credit and in these Articles.

Article 23
Marine / Ocean Bill of Lading

a. If a Credit calls for a bill of lading covering a port-to-portshipment, banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:
i. appears on its face to indicate the name of the carrier and to have been signed or otherwise authenticated by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.

Any signature or authentication of the carrier or master must be identified as carrier or master, as the case may be. An agent signing or authenticating for the carrier or master must also indicate the name and the capacity of the party, i.e. carrier or master, on whose behalf that agent is acting,

and

ii. indicates that the goods have been loaded on board, or shipped on a named vessel

Loading on board or shipment on a named vessel may be indicated by pre-printed wording on the bill of lading that the goods have been loaded on board a named vessel or shipped on a named vessel, in which case the date of issuance of the bill of lading will be deemed to be the date of loading on board and the date of shipment

In all other cases loading on board a named vessel must be evidenced by a notation on the bill of lading which gives the date on which the goods have been loaded on board, in which case the date of the on board notation will be deemed to be the date of shipment.

If the bill of lading contains the indication “intended vessel”, or similar qualification in relation to the vessel, loading on board a named vessel must be evidenced by an on board notation on the bill of lading which, in addition to the date on which the goods have been loaded on board, also includes the name of the vessel on which the goods have been loaded, even if they have been loaded on the vessel named as the “intended vessel”.

If the bill of lading indicates a place of receipt or taking in charge different from the port of loading, the on board notation must also include the port of loading stipulated in the Credit and the name of the vessel on which the goods have been loaded, even if they have been loaded on the vessel named in the bill of lading. This provision also applies whenever loading on board the vessel is indicated by pre-printed wording on the bill of lading.

and

iii. indicates the port of loading and the port of discharge stipulated in the Credit, notwithstanding that it:

· indicates a place of taking in charge different from the port of loading, and/or a place of final destination different from the port of discharge,

and / or

· contains the indication “intended” or similar qualification in relation to the port of loading and/or port of discharge, as long as the document also states the ports of loading and/or discharge stipulated in the Credit

and

iv. consists of a sole original bill of lading or, if issued in more than one original, the full set as so issued,

and

v. appears to contain all of the terms and conditions of carriage, or some of such terms and conditions by reference to a source or document other than the bill of lading (short form/blank back bill of lading); banks will not examine the contents of such terms and conditions,

and

vi. contains no indication that it is subject to a charter party and/or no indication that the carrying vessel is propelled by sail only,

and

vii. in all other respects meet the stipulations of the Credit.


b. For the purpose of this Article, transhipment means unloading and reloading from one vessel to another vessel during the course of ocean carriage from the port of loading to the port of discharge stipulated in the Credit.

c. Unless transhipment is prohibited by the terms of the Credit, banks will accept a bill of lading which indicates that the goods will be transhipped, provided that the entire ocean carriage is covered by one and the same bill of lading.

d. Even if the Credit prohibits transhipment, banks will accept a bill of lading which:
· indicates that transhipment will take place as long as the relevant cargo is shipped in Container(s), Trailer(s) and/or “LASH” barge(s) as evidenced by the bill of lading, provided that the entire ocean carriage is covered by one and the same bill of lading.

and/or

· Incorporates clauses stating that the carrier reserves the right to tranship.

Article 24
Non-Negotiable Sea Waybill

a. If a Credit calls for a non-negotiable sea way bill covering a port-to-portshipment, banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:
i. appears on its face to indicate the name of the carrier and to have been signed or otherwise authenticated by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.

Any signature or authentication of the carrier or master must be identified as carrier or master, as the case may be. An agent signing or authenticating for the carrier or master must also indicate the name and the capacity of the party, i.e. carrier or master, on whose behalf that agent is acting,

and

ii. indicates that the goods have been loaded on board, or shipped on a named vessel

Loading on board or shipment on a named vessel may be indicated by pre-printed wording on the non-negotiable sea way bill that the goods have been loaded on board a named vessel or shipped on a named vessel, in which case the date of issuance of the bill of lading will be deemed to be the date of loading on board and the date of shipment

In all other cases loading on board a named vessel must be evidenced by a notation on the non-negotiable sea way bill which gives the date on which the goods have been loaded on board, in which case the date of the on board notation will be deemed to be the date of shipment.

If the non-negotiable sea way bill contains the indication “intended vessel”, or similar qualification in relation to the vessel, loading on board a named vessel must be evidenced by an on board notation on the non-negotiable sea way bill which, in addition to the date on which the goods have been loaded on board, also includes the name of the vessel on which the goods have been loaded, even if they have been loaded on the vessel named as the “intended vessel”.

If the non-negotiable sea way bill indicates a place of receipt or taking in charge different from the port of loading, the on board notation must also include the port of loading stipulated in the Credit and the name of the vessel on which the goods have been loaded, even if they have been loaded on the vessel named in the non-negotiable sea way bill. This provision also applies whenever loading on board the vessel is indicated by pre-printed wording on the non-negotiable sea way bill

and

iii. indicates the port of loading and the port of discharge stipulated in the Credit, notwithstanding that it:

· indicates a place of taking in charge different from the port of loading, and/or a place of final destination different from the port of discharge,

and / or

· contains the indication “intended” or similar qualification in relation to the port of loading and/or port of discharge, as long as the document also states the ports of loading and/or discharge stipulated in the Credit

and

iv. consists of a sole original non-negotiable sea way bill or, if issued in more than one original, the full set as so issued,

and

v. appears to contain all of the terms and conditions of carriage, or some of such terms and conditions by reference to a source or document other than the non-negotiable sea way bill (short form/blank back non-negotiable sea way bill); banks will not examine the contents of such terms and conditions,




and

vi. contains no indication that it is subject to a charter party and/or no indication that the carrying vessel is propelled by sail only,

and

vii. in all other respects meet the stipulations of the Credit.


b. For the purpose of this Article, transhipment means unloading and reloading from one vessel to another vessel during the course of ocean carriage from the port of loading to the port of discharge stipulated in the Credit.

c. Unless transhipment is prohibited by the terms of the Credit, banks will accept a non-negotiable sea way bill which indicates that the goods will be transhipped, provided that the entire ocean carriage is covered by one and the same non-negotiable sea way bill.

d. Even if the Credit prohibits transhipment, banks will accept a non-negotiable sea way bill which:
· indicates that transhipment will take place as long as the relevant cargo is shipped in Container(s), Trailer(s) and/or “LASH” barge(s) as evidenced by the non-negotiable sea way bill, provided that the entire ocean carriage is covered by one and the same non-negotiable sea way bill.

and/or


· Incorporates clauses stating that the carrier reserves the right to tranship.


Article 25
Charter Party Bill of Lading

a. If a Credit calls for or permits a charter party bill of lading, banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:
i. contains any indication that it is subject to a charter party,

and

ii. appears on its face to have been signed or otherwise authenticated by:
- the master or a named agent for or on behalf of the master, or
- the owner or a named agent for or on behalf of the owner.

Any signature or authentication of the master or owner must be identified as master or owner, as the case may be. An agent signing or authenticating for the master or owner must also indicate the name and the capacity of the party, i.e. master or owner or on whose behalf that agent is acting,

and

iii. does or does not indicate the name of the carrier



and

iv. indicates that the goods have been loaded on board, or shipped on a named vessel

Loading on board or shipment on a named vessel may be indicated by pre-printed wording on the bill of lading that the goods have been loaded on board a named vessel or shipped on a named vessel, in which case the date of issuance of the bill of lading will be deemed to be the date of loading on board and the date of shipment

In all other cases loading on board a named vessel must be evidenced by a notation on the bill of lading which gives the date on which the goods have been loaded on board, in which case the date of the on board notation will be deemed to be the date of shipment.

and

v. indicates the port of loading and the port of discharge stipulated in the credit,

and

vi. consists of a sole original bill of lading or, if issued in more than one original, the full sets as so issued

and

vii. contains no indication that the carrying vessel is propelled by sail only,

and

viii. in all other respects meets the stipulations of the Credit.


b. Even if the Credit requires the presentation of a charter party contract in connection with a charter party bill of lading, banks will not examine such charter party contract, but will pass it on without responsibility on their part.
Article 26
Multimodal Transport Document

a. If a Credit calls for a transport document covering at least two different modes of transport (multimodal transport), banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:

i. appears on its face to indicate the name of the carrier or multimodal transport operator and to have been signed or otherwise authenticated by:
- the carrier or multimodal transport operator or a named agent for or on behalf of the master, or
- the master or a named agent for or on behalf of the master

Any signature or authentication of the carrier, multimodal transport operator or master must be identified as carrier, multimodal transport operator or master as the case may be. An agent signing or authenticating for the carrier, multimodal transport operator or master must also indicate the name and the capacity of the party, i.e. carrier, multimodal transport operator or master on whose behalf that agent is acting,



ii. indicates that the goods have been dispatched, or taken in charge or loaded on board.

Dispatch, taking in charge or loading on board may be indicated by wording to that effect on the multimodal transport document and the date of issuance will be deemed to be that date of dispatch, taking in charge or loading on board and the date of shipment. However, if the document indicates, by stamp or otherwise, a date of dispatch, taking in charge or loading on board, such date will be deemed to be the date of shipment.

iii. Indicates the place of taking in charge stipulated in the Credit which may be different from the port, airport or place of loading, and the place of final destination stipulated in the Credit which may be different from the port, airport or place of discharge

and/or

contains the indication “intended or similar qualification in relation to the vessel and/or port of loading and/or port of discharge.

iv. Consists of a sole original multimodal transport document or, if issued in more than one original, the full set as so issued,

and

v. appears to contain all of the terms and conditions of carriage, or some of such terms and conditions by reference to a source or document other than the multimodal transport document (shortform/blank back multimodal transport document); banks will not examine the contents of such terms and conditions,

and


vi. contains no indication that it is subject to a charter party and/or no indication that the carrying vessel is propelled by sail only,

and

vii. in all other respects meets the stipulations of the Credit.


b. Even if the Credit prohibits transhipment, banks will accept a multimodal transport document which indicates that transhipment will or may take place, provided that the entire carriage is covered by one and the same multimodal transport document.

Article 27
Air Transport Document

a. If a Credit calls for an air transport document, banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:

appears on its face to indicate the name of the carrier and to have been signed or otherwise authenticated by:

- the carrier, or

- a named agent for or on behalf of the carrier.

Any signature or authentication of the carrier, must be identified as carrier. An agent signing or authenticating for the carrier, must also indicate the name and the capacity of the party, i.e. carrier, on whose behalf that agent is acting,

and

ii. indicates that the goods have been accepted for carriage,

and

iii. where the Credit calls for an actual date of dispatch, indicates a specific notation of such date, the date of dispatch so indicated on the air transport document will be deemed to be the date of shipment.

For the purpose of this Article, the information appearing in the box on the air transport document (marked “For Carrier use only” or similar expression) relative to the flight number and date will not be considered as a specific notation of such date of dispatch.

In all other cases, the date of issuance of the air transport document will be deemed to be the date of shipment,

and

iv. indicates the airport of departure and the airport of destination stipulated in the Credit.

And

v. appears to be the original for consignor/shipper even if the Credit stipulates a full set of originals, or similar expressions,

and

vi. appears to contain all of the terms and conditions of carriage, or some of such terms and conditions, by reference to a source or document other than the air transport document; banks will not examine the contents of such terms and conditions,

and

vii. in all other respects meet the stipulations of the Credit

b. for the purpose of this Article, transhipment mens unloading and reloading from one aircraft to another aircraft during the course of carriage from the airport of departure to the airport of destination stipulated in the Credit.

c. Even if the Credit prohibits transhipment, banks will accept an air transport document which indicates that transhipment will or may take place, provided that the entire carriage is covered by one and the same air transport document.

Article 28
Road, Rail or Inland Waterway Transport Documents

a. If a Credit calls for a road, rail or inland waterway transport document, banks will, unless otherwise stipulated in the Credit, accept a document of the type called for, however named, which:

appears on its face to indicate the name of the carrier and to have been signed or otherwise authenticated by the carrier or a named agent for or on behalf of the carrier and/or to bear a reception stamp or other indication of receipt by the carrier or a named agent for or on behalf of the carrier.

Any signature ,authentication, reception stamp or other indication of receipt of the carrier, must be identified on its face as that of the carrier. An agent signing or authenticating for the carrier, must also indicate the name and the capacity of the party, i.e. carrier, on whose behalf that agent is acting,

and

indicates that the goods have been received for shipment, dispatch or carriage or wording to this effect. The date of issuance will be deemed to be the date of shipment unless the transport document contains a reception stamp, in which case the date of the reception stamp will be deemed to be the date of shipment.

and

indicates the place of shipment and the place of destination stipulated in the Credit

and

in all other respects meets the stipulations of the Credit.
b. In the absence of any indication on the transport document as to the numbers issued, banks will accept the transport document(s) presented as constituting a full set. Banks will accept as original(s) the transport document(s) whether marked as original(s) or not.

c. For the purpose of this Article, transhipment means unloading and reloading from one means of conveyance to another means of conveyance, in different modes of transport, during the course of carriage from the place of shipment to the place of destination stipulated in the Credit.

d. Even if the Credit prohibits transhipment, banks will accept a road, rail, or inland waterway transport document which indicates that transhipment will or may take place, provided that the entire carriage is covered by one and the same transport document and within the same mode of transport.

Article 29
Courier and Post Receipts

a. If a credit calls for a post receipt or certificate of posting, banks will, unless otherwise stipulated in the Credit, accept a post receipt or certificate of posting which:

appears on its face to have been stamped or otherwise authenticated and dated in the place from which the Credit stipulates the goods are to be shipped or dispatched and such date will be deemed to be the date of shipment or dispatch

and

in all other respects meets the stipulations of the Credit.

b. If a Credit calls for a document issued by a courier or expedited delivery service evidencing receipt of the goods for delivery, banks will, unless otherwise stipulated in the Credit, accept a document, however named, which:

appears on its face to indicate the name of the courier/service, and to have been stamped, signed or otherwise authenticated by such named courier/service (unless the Credit specifically calls for a document issued by a named courier/service, banks will accept a document issued by any Courier/Service),

and

indicates a date of pick-up or of receipt or wording to this effect, such date being deemed to be the date of shipment or dispatch,

and

in all other respects meet the stipulations of the Credit.

Article 30
Transport Documents issued by Freight Forwarders

Unless otherwise authorised in the Credit, banks will only accept a transport document issued by a freight forwarder if it appears on its face to indicate:

· the name of the freight forwarder as a carrier or multimodal transport operator and to have been signed or otherwise authenticated by the freight forwarder as carrier or multimodal transport operator,

or

· the name of the carrier or multimodal transport operator and to have been signed or otherwise authenticated by the freight forwarder as a named agent for or on behalf of the carrier or multimodal transport operator.

Article 31
“On Deck”, “Shipper’s Load and Count”, Name of Consignor

Unless otherwise stipulated in the Credit, banks will accept a transport document which:

i. does not indicate, in the case of carriage by sea or by more than one means of conveyance including carriage by sea, that the goods are or will be loaded on deck. Nevertheless, banks will accept a transport document which contains a provision that the goods may be carried on deck, provided that it does not specifically state that they are or will be loaded on deck,

and / or

ii. bears a clause on the face thereof such as “Shipper’s load and count” or “said by shipper to contain” or words of similar effect,

and / or

iii. indicates as the consignor of the goods a party other than the Beneficiary of the Credit.


Article 32
Clean Transport Documents

a. A clean transport document is one which bears no clause or notation which expressly declares a defective condition of the goods and/or the packaging.

b. Banks will not accept transport documents bearing such clauses or notations unless the Credit expressly stipulates the clauses or notations which may be accepted

c. Banks will regard a requirement in a Credit for a transport document to bear the clause “clean on board” as complied with if such transport document meets the requirement of this Article and of Articles 23,24,25,26,27,28 or 30.

Article 33
Freight Payable / Prepaid Transport Documents

a. Unless otherwise stipulated in the Credit, or inconsistent with any of the documents presented under the Credit, banks will accept transport documents stating that freight or transportation charges (hereafter referred to as “freight”) have still to be paid.

b. If a Credit stipulates that the transport document has to indicate that freight has been paid or prepaid, banks will accept a transport document on which words clearly indicating payment or prepayment of freight appear by stamp or otherwise, or on which payment or prepayment of freight is indicated by other means. If the Credit requires courier charges to be paid or prepaid banks will also accept a transport document issued by a courier or expedited delivery service evidencing that courier charges are for the account of a party other than the consignee.

c. The words “freight prepayable” or “freight to be prepaid” or words of similar effect, if appearing on transport documents, will not be accepted as constituting evidence of the payment of freight.

d. Banks will accept transport documents bearing reference by stamp or otherwise to costs additional to the freight, such as costs of, or disbursements incurred in connection with, loading, unloading or similar operations, unless the conditions of the Credit specifically prohibit such reference.

Article 34
Insurance Documents

a. Insurance documents must appear on their face to be issued and signed by insurance companies or underwriters or their agents.

b. If the insurance document indicates that it has been issued in more than one original, all the originals must be presented unless otherwise authorised in the Credit.

c. Cover notes issued by brokers will not accepted, unless specifically authorised in the Credit.

d. Unless otherwise stipulated in the Credit, banks will accept an insurance certificate or a declaration under an open cover pre-signed by insurance companies or underwriters or their agents. If a Credit specifically calls for an insurance certificate or a declaration under an open cover, banks will accept, in lieu thereof, an insurance policy.


Article 35
Type of Insurance Cover


Credits should stipulate the type of insurance required and, if any, the additional risks which are to be covered, if any, the additional risks which are to be covered. Imprecise terms such as "usual risks" or "customary risks" shall not be used; if they are used, banks will accept insurance documents as presented without responsibility for any risks not being covered.
Failing specific stipulations in the Credit, banks will accept insurance documents as presented, without responsibility for any risks not being covered.
Unless otherwise stipulated in the Credit, banks will accept an insurance document which indicates that the cover is subject to a franchise or an excess (deductible).


Article 36
All Risks Insurance Cover

Where a credit stipulates "insurance against all risks", banks will accept an insurance document which contains any "all risks", notation or clause, whether or not bearing the heading "all risks",even if the insurance document indicates that certain risks are excluded, without responsibility for any risk(s) not being covered.

Article 37
Commercial Invoice

Unless otherwise stipulated in the Credit, Commercial Invoices;
must appear on their face to be issued by the Beneficiary named in the Credit (except as provided in Article 48)
must be made out in the name of the Applicant (except as provided in sub-article 48)
and
need not be signed


Unless otherwise stipulated in the Credit, banks may refuse commercial invoices issued for amounts in excess of the amount permitted by the Credit. Nevertheless, if a bank authorised to pay, incur a deferred payment undertaking, accept Draft(s), or negotiate under a Credit accepts such invoices, its decision will be binding upon all parties, provided that such bank has not paid, incurred a deferred payment undertaking, accepted Draft(s) or negotiated for an amount in excess of that permitted by the Credit.
The description of the goods in the commercial invoice must correspond with the description in the Credit. In all other documents, the goods may be described in general terms not inconsistent with the description of the goods in the Credit.


Article 38
Other documents

If a Credit calls for an attestation or certification of weight in the case of transport other than by sea, banks will accept a weight stamp or declaration of weight which appears to have been superimposed on the transport document by the carrier or his agent unless the Credit specifically stipulates that the attestation or certification of weight must be by means of a separate document.


E. Miscellaneous Provisions

Article 39
Allowances in Credit Amount, Quantity and Unit Price

The words "about", "approximately", "circa" or similar expression used in connection with the amount of the Credit or the quantity or the unit price stated in the Credit are to be construed as allowing a difference not to exceed 10% more or 10% less than the amount or the quantity or the unit price to which they refer.
Unless a Credit stipulates that the quantity of the goods specified must not be exceeded or reduced, a tolerance of 5% more or 5% less will be permissible, always provided that the amount of the drawings does not exceed the amount of the Credit. This tolerance does not apply when the Credit stipulates the quantity in terms of a stated number of packing units or individual items.
Unless a Credit which prohibits partial shipments stipulates otherwise, or unless sub-Article(b) above is applicable, a tolerance of 5% less in the amount of the drawing will be permissible, provided that if the Credit stipulates the quantity of the goods, such quantity of goods is shipped in full, and if the Credit stipulates a unit price, such price is not reduced. This provision does not apply when expressions referred to in Sub-Article(a) above are used in the Credit.

Article 40

Partial Shipments / Drawings

Partial drawings and / or shipments are allowed, unless the Credit stipulates otherwise.
Transport documents which appear on their face to indicate that shipment has been made on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering partial shipments, even if the transport documents indicate different dates of shipment and/or different ports of loading, places of taking in charge, or despatch
Shipments made by post or by courier will not be regarded as partial shipments if the post receipts or certificates of posting or courier's receipts or dispatch notes appear to have been stamped, signed or otherwise authenticated in the place from which the Credit stipulates the goods are to be dispatch and on the same date.






Article 41
Instalment shipments / Drawings

If drawings and/or shipments by instalments within given periods are stipulated in the Credit and any instalments is not drawn and/or shipped within the period allowed for that instalment, the Credit ceases to be available for that and any subsequent instalments, unless otherwise stipulated in the Credit.

Article 42
Expiry Date and Place for Presentation of Documents

All Credits must stipulate an expiry date and a place for presentation of documents for payment, acceptance, or with the exception of freely negotiable Credits, a place for presentation of documents for negotiation. An expiry date stipulated for payment, acceptance or negotiation will be construed to express an expiry date for presentation of documents.
Except as provided in sub-Article 44(a), documents must be presented on or before such expiry date.
If an Issuing bank states that the Credit is to be available "for one month", "for six months", or the like, but does not specify the date from which the time is to run, the date of issuance of the Credit by the Issuing Bank will be deemed to be the first day from which such time is to run. Banks should discourage indication of the expiry date of the Credit in this manner.

Article 43
Limitation on the Expiry Date

In addition to stipulating an expiry date for presentation of documents, every Credit which calls for a transport documents(s) should also stipulate a specified period of time after the date of shipment during which presentation must be made in compliance with the terms and conditions of the Credit. If no such period of time is stipulated, banks will not accept documents presented to them later than 21 days after the date of shipment. In any event, documents must be presented not later than the expiry date of the Credit.
In cases in which sub-Article 40(b) applies, the date of shipment will be considered to be the latest shipment date on any of the transport documents presented.

Article 44
Extension of Expiry Date

If the expiry date of the Credit and/or the last day of the period of time for presentation of documents stipulated by the Credit or applicable by virtue of Article 43 falls on a day on which the bank to which presentation has to be made is closed for reasons other than those referred to in Article 17, the stipulated expiry date and/or the last day of the period of time after the date of shipment for presentation of documents, as the case may be, shall be extended to the first following day on which such bank is open.
The latest date for shipment shall not be extended by reason of the extension of the expiry date and/or the period of time after the date of shipment for presentation of documents in accordance with sub-Article(a) above. If no such latest date for shipment is stipulated in the Credit or amendments thereto, banks will not accept transport documents indicating a date of shipment later than the expiry date stipulated in the Credit or amendments thereto.
The bank to which presentation is made on such first following business day must provide a statement that the documents were presented within the time limits extended in accordance with sub-Article44(a) of the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No.500.

Article 45

Hours of Presentation

Banks are under no obligation to accept presentation of documents outside their banking hours.

Article 46

General Expressions as to Dates for Shipment

Unless otherwise stipulated in the Credit, the expression "shipment" used in stipulating an earliest and/or a latest date for shipment will be understood to include expressions such as "loading on board", "dispatch", "accepted for carriage", "date of post receipt", "date of pick-up", and the like, and in the case of a Credit calling for a multimodal transport document the expression "taking in charge".
Expressions such as "prompt", "immediately", "as soon as possible", and the like should not be used. If they are used banks will disregard them
If the expression "on or about" or similar expressions are used, banks will interpret them as a stipulation that shipment it to be made during the period from five days before to five days after the specified date, both end days included.

Article 47

Date Terminology for Periods of Shipment

The words "to", "until", "till", "from" and words of similar import applying to any date or period in the Credit referring to shipment will be understood to include the date mentioned.
The word "after" will be understood to exclude the date mentioned
The terms "first half", "second half" of a month shall be construed respectively as the 1st to the 15th, and the 16th to the last day of such month, all dates inclusive
The terms "beginning", "middle", or "end" of a month shall be construed respectively as the 1st to the 10th, the 11th to the 20th, and the 21st to the last day of such month, all dates inclusive.

F. Transferable Credit

Article 48
Transferable Credit

A transferable Credit is a Credit under which the Beneficiary (First Beneficiary) may request the bank authorised to pay, incur a deferred payment undertaking, accept or negotiate (the "Transferring Bank"), or in the case of a freely negotiable Credit the bank specifically authorised in the Credit as a Transferring Bank, to make the Credit available in whole in part to one ore more other Beneficiary(ies) (Second Beneficiary(ies)).
A Credit can be transferred only if it is expressly designated as "transferable" by the Issuing Bank, Terms such as "divisible", "fractionable", "assignable", and "transmissible" do not render the Credit transferable. If such terms are used they shall be disregarded.
The Transferring Bank shall be under no obligation to effect such transfer except to the extent and in the manner expressly consented to by such bank
At the time of making a request for transfer and prior to transfer of the Credit, the First Beneficiary must irrevocably instruct the Transferring Bank whether or not he retains the right to refuse to allow the Transferring Bank to advise amendments to the Second Beneficiary(ies). If the Transferring Bank consents to the transfer under these conditions, it must at the time of transfer, advise the Second Beneficiary(ies) of the First Beneficiary's instructions regarding amendments.
If a Credit is transferred to more than one Second Beneficiary(ies), refusal of an amendment by one or more Second Beneficiciary(ies) does not invalidate the acceptance(s) by the other Second Beneficiary(ies) with respect to whom the Credit will be amended accordingly. With respect to the Second Beneficiary(ies) who rejected the amendment, the Credit will remain unamended.
Transferring Bank charges in respect of transfers including commissions, fees, costs or expenses are payable by the First Beneficiary, unless otherwise agreed. If the Transferring Bank agrees to transfer the Credit it shall be under no obligation to effect the transfer until such charges are paid.
Unless otherwise stated in the Credit, a transferable Credit can be transferred once only. Consequently, the Credit cannot be transferred at the request of the Second Beneficiary to any subsequent Third Beneficiary. For the purpose of this Article, a retransfer to the First Beneficiary does not constitute a prohibited transfer
Fractions of a transferable Credit (not exceeding in the aggregate the amount of the Credit) can be transferred separately, provided partial shipments/drawings are not prohibited, and the aggregate of such transfer will be considered as constituting only one transfer of the Credit.
The Credit can be transferred only on the terms and conditions specified in the original Credit, with the exception of :
The amount of the Credit,
any unit price stated therein
the expiry date,
the last date for presentation of documents in accordance with Article 43
the period of shipment,
any or all of which may be reduced or curtailed.

The percentage for which insurance cover must be effected may be increased in such a way as to provide the amount of cover stipulated in the original Credit, of these Articles.

In addition, the name of the First Beneficiary can be substituted for that of the Applicant, but if the name of the Applicant is specifically required by the original Credit to appear in any document(s) other than the invoice, such requirement must be fulfilled.


The First Beneficiary has the right to substitute his own invoice(s) (and Draft(s)) for those of the Second Beneficiary(ies), for amounts not in excess of the original amount stipulated in the Credit and for the original unit prices if stipulated in the Credit, and upon such substitution of invoice(s) (and Draft(s)) the First Beneficiary can draw under the Credit for the difference, if any, between his invoice(s) and the Second Beneficiary(ies) invoce(s).

When a Credit has been transferred and the First Beneficiary is to supply his own invoice(s) (and Draft(s)) in exchange for the Second Beneficiary(ies) invoice(s) (and Draft(s)) but fails to do so on first demand, the Transferring Bank has the right to deliver to the Issuing Bank the documents received under the transferred Credit, including the Second Beneficiary(ies) invoice(s) (and Draft(s)) without further responsibility to the First Beneficiary.

The First Beneficiary may request that payment or negotiation be effected to the Second Beneficiary(ies) at the place to which the Credit has been transferred up to and including the expiry date of the Credit, unless the original credit expressly states that it may not be made available for payment or negotiation at a place other than the stipulated in the Credit. This is without prejudice to the First Beneficiary's right to substitute subsequently his own invoice(s) (and Draft(s)) for those of the Second Beneficiary(ies) and to claim any difference due to him.

G. Assignment of Proceeds

Article 49
Assignment of Proceeds

The fact that a Credit is not stated to be transferable shall not affect the Beneficiary's right to assign any proceeds to which he may be, or may become, entitled under such Credit, in accordance with the provisions of the applicable law. This Article relates only to the assignment of proceeds and not the assignment of the right to perform under the Credit itself.