Uniform Customs and Practice for Documentary Credits; UCP 600
The Uniform Customs and Practice for Documentary Credits (UCP 600) establishes an international standard of letter of credit practice. This set of rules for the issuance and use of Letters of Credit for bankers went into effect July 1, 2007 in consultation with bankers, the International Chamber of Commerce and other interested parties from around the world. In other words, UCP 600 are the latest revision of the Uniform Customs and Practice that govern the operation of letters of credit. Historically, the UCP have been revised about every ten years to keep up with changing business and banking practices as well as changes in technology.
Although the UCP defines rights and obligations of the various parties in a letter of credit transaction, it is not law and any given letter of credit is subject to the UCP only to the extent indicated in the letter of credit itself. The latest revision of UCP is the sixth revision of the rules since they were first promulgated in 1933. The current version is the result of year of effort by the International Chamber of Commerce's Commission on Banking Techniques and Practices.
© 2008 by Michael C. Dennis. All Rights Reserved. Mr. Dennis is the author of "1001 Collection Tools and Tips"