The International Chamber of Commerce (ICC) has established rules on documentary credits worldwide for more than 70 years. UCP 600, the latest version of ICC’s universally used rules on documentary credits, came into effect on July 1, 2007.
Members of the Drafting Group that developed the new UCP have produced an article-by-article Commentary on the rules. Commentary on UCP 600, which reflects the Group’s personal views*, explains their rationale behind the changes in the rules and clarifies the general principles that underlie them.
It frankly addresses the contentious issues in the new rules, among them:
the term “on their face” and why it was dropped in all but one UCP article
the removal of the words “reasonable time”
the language allowing discounting of deferred payment credits
the new article on “Definitions”, containing terms such as “honour” and “negotiation”
On these and other key points, Commentary on UCP 600 provides an invaluable insight into the thinking of those who drafted the new UCP.
Practical, compact and easy-to read, Commentary on UCP 600 will be a reference book of choice for students and users of the new UCP.
*Note that Commentary on UCP 600 reflects the personal views of the UCP Drafting Group. It does not necessarily reflect the views of the full ICC Banking Commission.