By Gary Collyer
By the time you read this newsletter your first UCP 600 transactions will have been processed – hopefully without any problems specific to the wording in UCP 600. The question for many has been “where have the last 8 months gone since the rules were approved?” Last minute changes to LC application forms, systems and literature will continue right up until 30 June and, in some cases, even beyond. The coming months will be a testing time for many – with the implementation of new rules, managing customer expectations, handling transactions under UCP 500 and, for most, the impending vacation period.
Maintaining the theme of the previous three newsletters, we continue to focus on issues that have been raised by corporates and banks. For the majority of this newsletter the centre of attention will be article 14. Once again, you will no doubt recognise that most of the issues are not directly linked to the wording of UCP 600. The issues could equally relate to UCP 500 or general letter of credit practice.
Corporate issues
Sub-articles 14 (b) and (c)
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By Gary Collyer
Following on from the previous newsletter, this edition addresses further issues that have been raised by corporates and banks over the past 6-7 months. It needs to be recognised that in most cases, the questions that are being raised would have equal application under UCP 500 as they do under UCP 600.
Corporate issues
Article 10 – Amendments.
As an applicant, why can I not include a time limit for the rejection of an amendment? In most cases, the amendment is known to the beneficiary so why cannot I attach some form of limitation on the period for acceptance or rejection?
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By Gary Collyer
Following on from the previous newsletter, this edition addresses further issues that have been raised by corporates and banks over the past 6-7 months.
Corporate issues
The number of corporate issues raised include:
Article 2 – definition of Applicant
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By Gary Collyer
The writer has conducted numerous seminars since November 2006, ranging from the USA to China and all continents in between. Despite the range of countries and their differing attitudes towards documentary credits, a number of areas within the UCP 600 have led to quite consistent questions and discussion.
These questions and discussion points can be compiled under two distinct categories (1) corporate issues (2) bank issues.
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By Gary Collyer
As a result of the 94-0 vote by the countries represented at the ICC Banking Commission to adopt the final draft of the UCP 600, there has been considerable interest and demand around the world for events to explain the background, interpretation and application of these new rules.
Whilst some countries and organisations are scheduling and waiting until later in the first half of 2007 to commence with their teaching – based on the implementation date of July 1, 2007 – others have grasped the opportunity immediately following the approval.
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By Gary Collyer
As a result of the 94-0 vote by the countries represented at the ICC Banking Commission to adopt the final draft of the UCP 600, there has been considerable interest and demand around the world for events to explain the background, interpretation and application of these new rules.
Whilst some countries and organisations are scheduling and waiting until later in the first half of 2007 to commence with their teaching – based on the implementation date of July 1, 2007 – others have grasped the opportunity immediately following the approval.
Read more…
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