Paramshree : Instant help on - Letter of Credit

1 Overview of instantLC++
2 Operational Features of Documentary Credit
- 2.1 Definition of Documentary Credit
- 2.2 How a Documentary Credit Operates
- 2.3 Application of UCP for Documentary Credit Transactions
- 2.4 Different Contracts in a Documentary Credit Transaction - Triangular Contractual Obligations
- 2.5 Issuance of Amendments
  - 2.5.1 When an Amendment can be Issued?
  - 2.5.2 When an Amendment becomes Effective?
  - 2.5.3 Partial Acceptance of an Amendment
  - 2.5.4 Advising Amendments by the Issuing Bank
- 2.6 Credit Available with whom / when / where
  - 2.6.1 Available with
    - 2.6.1.1 Available with any Bank
    - 2.6.1.2 Available with a Specified Nominated Bank
  - 2.6.2 Available by
    - 2.6.2.1 Negotiation
    - 2.6.2.2 Payment
    - 2.6.2.3 Deferred payment
    - 2.6.2.4 Acceptance
  - 2.6.3 Expiry Date for Presentation
  - 2.6.4 Place of Expiry
3 Parties in a Documentary Credit Transaction
- 3.1 Applicant
- 3.2 Issuing Bank
- 3.3 Advising Bank
- 3.4 Confirming Bank
- 3.5 Beneficiary
- 3.6 Nominated Bank
- 3.7 Reimbursing Bank
4 Types of Documentary Credits
- 4.1 Confirmed Credit
- 4.2 Transferable Credit
  - 4.2.1 Responsibilities of the Applicant
  - 4.2.2 Responsibilities of the Issuing Bank
  - 4.2.3 Responsibilities of the Beneficiary (First Beneficiary)
  - 4.2.4 Features of Transferable Credit
  - 4.2.5 Transferable credit and documents
- 4.3 Back to Back Credit
- 4.4 Revolving Credit
- 4.5 Deferred Credit
- 4.6 Standby Letter of Credit
- 4.7 Red Clause Credit
5 Documents under Documentary Credit
- 5.1 Draft / Bill of Exchange
  - 5.1.1 Introduction
  - 5.1.2 Date and Place of Issue
  - 5.1.3 Amount of Draft & Currency
  - 5.1.4 Draft drawn by and drawn on
  - 5.1.5 Tenor of the Draft
  - 5.1.6 Due Date falling on a Non Banking Day
  - 5.1.7 Endorsement
  - 5.1.8 Notation as per the Credit
  - 5.1.9 Signature
  - 5.1.10 Corrections and Alterations
  - 5.1.11 Check List for Draft
- 5.2 Invoice
  - 5.2.1 Title of the Document and Definition of Invoice
  - 5.2.2 Name of the Beneficiary
  - 5.2.3 Name of the Applicant
  - 5.2.4 Address of the Beneficiary and Applicant
  - 5.2.5 Currency and Value
  - 5.2.6 Commercial Invoice Issued for an Amount in Excess of the Amount Permitted in the Credit
  - 5.2.7 Signature
  - 5.2.8 Description of Goods, Services and Performances
  - 5.2.9 Quantity of Shipment
  - 5.2.10 Number of Originals and Copies
- 5.3 Transport Documents
  - 5.3.1 Bill of Lading
    - 5.3.1.1 Specimen
    - 5.3.1.2 Title of the Document
    - 5.3.1.3 Indicate the Name of the Carrier
    - 5.3.1.4 Signature in the Bill of Lading
    - 5.3.1.5 Indicate Goods have been Shipped on Board & the Name of the Vessel
    - 5.3.1.6 Indicate the Date of Shipment
    - 5.3.1.7 Indicate the Port of Loading and Port of Discharge
    - 5.3.1.8 Indicate Full Set of Originals Issued
    - 5.3.1.9 Contains Terms and Conditions of Carriage
    - 5.3.1.10 Charter Party Bill of Lading
    - 5.3.1.11 Transhipment Clause
    - 5.3.1.12 Indicate the Description of Merchandise
    - 5.3.1.13 Indicate the Consignee
    - 5.3.1.14 Indicate the Shipper
    - 5.3.1.15 Details of Notify Party
    - 5.3.1.16 Partial Shipment Clause
    - 5.3.1.17 Clean Bill of Lading
    - 5.3.1.18 Freight and Additional Charges
    - 5.3.1.19 Corrections and Alterations
    - 5.3.1.20 Goods Covered in more than One Bill of Lading
  - 5.3.2 Multimodal Transport Document
    - 5.3.2.1 Specimen
    - 5.3.2.2 Introduction
    - 5.3.2.3 Title of the Document
    - 5.3.2.4 Indicate the Name of the Carrier
    - 5.3.2.5 Signature in the Multimodal Transport Documents
    - 5.3.2.6 On Board Notation
    - 5.3.2.7 Indicate the Date of Dispatch/Shipment
    - 5.3.2.8 Indicate the Place of Dispatch or Place of Taking in Charge or Shipment, or the Place of Final Destination as stated in the Credit
    - 5.3.2.9 Indicate the Number of Originals Issued
    - 5.3.2.10 Contains Terms and Conditions of Carriage
    - 5.3.2.11 Charter Party Arrangement
    - 5.3.2.12 Transhipment Clause
    - 5.3.2.13 Indicate the Description of Goods
    - 5.3.2.14 Indicate the Consignee
    - 5.3.2.15 Indicate the Shipper
    - 5.3.2.16 Details of Notify Party
    - 5.3.2.17 Partial Shipment Clause
    - 5.3.2.18 Clean Transport Document
    - 5.3.2.19 Freight and Additional Charges
    - 5.3.2.20 Corrections and Alterations
    - 5.3.2.21 Goods Covered in more than One Multimodal Transport Document
  - 5.3.3 Non Negotiable Sea Way Bill
    - 5.3.3.1 Indicate the Name of the Carrier
    - 5.3.3.2 Signature in the Non Negotiable Sea Way Bill
    - 5.3.3.3 Indicate Goods have been Shipped on Board & the Name of the Vessel
    - 5.3.3.4 Indicate the Date of Shipment
    - 5.3.3.5 Indicate the Port of Loading and Port of Discharge
    - 5.3.3.6 Indicate Full Set of Originals Issued
    - 5.3.3.7 Contains Terms and Conditions of Carriage
    - 5.3.3.8 Charter Party
    - 5.3.3.9 Transhipment Clause
  - 5.3.4 Charter Party Bill of Lading
    - 5.3.4.1 Specimen
    - 5.3.4.2 Introduction
    - 5.3.4.3 Transport Document Indicating that it is Subject to a Charter Party
    - 5.3.4.4 Signature in the Charter Party Bill of Lading
    - 5.3.4.5 Indicate Goods are Shipped on Board
    - 5.3.4.6 Date of Shipment
    - 5.3.4.7 Indicate Port of Loading and Port of Discharge as Specified in the Credit
    - 5.3.4.8 Indicate Whether it is Issued as a Sole Original or in Sets
    - 5.3.4.9 Charter Party Contracts/Agreements
    - 5.3.4.10 Name of the Consignee
    - 5.3.4.11 Notify Party Details
    - 5.3.4.12 Partial Shipment
    - 5.3.4.13 Clean Charter Party Bill of Lading
    - 5.3.4.14 Description of Goods
    - 5.3.4.15 Corrections and Authentications in the Charter Party Bill of Lading
    - 5.3.4.16 Freight and Additional Costs
  - 5.3.5 Air Transport Document
    - 5.3.5.1 Specimen
    - 5.3.5.2 Introduction
    - 5.3.5.3 Indicate the Name of the Carrier
    - 5.3.5.4 Issuer and the Signatory
    - 5.3.5.5 House Airway Bills and Air Transport Document Issued by Freight Forwarder
    - 5.3.5.6 Indicate that Goods have been Accepted for Carriage
    - 5.3.5.7 Date of Shipment
    - 5.3.5.8 Airport of Departure and Destination
    - 5.3.5.9 Original for Consignor/Shipper
    - 5.3.5.10 Terms and Conditions of the Carriage
    - 5.3.5.11 Transhipment
    - 5.3.5.12 Name of the Consignee and the Order Party
    - 5.3.5.13 Notify Party Details
    - 5.3.5.14 Partial Shipment Clause
    - 5.3.5.15 Clean Air Transport Document
    - 5.3.5.16 Description of Goods
    - 5.3.5.17 Authentication of Corrections and Alterations
    - 5.3.5.18 Freight and Additional Costs
  - 5.3.6 Road, Rail or Inland Waterway Transport Document
    - 5.3.6.1 Indicate the Name of the Carrier
    - 5.3.6.2 Issued and Signed by
    - 5.3.6.3 Indicate the Receipt of Goods
    - 5.3.6.4 Indicate the Date of Shipment
    - 5.3.6.5 Indicate the Place of Shipment and Place of Destination
    - 5.3.6.6 Indicate Originals for Consignor or Shippers Name
    - 5.3.6.7 Number of Originals Issued or Sole Original
    - 5.3.6.8 Transhipment
    - 5.3.6.9 Indicate the Order Party and Notify Party
    - 5.3.6.10 Description of Goods
    - 5.3.6.11 Corrections and Alterations
    - 5.3.6.12 Freight and Additional Charges
  - 5.3.7 Courier Receipt, Post Receipt or Certificate of Posting
    - 5.3.7.1 Courier Receipt
    - 5.3.7.2 Post receipt or Certificate of Posting
  - 5.3.8 General Issues in Transport Documents
    - 5.3.8.1 Impact of Expressions like On Deck , Shippers Load and Count , said by Shipper to Contain
    - 5.3.8.2 Charges Additional to Freight
    - 5.3.8.3 Clean Transport Document
    - 5.3.8.4 Words such as to , until , till , from , before , after and between if used to Determine the Shipment Date
    - 5.3.8.5 Presentation Period
- 5.4 Insurance Document and Coverage
  - 5.4.1 Specimen
  - 5.4.2 Title of the Insurance Document and the Issuer
  - 5.4.3 Issue of more than One Original
  - 5.4.4 Acceptance of Cover Note
  - 5.4.5 Insurance Policy/Certificate
  - 5.4.6 Date of Insurance Cover
  - 5.4.7 Insurance Document with an Expiry Date
  - 5.4.8 Currency of the Insured Amount
  - 5.4.9 Amount of Insurance Coverage
  - 5.4.10 Coverage of Insurance
  - 5.4.11 Type of Risk Required
  - 5.4.12 Credit Calling for All Risks Policy
  - 5.4.13 Exclusion Clauses - Exclusion of Certain Risks
  - 5.4.14 Endorsement in Insurance Document
- 5.5 Certificate of Origin
  - 5.5.1 Specimen
  - 5.5.2 Requirement under Credit
  - 5.5.3 Issuer of this Document
  - 5.5.4 Contents of Certificate of Origin
- 5.6 General Issues in Documents
  - 5.6.1 Issuer to be Specified in the Credit
  - 5.6.2 Data in a Document
  - 5.6.3 Date in a Document
  - 5.6.4 Disclaimer on the Effectiveness of the Document
  - 5.6.5 Presentation Period
  - 5.6.6 Title of Documents
  - 5.6.7 Combined Documents
6 Check List for Exporters/Beneficiaries
- 6.1 At the Time of Receiving the Credit
- 6.2 At the Time of Receipt of Amendments
- 6.3 At the Time of Presentation of Documents
  - 6.3.1 Presentation of Documents under a Confirmed Credit or a Restricted Credit
  - 6.3.2 Check List for the Beneficiary for Presentation of Documents
  - 6.3.3 Check List for Preparation of Documents to Avoid Discrepancies
    - 6.3.3.1 Draft / Bill of Exchange
    - 6.3.3.2 Commercial Invoice
    - 6.3.3.3 Transport Document
    - 6.3.3.4 Insurance Document
- 6.4 If the Documents are Discrepant
7 Check List for Importers/Applicants
- 7.1 At the Time of Establishing the Documentary Credit
- 7.1.1 Significance of Underlying Contract
- 7.1.2 Significance of INCOTERMS in the LC Application.
- 7.1.3 Prescribing Appropriate Documents
- 7.2 Issuing Amendments
- 7.3 At the Time of Receipt of Documents
- 7.4 Issues to be Considered by the Applicant
8 Check List for Banks
- 8.1 Check List for Issuing Bank
- 8.2 Check List for Advising Bank
- 8.3 Check List for Confirming Bank
- 8.4 Check List for Nominated Bank
- 8.5 Check List for Reimbursing Bank
9 SWIFT Format and Documentary Credit Transactions
- 9.1 SWIFT- An Overview
- 9.2 SWIFT Format and Documentary Credit Transactions
  - 9.2.1 SWIFT Format (MT 700 Issue of a Documentary Credit)
  - 9.2.2 Field No.40A. Form of Documentary Credit
  - 9.2.3 Field No.23 - Reference to Pre-Advice
  - 9.2.4 Field No.31C. Date of Issue
  - 9.2.5 Field No.31D. Date and Place of Expiry
  - 9.2.6 Field No.40E. Applicable Rules
  - 9.2.7 Field No.50 - Applicant
  - 9.2.8 Field No.59 - Beneficiary
  - 9.2.9 Field No.32B. Currency Code and Amount
  - 9.2.10 Field No.39A. Percentage Credit Amount Tolerance
  - 9.2.11 Field No.39B. Maximum Credit Amount
  - 9.2.12 Field No.41A. Available With ... By
  - 9.2.12.1 Available with...
  - 9.2.12.2 Available by....
  - 9.2.13 Field No.42C. Drafts At...
  - 9.2.14 Field No.42A. Drawee
  - 9.2.15 Field No.42M. Mixed Payment Details
  - 9.2.16 Field No.42P. Deferred Payment Details
  - 9.2.17 Field No.43 P.Partial Shipments
  - 9.2.18 Field No.43T- Transhipment
  - 9.2.19 Field No.44A. Loading on Board/Dispatch/Taking in Charge at/from ...
  - 9.2.20 Field No.44B. For Transportation to..
  - 9.2.21 Field No.44C. Latest date of Shipment
  - 9.2.22 Field No.44D. Shipment Period
  - 9.2.23 Field No.45A. Description of Goods and/or Services
  - 9.2.24 Field No.46A. Documents Required
  - 9.2.25 Field No.47A. Additional Conditions
  - 9.2.26 Field No.71B. Charges
  - 9.2.27 Field No.48 - Period for Presentation
  - 9.2.28 Field No.49 - Confirmation Instructions
  - 9.2.29 Field No.78 - Instructions to the Paying /Accepting /Negotiating Bank
  - 9.2.30 Field No.57A. Advise Through Bank
  - 9.2.31 Field No.52A. Reimbursing Bank
  - 9.2.32 Field No.72 - Sender to Receiver Information
- 9.3 Amendments
  - 9.3.1 Format for Issuance of Amendments for Documentary Credits
  - 9.3.2 Conditions for Amendments
  - 9.3.3 Field No.20: Sender s Reference (for the transmitting bank)
  - 9.3.4 Field No.21: Receiver s Reference (for receiving bank)
  - 9.3.5 Field No.23: Issuing Bank s Reference
  - 9.3.6 Field No.52: Issuing Bank
  - 9.3.7 Field No.31C: Date of Issue
  - 9.3.8 Field No.30: Date of Amendment
  - 9.3.9 Field No.26E: Number of Amendment
  - 9.3.10 Field No.59: Beneficiary (before amendment)
  - 9.3.11 Field No.31E: New Date of Expiry
  - 9.3.12 Field No.32B: Increase of Documentary Credit Amount
  - 9.3.13 Field No.33B: Decrease of Documentary Credit Amount
  - 9.3.14 Field No.34B: New Credit Amount
  - 9.3.15 Field No.39A: Percentage Credit Amount Tolerance (PCT)
  - 9.3.16 Field No.39B: Maximum Credit Amount
  - 9.3.17 Field No.39C: Additional Amount Covered
  - 9.3.18 Field No.44A: On Board / Dispatch / Taking Charge if to be Amended
  - 9.3.19 Field No.44B: For Transportation to if to be Amended
  - 9.3.20 Field No.44C: Latest Date of Shipment if to be Amended
  - 9.3.21 Field No.44D: Shipment Period
  - 9.3.22 Field No.79: Narrative
  - 9.3.23 Field No.72: Sender to Receiver Information
10 INCOTERMS 2010
- 10.1 Overview of INCOTERMS 2010
- 10.2 Classification of INCOTERMS 2010
- 10.3 Structure of INCOTERMS 2010
- 10.4 Brief Explanation on each Term of INCOTERMS 2010
  - 10.4.1 EXW: EX WORKS ( ... named place)
  - 10.4.2 FCA: FREE CARRIER ( ... named place)
  - 10.4.3 CPT: CARRIAGE PAID TO ( ... named place of destination)
  - 10.4.4 CIP: CARRIAGE AND INSURANCE PAID TO ( ...named place of destination)
  - 10.4.5 DAT: DELIVERED AT TERMINAL (named terminal at port or place of destination)
  - 10.4.6 DAP: DELIVERED AT PLACE (named place of destination)
  - 10.4.7 DDP: DELIVERED DUTY PAID ( named place of destination)
  - 10.4.8 FAS: FREE ALONGSIDE SHIP (named port of shipment )
  - 10.4.9 FOB: FREE ON BOARD ( ... named port of shipment)
  - 10.4.10 CFR: COST AND FREIGHT ( ... named port of destination)
  - 10.4.11 CIF: COST INSURANCE AND FREIGHT ( ... named port of destination)
  - 10.4.12 DAF: DELIVERD AT FRONTIER ( ... named place)
  - 10.4.13 DES: DELIVERED EX SHIP
  - 10.4.14 DEQ: DELIVERED EX QUAY ( ... named port of destination)
  - 10.4.15 DDU: DELIVERED DUTY UNPAID
11 DOCDEX
- 11.1 Dispute Resolution Rules under LCs (DOCDEX ICC 577)
- 11.2 DOCDEX Rules
  - 11.2.1 Article 1: Dispute Resolution Service
  - 11.2.2 Article 2: Request
  - 11.2.3 Article 3: Answer
  - 11.2.4 Article 4: Supplements
  - 11.2.5 Article 5: Acknowledgements and Rejections
  - 11.2.6 Article 6: Appointment of Experts
  - 11.2.7 Article 7: Appointed Experts Procedure
  - 11.2.8 Article 8: DOCDEX Decision
  - 11.2.9 Article 9: Deposit and Publication for the DOCDEX Decision
  - 11.2.10 Article 10: Costs of DOCDEX
  - 11.2.11 Article 11: General
12 Background and Difference between UCP 500 and UCP 600
- 12.1 Necessity for Revision
- 12.2 Issues Considered at the Time of Revision
- 12.3 Overview of UCPDC ICC 600
- 12.4 UCP 600 in Comparison with UCP 500
  - 12.4.1 General Issues (Article 1 to 6)
  - 12.4.2 Responsibilities of Issuing Bank / Confirming Bank / Advising Bank / Nominated Bank (Article 7 to 9 and Article 12)
  - 12.4.3 Transmission of Credits and Amendments (Articles 10 and 11)
  - 12.4.4 Reimbursement Arrangements (Article 13)
  - 12.4.5 Documents - Examination / Discrepant documents / Commercial documents (Article 14 to 28)
    - 12.4.5.1 Standard Examination of Documents (Article 14)
    - 12.4.5.2 Complying Presentation (Article 15)
    - 12.4.5.3 Discrepant Documents - waiver and notice (Article 16)
    - 12.4.5.4 Original Documents (Article 17)
    - 12.4.5.5 Commercial Invoice (Article 18)
    - 12.4.5.6 Transport Documents (Article 19 to 27)
    - 12.4.5.7 Insurance Document (Article 28)
  - 12.4.6 Miscellaneous Issues (Article 29 to 32, Articles 38 and 39)
  - 12.4.7 Disclaimer (Article 34 to 37)
13 International Standard Banking Practice (ISBP 681)
- 13.1 Necessity for ISBP
- 13.2 Definition of Documentary Credit and "Complying Presentation" of documents
- 13.3 Contents of ISBP 681
  - 13.3.1 Preliminary considerations
    - 13.3.1.1 Application and Issuance of credit
      - 13.3.1.1.1 Issues to be considered by both applicant and beneficiary at the time of establishing documentary credit to avoid unnecessary cost, delays and disputes in the examination of documents (ISBP 681 Para 1):
      - 13.3.1.1.2 Applicant and the ambiguity in the instructions to issue the credit
      - 13.3.1.1.3 Impact of exclusion of certain terms in the credit
      - 13.3.1.1.4 Impact of credit requiring presentation of documents, which are to be counter-singed or issued by the applicant
  - 13.3.2 General principles
    - 13.3.2.1 Abbreviations
      - 13.3.2.1.1 Usage of generally accepted abbreviations
      - 13.3.2.1.2 Usage of slash marks (/)
    - 13.3.2.2 Certifications and Declarations
    - 13.3.2.3 Corrections and Alterations
      - 13.3.2.3.1 Use of multiple style and font sizes
      - 13.3.2.3.2 Document containing more than one correction
      - 13.3.2.3.3 Corrections and alterations in documents created by the beneficiary itself
      - 13.3.2.3.4 Corrections and alterations in documents other than documents created by the beneficiary
    - 13.3.2.4 Dates
      - 13.3.2.4.1 Documents which must be dated even if the credit does not expressly so require
      - 13.3.2.4.2 Date of the document and evidencing of an event
      - 13.3.2.4.3 If the date of preparation of a document and date of signature differs
      - 13.3.2.4.4 Pharases frequently used to signify time on either side of a date or event
      - 13.3.2.4.5 Impact of using the term within
      - 13.3.2.4.6 Format of expression of date
    - 13.3.2.5 Documents for which UCP 600 transport articles do not apply
    - 13.3.2.6 Expressions not defined in UCP 600
      - 13.3.2.6.1 Shipping documents
      - 13.3.2.6.2 Stale documents acceptable
      - 13.3.2.6.3 Third party documents acceptable
      - 13.3.2.6.4 Exporting country
    - 13.3.2.7 Issuer of documents
    - 13.3.2.8 Language
    - 13.3.2.9 Mathematical Calculations
    - 13.3.2.10 Mis-spellings or typing errors
    - 13.3.2.11 Multiple pages and attachments or riders
    - 13.3.2.12 Originals and copies of Documents
      - 13.3.2.12.1 Documents marked original/ duplicate/ triplicate
      - 13.3.2.12.2 Number of originals to be presented
      - 13.3.2.12.3 If the credit terms are not clear - either to present original or copy of document
      - 13.3.2.12.4 Cases where original is not acceptable
      - 13.3.2.12.5 Signature in the copy document
      - 13.3.2.12.6 Reference material relating to original document for further reading
    - 13.3.2.13 Shipping marks
      - 13.3.2.13.1 Purpose of shipping marks
      - 13.3.2.13.2 Additional information in the shipping mark in some documents
      - 13.3.2.13.3 Shipping marks in transport documents covering containerised goods
    - 13.3.2.14 Signatures
      - 13.3.2.14.1 Documents which require signature
      - 13.3.2.14.2 Signature need not be handwritten
      - 13.3.2.14.3 Signature in the company s letter head paper - whether company s name should accompany the signature
    - 13.3.2.15 Title of documents and combined documents
  - 13.3.3 Issues relating to Documents
    - 13.3.3.1 Drafts and calculation of Maturity date
      - 13.3.3.1.1 Tenor
      - 13.3.3.1.2 Maturity date
      - 13.3.3.1.3 If the maturity/due date falls on a non banking day/ grace days
      - 13.3.3.1.4 Endorsement in the draft
      - 13.3.3.1.5 Amounts
      - 13.3.3.1.6 How the drafts to be drawn
      - 13.3.3.1.7 Drafts on the applicant
      - 13.3.3.1.8 Corrections and alterations
    - 13.3.3.2 Invoice
      - 13.3.3.2.1 Definition of Invoice
      - 13.3.3.2.2 Description of the goods, services or performance and other general issues related to invoices
    - 13.3.3.3 Transport document
      - 13.3.3.3.1 Multimodal transport document
      - 13.3.3.3.2 Bill of Lading,
      - 13.3.3.3.3 Charter Party Bill of lading
      - 13.3.3.3.4 Air transport document
      - 13.3.3.3.5 Road, Rail, Inland waterway transport document
    - 13.3.3.4 Insurance document and coverage
      - 13.3.3.4.1 Application of Art 28 of UCP 600
      - 13.3.3.4.2 Issuer of Insurance Documents
      - 13.3.3.4.3 Risks to be covered
      - 13.3.3.4.4 Dates
      - 13.3.3.4.5 Percentage and amount
      - 13.3.3.4.6 Insured Party and Endorsement
    - 13.3.3.5 Certificate of origin
      - 13.3.3.5.1 Basic Requirement
      - 13.3.3.5.2 Issuer of Certificates of Origin
      - 13.3.3.5.3 Contents of certificate of Origin
14 Uniform Rules For Bank To Bank Reimbursement - URR 725
- 14.1 Application of URR 725
- 14.2 Definitions for certain terms
  - 14.2.1 Issuing Bank
  - 14.2.2 Reimbursing Bank
  - 14.2.3 Claiming Bank
  - 14.2.4 Reimbursement Claim
  - 14.2.5 Reimbursement undertaking
  - 14.2.6 Reimbursement undertaking amendment
- 14.3 Reimbursement authorization v/s Documentary credit
- 14.4 Reimbursement authorization
  - 14.4.1 Issuance and receipt of Reimbursement authorization and amendments
    - 14.4.1.1 Issuance of reimbursement authorizations
    - 14.4.1.2 In case reimbursing bank is not prepared to accept the reimbursement authorisation
    - 14.4.1.3 If issuing bank and claiming bank not following the provisions
  - 14.4.2 Amendments or cancellation or expiry of Reimbursement authorisation
  - 14.4.3 Duplication of reimbursement authorisation
- 14.5 Reimbursement undertaking
  - 14.5.1 Irrevocable reimbursement authorisation from the issuing bank to the reimbursing bank for issuing reimbursement undertaking to the claiming bank
  - 14.5.2 If the reimbursing bank is not interested in issuing reimbursement undertaking to the claiming bank
  - 14.5.3 If there is a need for accepting and a pay a time draft (bill of exchange payable on a due date)
  - 14.5.4 Contents of reimbursement undertaking
  - 14.5.5 Liability of the reimbursing bank
- 14.6 Reimbursement claims
- 14.7 Responsibilities of the banks
  - 14.7.1 Responsibilities of the issuing bank
  - 14.7.2 Responsibilities of the reimbursing bank
- 14.8 Processing of reimbursement claims
- 14.9 Miscelleneous provisions
  - 14.9.1 Foreign Laws and usages
  - 14.9.2 Disclaimer on the transmission of messages
  - 14.9.3 Force Majeure
  - 14.9.4 Charges
15 Uniform Rules for Collection - URC 522
- 15.1 General provisions and definitions
  - 15.1.1 Application of URC 522
  - 15.1.2 Bank's obligation
  - 15.1.3 Definitions
    - 15.1.3.1 Documents
      - 15.1.3.1.1 Financial documents
      - 15.1.3.1.2 Commercial documents
      - 15.1.3.1.3 Collection
  - 15.1.4 Parties to a collection transaction (Ref: Art3.a & b of URC 522)
- 15.2 Structure of collection instructions and the form
  - 15.2.1 General requirements
  - 15.2.2 Information that are required in collection instruction
    - 15.2.2.1 Details of the parties involved in the specific collection transaction
    - 15.2.2.2 Amount and the currency in which payment is to be collected
    - 15.2.2.3 Detailed list of documents enclosed with number of each document indicating number of originals and copies
    - 15.2.2.4 Terms and conditions against which payment to be received or acceptance to be obtained
    - 15.2.2.5 Terms of delivery of documents
    - 15.2.2.6 Charges to be collected
    - 15.2.2.7 Interest to be collected
    - 15.2.2.8 Method of payment and form of payment advice
    - 15.2.2.9 Action to be taken in case of non-acceptance or non-payment
- 15.3 Form of presentation and the documents
  - 15.3.1 Meaning of presentation
  - 15.3.2 Prescribing the specific period of time for taking any action by the drawee
  - 15.3.3 Presentation of documents to the drawee
  - 15.3.4 Remitting bank utilizing the services of collecting bank
  - 15.3.5 Responsibility of the presenting bank in presenting the documents without delay
  - 15.3.6 Releasing of commercial documents
  - 15.3.7 Creation of additional documents by the collecting bank
- 15.4 Liabilities and responsibilities of the parties
  - 15.4.1 Good faith and reasonable care
  - 15.4.2 Documents Vs Goods/ services/ performances
  - 15.4.3 Disclaimer for the acts of the instructed party
  - 15.4.4 Disclaimer on the documents received
  - 15.4.5 Disclaimer on the effectiveness of documents
  - 15.4.6 Disclaimer on delays, loss in transit or translation
  - 15.4.7 Force Majeure
- 15.5 Payments in collection transactions
  - 15.5.1 Payment without delay
  - 15.5.2 Currency of payment
    - 15.5.2.1 Payment in local currency
    - 15.5.2.2 Payment in foreign currency
  - 15.5.3 Partial payments
    - 15.5.3.1 Partial payments in clean collections
    - 15.5.3.2 Partial payments in documentary collections
- 15.6 Collection of interest, charges and expenses
  - 15.6.1 Interest payments in a collection transaction
  - 15.6.2 Charges and expenses in a collection transaction
- 15.7 Other Provisions
  - 15.7.1 Presenting Bank s responsibility in case of acceptance of bill of exchange
  - 15.7.2 Presenting Bank s responsibility for the genuineness of the signature in Promissory note and other documents
  - 15.7.3 Specific instruction regarding protest
  - 15.7.4 Powers of the 'party in case of need
  - 15.7.5 Advices
    - 15.7.5.1 Advising the fate of collection transactions by the collecting banks
    - 15.7.5.2 Method of Advice
16 eUCP
- 16.1 Overview of eUCP
- 16.2 Scope of eUCP
- 16.3 Applicability of eUCP
- 16.4 Definitions
- 16.5 Documents under eUCP
  - 16.5.1 Format
  - 16.5.2 Presentation
    - 16.5.2.1 Place of presentation
    - 16.5.2.2 Method of presentation
    - 16.5.2.3 Originals and copies
- 16.6 Issues under eUCP & remedies
  - 16.6.1 When the Bank system is unable to receive the message
  - 16.6.2 Corruption of electronic record
- 16.7 Examination standards
  - 16.7.1 General principles
  - 16.7.2 Issues with regard to date
    - 16.7.2.1 Date of issue of the document
    - 16.7.2.2 Date of transport document
- 16.8 Other provisions
  - 16.8.1 Commencement of time period for examination of documents
  - 16.8.2 Disposal of documents
17 International Commercial Contract
- 17.1 Introduction
- 17.2 Terms and Conditions
18 Technical Terms and explanation
19 Case Studies
- 19.1 Case Studies on General Issues
  - 19.1.1 Application of UCP Rules for a Documentary Credit Transaction
  - 19.1.2 Period of Presentation Specified in a Documentary Credit
  - 19.1.3 Definition of Banking Day
  - 19.1.4 Definition of Complying Presentation
  - 19.1.5 Definition of the Term Presenter
  - 19.1.6 Arriving at Maturity Date when the Terms from or after is Used
  - 19.1.7 Interpretation of First Half / Second Half of a Month
  - 19.1.8 Contracts Vs Documentary Credits
  - 19.1.9 Documents Vs Goods
  - 19.1.10 Documentary Credits Restricted to Nominated bank
  - 19.1.11 Expiry Date for Presentation of Documents
  - 19.1.12 When an Amendment will be Effective?
  - 19.1.13 Time Limit for Rejection of Documents
  - 19.1.14 Description of Goods in other Documents
  - 19.1.15 Not Specifying the Issuer of a Document in a Credit. (Unspecified Issuer)
  - 19.1.16 Impacts of Using Certain Terms like Immediately in a Documentary Credit
- 19.2 Case Studies on Documents
  - 19.2.1 Credit Available by Draft on Applicant
  - 19.2.2 Examination of Documents not called for in the Credit
  - 19.2.3 Documents Dated Prior to the Date of the Credit
  - 19.2.4 Address of the Applicant and Beneficiary not as per the Credit
  - 19.2.5 Consignor / Shippers Name is other than the Beneficiary s Name in other Documents
  - 19.2.6 Contents of a Document not Specified in the Credit
  - 19.2.7 Single Notice of Rejection of Documents Listing all Discrepancies
  - 19.2.8 Listing Individual Discrepancies
  - 19.2.9 Acceptance of Waiver notice from the Applicant before Receipt of Disposal Instruction from the Presenter
  - 19.2.10 Title of Commercial Invoice
  - 19.2.11 Interpretation of the Term Signature in a Document
  - 19.2.12 What Constitutes the Term Original Document ?
  - 19.2.13 Invoice Showing Additional Goods like Trade Samples
  - 19.2.14 Authentication of Corrections & Alterations in a Document
  - 19.2.15 Invoice showing Trade Discount, Advance Payment etc not stated in the Credit
  - 19.2.16 INCOTERMS Forming Part of Description of Goods in the Credit
  - 19.2.17 Ascertaining Date of Shipment in a Transport Document
  - 19.2.18 Consignee in Air Transport Document
  - 19.2.19 Additional Costs Shown in the Transport Document - other than Freight Charges
  - 19.2.20 Description of Goods in Transport Documents
  - 19.2.21 Credit Specifies that Transport Document Should indicate Free Detention Period at the Port of Destination
  - 19.2.22 Certificate of Origin
  - 19.2.23 Insurance Value Covered in an Insurance Document
  - 19.2.24 Combined Title of Documents
- 19.3 Case Study on Advising Bank and its Responsibilities
  - 19.3.1 Responsibility of First and Second Advising Banks
- 19.4 Case Study on Confirming bank and its Responsibilities
  - 19.4.1 Confirming Bank and the Right of Recourse
- 19.5 Case Studies on Nominated Bank and its Obligations
  - 19.5.1 Definition of Nominated Bank in a Freely Available Credit
  - 19.5.2 Liability of the Nominated Bank
- 19.6 Case Studies on Reimbursement Instructions
  - 19.6.1 Reimbursement Instructions and Application of URR 725 for a Credit
  - 19.6.2 Reimbursing Banks Charges
- 19.7 Case Study on Restricted Credits
  - 19.7.1 Beneficiary s Rights under Restricted Credits