The UCP 600 will be in effect as of July 1, 2007

The International Chamber of Commerce’s (ICC) Uniform Customs and Practice (UCP) for Documentary Credits, a set of Rules that govern documentary credit activities (and in some cases, standby letters of credit and letters of guarantee), are being updated and will come into effect on July 1, 2007, the first revision since January 1, 1994.

The UCP 600 contains new provisions that companies conducting trading activities associated with documentary credits should be aware of. Highlights of the new changes include*:

• A leaner set of rules, with only 39 articles instead of 49 (as are included in the UCP 500).
• A new definitions section to help better understand the Rules, with a description of terms such as "honour" and "negotiations".
• A replacement of the term "reasonable time" with a definite number of days for examining and determining compliance of documents.
• An expanded description of what "original documents" include.
• Changed rules for giving notice of document refusals.
• Re-drafted and easier to understand transport articles.

If you have any questions or require further information on the upcoming UCP changes, please contact us.

* Note: This is not a complete summary of the Rules or of the changes being made. You should not rely on these references and extracts and you should consult the official UCP 600 and/or your professional advisor(s) for a complete version of the Rules and for any other matters regarding letters of credit.