一、Ice Uniform CustcMns and Practice for Documentary Credits UCP 600
FOREWORD
This revision of the Uniform Customs and Practice for Documentary Credits（commonly called“UCP”）is the sixth revision of the rules since they were first promulgated in 1933. It is the fruit of more than three years of work by the International Chamber of Commerce's（ICC）Commission on Banking Technique and Practice.
ICC, which was established in 1919，had as its primary objective facilitating the flow of international trade at a time when nationalism and protectionism posed serious threats to the world trading system. It was in that spirit that the UCP were first introduced to alleviate the confusion caused by individual countries, promoting their own national rules on letter of credit practice.The objective, since attained, was to create a set of contractual rules that would establish uniformity in that practice, so that practitioners would not have to cope with a plethora of often conflicting national regulations.The universal acceptance of the UCP by practitioners in countries with widely divergent economic and judicial systems is a testament to the rule'success.
It is important to recall that the UCP represent the work of a private international organization, not a governmental body. Since its inception, ICC has insisted on the central role of selfregulation in business practice.These rules, formulated entirely by experts inthe private sector, have validated that approach.The UCP remain the most successful set of private rules for trade ever developed.
A range of individuals and groups contributed to the current revision, which is entitled UCP 600. These include the UCP Drafting Group, which sifted through more than 5000 individual comments before arriving at this consensus text；the UCP Consulting Group, consisting of members from more than 25 countries which served as the advisory body reacting to and proposing changes to the various drafts；the more than 400 members of the ICC Commission on Banking Technique and Practice who made pertinent suggestions for changes in the text；and ICC national committees worldwide which took an active role in consolidating comments from their members.ICC also expresses its gratitude to practitioners in the transport and insurance industries, whose perceptive suggestions honed the fnal draft.
Guy Sebban
Secretary General
International Chamber of Commerce
INTRODUCTION
In May 2003，the International Chamber of Commerce authorized the ICC Commission on Banking Technique and Practice（Banking Commission）to begin a revision of the Uniform Customs and Practice for Documentary Credits, ICC Publication 500.
As with other revisions, the general objective was to address developments in the banking, transport and insurance industries. Additionally, there was a need to look at the language and style used in the UCP to remove wording that could lead to inconsistent application and interpretation.
When work on the revision started'a number of global surveys indicated that, because of discrepancies, approximately 70%of documents presented under letters of credit were being rejected on first presentation. This obviously had, and continues to have a negative effect on the letter of credit being seen as a means of payment and, if unchecked, could have serious implications for maintaining or increasing its market share as a recognized means of settlement in international trade.The introduction by banks of a discrepancy fee has highlighted the importance of this issue, especially when the underlying discrepancies have been found to be dubious or unsound.Whilst the number of cases involving litigation has not grown during the lifetime of UCP 500，the introduction of the ICC's Documentary Credit Dispute Resolution Expertise Rules（DOCDEX）in October 1997（subsequently revised in March 2002）has resulted in more than 60 cases being decided.
To address these and other concerns, the Banking Commission established a Drafting Group to revise UCP 500. It was also decided to create a second group, known as the Consulting Group, to review and advise on early drafts submitted by the Drafting Group.The Consulting Group, made up of over 40 individuals from 26 countries, consisted of banking and transport industry experts.Ably cochaired by John Turnbull, Deputy General Manager, Sumitomo Mitsui Banking Corporation Europe Ltd, London and Carlo Di Ninni, Adviser, Italian Bankers Association, Rome, the Consulting Group provided valuable input to the Drafting Group prior to release of draft texts to ICC national committees.
The Drafting Group began the review process by analyzing the content of the offcial Opinions issued by the Banking Commission under UCP 500. Some 500 Opinions were reviewed to assess whether the issues involved warranted a change in, an addition to or a deletion of any UCP article.In addition, consideration was given to the content of the four Position Papers issued by the Commission in September 1994，the two Decisions issued by the Commission（concerning the introduction of the euro and the determination of what constituted an original document under UCP 500 sub-article 20（b）and the decisions issued in DOCDEX cases.
During the revision process, notice was taken of the considerable work that had been completed in creating the International Standard Banking Practice for the Examination of Documents under Documentary Credits（ISBP），ICC Publication 645. This publication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit.It is the expectation of the Drafting Group and the Banking Commission that the application of the principles contained in the ISBP, including subsequent revisions thereof, will continue during the time UCP 600 is in force.At the time UCP 600 is implemented, there will be an updated version of the ISBP to bring its contents in line with the substance and style of the new rules.
The four Position Papers issued in September 1994 were issued subject to their application under UCP 500；therefore, they will not be applicable under UCP 600. The essence of the Decision covering the determination of an original document has been incorporated into the text of UCP 600.The outcome of the DOCDEX cases were invariably based on existing ICC Banking Commission Opinions and therefore contained no specifc issues that required addressing in these rules.
One of the structural changes to the UCP is the introduction of articles covering definitions（Article 2）and interpretations（Article 3）. In providing defnitions of roles played by banks and the meaning of specific terms and events, UCP 600 avoids the necessity of repetitive text to explain their interpretation and application.Similarly, the article covering interpretations aims to take the ambiguity out of vague or unclear language that appears in letters of credit and to provide a defnitive elucidation of other characteristics of the UCP or the credit.
During the course of the last three years, ICC national committees were canvassed on a range of issues to determine their preferences on alternative texts submitted by the Drafting Group. The results of this exercise and the considerable input from national committees on individual items in the text is reflected in the content of UCP 600.The Drafting Group considered, not only the current practice relative to the documentary credit, but also tried to envisage the future evolution of that practice.
This revision of the UCP represents the culmination of over three years of extensive analysis, review, debate and compromise amongst the various members of the Drafting Group, the members of the Banking Commission and the respective ICC national committees. Valuable comment has also been received from the ICC Commission on Transport and Logistics, the Commission on Commercial Law and Practice and the Committee on Insurance.
It is not appropriate for this publication to provide an explanation as to why an article has been worded in such a way or what is intended by its incorporation into the rules. For those interested in understanding the rationale and interpretation of the articles of UCP 600，this information will be found in the Commentary to the rules, ICC Publication 601，which represents the Drafting Group's views.
On behalf of the Drafting Group I would like to extend our deep appreciation to the members of the Consulting Group, ICC national committees and members of the Banking Commission for their professional comments and their constructive participation in this process.
Special thanks are due to the members of the Drafting Group and their institutions, who are listed below in alphabetical order.
Nicole Keller-Vice President, Service International Products, Dresdner Bank AG, Frankfurt, Germany；Representative to the ICC Commission on Banking Technique and Practice；
Laurence Kooy-Legal Adviser, BNP Paribas, Paris, France；Representative to the ICC Commission on Banking Technique and Practice；
Katja Lehr-Business Manager, Trade Services Standards, SWIFT, La Hulpe, Belgium, then Vice President, Membership Representation, International Financial Services Association, New Jersey, USA；Representative to the ICC Commission on Banking Technique and Practice；
Ole Malmqvist-Vice President, Danske Bank, Copenhagen, Denmark；Representative to the ICC Commission on Banking Technique and Practice；
Paul Miserez-Head of Trade Finance Standards, SWIFT, La Hulpe, Belgium；Rep-resentative, to the ICC Commission on Banking Technique and Practice；
Rene Mueller-Director, CreditSuisse, Zurich, Switzerl；Representative to the ICC Commission on Banking Technique and Practice；
Chee Seng Soh—Consultant, Association of Banks in Singapore, Singapore；Representative to the ICC Commission on Banking Technique and Practice；
Dan Taylor-President and CEO, International Financial Services Association, New Jersey USA；Vice Chairman, ICC Commission on Banking Technique and Practice；
Alexander Zelenov—Director, Vnesheconombank, Moscow, Russia；Vice Chairman, ICG Commission on Banking Technique and Practice；
Ron Katz-Policy Manager, ICC Commission on Banking Technique and Practice, In-ternational Chamber of Commerce, Paris, France.
The undersigned had the pleasure of chairing the Drafting Group.
It was through the generous giving of their knowledge, time and energy that this revision was accomplished so successfully. As Chair of the Drafting Group, I would like to extend to them and to their institutions my gratitude for their contribution, for a job well done and for their friendship.I would also like to extend my sincere thanks to the management of ABN AMRO Bank N.V.，for their understanding, patience and support during the course of this revision process.
Gary Collyer
Corporate Director，
ABN AMRO Bank N. V.，London, England and Technical Adviser to the ICC Commission on
Banking Technique and Practice
November 2006
Article 1 Application of UCP
The Uniform Customs and Practice for Documentary Credits，2007 Revision, ICC Publication No，600（“UCP”）are rules that apply to any documentary credit（“credit”）（including, to the extent to which they may be applicable, any standby letter of credit）when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modifed or excluded by the credit.
Article 2 Defnitions
For the purpose of these rules：
Advising bank means the bank that advises the credit at the request of the issuing bank.
Applicant means the party on whose request the credit is issued.
Banking day means a day on which a bank is regularly open at the place at which an act subject to these rules is to be performed.
Benefciary means the party in whose favour a credit is issued.
Complying presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice.
Confrmation means a defnite undertaking of the confrming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation.
Confrming bank means the bank that adds its confrmation to a credit upon the issuing bank's authorization or request.
Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a defnite undertaking of the issuing bank to honour a complying presentation.
Honour means：
a：to pay at sight if the credit is available by sight payment.
b：to incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment.
c：to accept a bill of exchange（“draft”）drawn by the benefciary and pay at maturity if the credit is available by acceptance.
Issuing bank means the bank that issues a credit at the request of an applicant or on its own behalf.
Negotiation means the purchase by the nominated bank of drafts（drawn on a bank other than the nominated bank）and/or documents under a complying presentation, by advancing or agreeing to advance funds to the benefciary on or before the banking day on which reimbursement is due to the nominated bank.
Nominated bank means the bank with which the credit is available or any bank in the case of a credit available with any bank.
Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered.
Presenter means a benefciary, bank or other party that makes a presentation.
Article 3 Interpretations
For the purpose of these rules：
Where applicable 9 words in the singular include the plural and in the plural include the singular.
A credit is irrevocable even if there is no indication to that effect.
A document may be signed by handwriting, facsimile signature, perforated signature, stamp, symbol or any other mechanical or electronic method of authentication.
A requirement for a document to be legalized, visaed, certifed or similar will be satisfed by any signature, mark, stamp or label on the document which appears to satisfy that requirement.
Branches of a bank in different countries are considered to be separate banks.
Terms such as“frst class”，“well known”，“qualifed”“independent”，“offcial”，“competent”or“local”used to describe the issuer of a document allow any issuer except the benefciary to issue that document.
Unless required to be used in a document, words such as“prompt”，“immediately”or“as soon as possible”will be disregarded.
The expression“on or about”or similar will be interpreted as a stipulation that an event is to occur during a period of fve calendar days before until fve calendar days after the specifed date, both start and end dates included.
The words“to”，“until”，“till”，“from”and“between”when used to determine a periodof shipment include the date or dates mentionedt and the words“before”and“after”exclude the date mentioned.
The words“from”and“after”when used to determine a maturity date exclude the date mentioned.
The terms“frst half”and“second half”of a month shall be construed respectively as the 1st to the 15th and the 16th to the last day of the month, all dates inclusive.
The terms“beginning”“middle”and“end”of a month shall be construed respectively as the 1st to the 10th, the 11th to the 20th and the 21st to the last day of the month, all dates inclusive.
Article 4 Credits v.Contracts
credit by its nature is a separate transaction from the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit.Consequently, the undertaking of a bank to honour, to negotiate or to fulfl any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the benefciary.A benefciary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.
An issuing bank should discourage any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contract, pro forma invoice and the like.
Article 5 Documents v.Goods, Services or Performance
Banks deal with documents and not with goods, services or performance to which the documents may relate.
Article 6 Availability 9 Expiry Date and Place for Presentation
A credit must state the bank with which it is available or whether it is available with any bank. A credit available with a nominated bank is also available with the issuing bank.
A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation.
A credit must not be issued available by a draft drawn on the applicant.
dA credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation.
The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank.A place for presentation other than that of the issuing bank is in addition to the place of, the issuing bank.
A confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confrmation to the credit.
A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the confirming bank. Reimbursement for the amount of a complying presentation under a credit available by acceptance or deferred payment is due at maturity, whether or not another nominated bank prepaid or purchased before maturity.A confrming bank's undertaking to reimburse another nominated bank is independent of the confrming bank's Undertaking to the benefciary.
If a bank is authorized or requested by the issuing bank to confrm a credit but is not prepared to do so, it must inform the issuing bank without delay and may advise the credit without confrmation.
Article 7 Advising of Credits and Amendments
A credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.
By advising the credit or amendment, the advising bank signifes that it has satisfed itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received.
An advising bank may utilize the services of another bank（“second advising bank”）to advise the credit and any amendment to the benefciary. By advising the credit or amendment, the second advising bank signifes that it has satisfed itself as to the apparent authenticity of the advice it has received and that the adviee accurately reflects the terms and conditions of the credit or amendment received.
A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto.
If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received.
If a bank is requested to advise a credit or amendment but cannot satisfy itself as to the apparent authenticity of the credit, the amendment or the advice, it must so inform, without delay, the bank from which the instructions appear to have been received. If the advising bank or second advising bank elects nonetheless to advise the credit or amendment, it must inform the benefciary or second advising bank that it has not been able to satisfy itself as to the apparent authenticity of the credit, the amendment or the advice.
Article 8 Amendments
Except as otherwise provided by article 38，a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confrming bank, if any, and the benefciary.
An issuing bank is irrevocably bound by an amendment as of the time it issues the amendment. A confrming bank may extend its confrmation to an amendment and will be irrevocably bound as of the time it advises the amendment.A confrming bank may, however, choose to advise an amendment without extending its confirmation and, if so, it must inform the issuing bank without delay and inform the benefciary in its advice.
The terms and conditions of the original credit（or a credit incorporating previously accepted amendments）will remain in force for the beneficiary until the beneficiary communicates its acceptance of the amendment to the bank that advised such amendment. The beneficiary should give notifcation of acceptance or rejection of an amendment.If the benefciary fails to give such notifcation, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notifcation of acceptance by the benefciary of such amendment.As of that moment the credit will be amended.
A bank that advises an amendment should inform the bank from which it received the amendment of any notifcation of acceptance or rejection.
Partial acceptance of an amendment is not allowed and will be deemed to be notification of rejection of the amendment.
A provision in an amendment to the effect that the amendment shall enter into force unless rejected by the benefciary within a certain time shall be disregarded.
Article 9 Teletransmitted and Preadvised Credits and Amendments
An authenticated teletransmission of a credit or amendment will be deemed to be the operative credit or amendment, and any subsequent mail confrmation shall be disregarded.
If a teletransmission states“full details to follow”（or words of similar effect）for states that the mail confrmation is to be the operative credit or amendment, then the teletransmission will not be deemed to be the operative credit or amendment. The issuing bank must then issue the operative credit or amendment without delay in terms not inconsistent with the teletransmission.
A preliminary advice of the issuance of a credit or amendment（“pre-advice”）shall only be sent if the issuing bank is prepared to issue the operative credit or amendment. An issuing bank that sends a pre-advice is irrevocably committed to issue the operative credit or amendment, without delay, in terms not inconsistent with the preadvice.
Article 10 Nomination
Unless a nominated bank is the confrming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the benefciary.
By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank.
Receipt or examination and forwarding of documents by a nominated bank that is not a confirming bank does not make that nominated bank liable to honour or negotiate, nor does it constitute honour or negotiation.
Article 11 Bank-to-Bank Reimbursement Arrangements
If a credit states that reimbursement is to be obtained by a nominated bank（“claiming bank”）claiming on another party（“reimbursing bank”）f the credit must state if the reimbursement is subject to the ICC rules for bank-to-bank reimbursements in effect on the date of issuance of the credit.
If a credit does not state that reimbursement is subject to the ICC rules for bank-to-bank reimbursements, the following apply.
An issuing bank must provide a reimbursing bank with a reimbursement authorization that conforms with the availability stated in the credit. The reimbursement authorization should not be subject to an expiry date.
A claiming bank shall not be required to supply a reimbursing bank with a certificate of compliance with the terms and conditions of the credit.
An issuing bank will be responsible for any loss of interest, together with any expenses incurred, if reimbursement is not provided on frst demand by a reimbursing bank in accordance with the terms and conditions of the credit.
A reimbursing bank's charges are for the account of the issuing bank.
However, if the charges are for the account of the beneficiary, it is the responsibility of an issuing bank to so indicate in the credit and in the reimbursement authorization. If a reimbursing bank's charges are for the account of the benefciary, they shall be deducted from the amount due to a claiming bank when reimbursement is made.If no reimbursement is made, the reimbursing bank's charges remain the obligation of the issuing bank.
An issuing bank is not relieved of any of its obligations to provide reimbursement if reimbursement is not made by a reimbursing bank on frst demand.
Article 12 Standard for Examination of Documents
A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation.
A nominated bank acting on its nomination, a confrming bank, if any, and the issuing bank shall each have a maximum of fve banking days following the day of presentation to determine if a presentation is complying. This period is not curtailed or otherwise affected by the occurrence on or after the date of presentation of any expiry date or last day for presentation.
A presentation including one or more original transport documents subject to articles 19，20，21，22，23，24 or 25 must be made by or on behalf of the benefciary not later than 21 calendar days after the date of shipment as described in these rules, but in any event not later than the expiry date of the credit.
Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.
In documents other than the commercial invoice5 the description of the goods, services or performance, if stated, may be in general terms not conflicting with their description in the credit.
If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfl the function of the required document and otherwise complies with subarticle 14（d）.
A document presented but not required by the credit will be disregarded and may be returned to the presenter.
If a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated and will disregard it.
A document may be dated prior to the issuance date of the credit, but must not bedated later than its date of presentation.
When the addresses of the benefciary and the applicant appear in any stipulated document, they need not be the same as those stated in the credit or in any other stipulated document, but must be within the same country as the respective addresses mentioned in the credit. Contact details（telefax, telephone, email and the like）stated as part of the benefciary's and the applicant's address will be disregarded.However, when the address and contact details of the applicant appear as part of the consignee or notify party details on a transport document subject to articles 19，20，21，22，23，24 or 25，they must be as stated in the credit.
The shipper or consignor of the goods indicated on any document need not be the benefciary of the credit.
A transport document may be issued by any party other than a carrier, owner, master or charterer provided that the transport document meets the requirements of articles 19，20，21，22，23 or 24 of these rules.
Article 13 Complying Presentation
When an issuing bank determines that a presentation is complying, it must honour.
When a confirming bank determines that a presentation is complying, it must honour or negotiate and forward the documents to the issuing bank.
When a nominated bank determines that a presentation is complying and honours or negotiates, it must forward the documents to the confrming bank or issuing bank.
Article 14 Discrepant Documents 9 Waiver and Notice
When a nominated bank acting on its nomination, a confrming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate.
When an issuing bank determines that a presentation does not comply, it may in its sole judgement approach the applicant for a waiver of the discrepancies. This does not, however, extend the period mentioned in subarticle 14（b）.
When a nominated bank acting on its nomination, a confrming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a single notice to that effect to the presenter.
The notice must state：that the bank is refusing to honour or negotiate；and each discrepancy in respect of which the bank refuses to honour or negotiate；and that the bank is holding the documents pending further instructions from the presenter；or that the issuing bank is holding the documents until it receives a waiver from the applicant and agrees to accept it, or receives further instructions from the presenter prior to agreeing to accept a waiver；or that the bank is returning the documents；or that the bank is acting in accordance with instructions previously received from the presenter.
The notice required in subarticle 16（c）must be given by telecommunication or, if that is not possible, by other expeditious means no later than the close of the ffth banking day following the day of presentation.
A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may, after providing notice required by subarticle 16（c）（iii）（a）or（b），return the documents to the presenter at any time.
If an issuing bank or a confrming bank fails to act in accordance with the provisions of this article, it shall be precluded from claiming that the documents do not constitute a complying presentation.
When an issuing bank refuses to honour or a confirming bank refuses to honour ornegotiate and has given notice to that effect in accordance with this article, it shall then be entitled to claim a refund, with interest, of any reimbursement made.
Article 15 Original Documents and Copies
At least one original of each document stipulated in the credit must be presented.
A bank shall treat as an original any document bearing an apparently original signature, mark, stamp, or label of the issuer of the document, unless the document itself indicates that it is not an original.
Unless a document indicates otherwise, a bank will also accept a document as original if it；appears to be written, typed, perforated or stamped by the document issuer's hand；or appears to be on the document issuer's original stationery；or states that it is original, unless the statement appears not to apply to the document presented.
If a credit requires presentation of copies of documents, presentation of either originals or copies is permitted.
If a credit requires presentation of multiple documents by using terms such as“in duplicate”，“in two fold”or“in two copies”，this will be satisfed by the presentation of at least one original and the remaining number in copies, except when the document itself indicates otherwise.
Article 16 Commercial Invoice
A commercial invoice；must appear to have been issued by the benefciary（except as provided i n a r t i c l e 38）；must be made out in the name of the applicant（except as provided in subarticle 38（g））；must be made out in the same currency as the credit；and iV）need not be signed.
A nominated bank acting on its nomination, a confrming bank, if any, or the issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount in excess of that permitted by the credit.
The description of the goods, services or performance in a commercial invoice must correspond with that appearing in the credit.
Article 17 Transport Document Covering at Least Two Different Modes of Transport
A transport document covering at least two different modes of transport（multimodal or combined transport document），however named, must appear to：indicate the name of the carrier and be signed by：the carrier or a named agent for or on behalf of the carrier, or the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identifed as that of the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master. indicate that the goods have been dispatched 9 taken in charge or shipped on board at the place stated in the credit, by：preprinted wording, or a stamp or notation indicating the date on which the goods have been dispatched9 taken in charge or shipped on board.
The date of issuance of the transport document will be deemed to be the date of dispatch, taking in charge or shipped on board, and the date of shipment. However, if the transport document indicates, by stamp or notation, a date of dispatch, taking in charge or shipped on board, this date will be deemed to be the date of shipment.indicate the place of dispatch, taking in charge or shipment and the place of fnal destination stated in the credit, even if：the transport document states, in addition, a different place of dispatch, taking in charge or shipment or place of fnal destination, or the transport document contains the indication“intended”or similar qualifcation in relation to the vessel, port of loading or port of discharge.be the sole original transport document or, if issued in more than one original, be the full set as indicated on the transport document.contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage（short form or blank back transport document）.Contents of terms and conditions of carriage will not be examined.contain no indication that it is subject to a charter party.
For the purpose of this article, transhipment means unloading from one means of conveyance and reloading to another means of conveyance（whether or not in different modes of transport）during the carriage from the place of dispatch9 taking in charge or shipment to the place of fnal destination stated in the credit.
A transport document may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same transport document.
A transport document indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment.
Article 18 Bill of Lading
A bill of lading, however named, must appear to：indicate the name of the carrier and be signed by：the carrier or a named agent for or on behalf of the carrier, or the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identifed as that of the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by：pre-printed wording, or an on board notation indicating the date on which the goods have been shipped on board.
The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill of lading contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be the date of shipment.
If the bill of lading contains the indication“intended vessel”or similar qualification in relation to the name of the vessel, an on board notation indicating the date of shipment and the name of the actual vessel is required. indicate shipment from the port of loading to the port of discharge stated in the credit.
If the bill of lading does not indicate the port of loading stated in the credit as the port of loading, or if it contains the indication“intended”or similar qualifcation in relation to the port of loading, an on board notation indicating the port of loading as stated in the credit, the date of shipment and the name of the vessel is required. This provision applies even when loading on board or shipment on a named vessel is indicated by preprinted wording on the bill of lading.
be the sole original bill of lading or, if issued in more than one original, be the full set as indicated on the bill of lading.
contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage（short form or blank back bill of lading）. Contents of terms and conditions of carriage will not be examined.
contain no indication that it is subject to a charter party.
For the purpose of this article, transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit.
A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading.
A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading.
Clauses in a bill of lading stating that the carrier reserves the right to tranship will be disregarded.
Article 19 Non-Negotiable Sea Waybill
A non-negotiable sea waybill, however named, must appear to：
indicate the name of the carrier and be signed by：
the carrier or a named agent for or on behalf of the carrier, or
the master or a named agent for or on behalf of the master.
Any signature by the carrier, master or agent must be identifed as that of the carrier, master or agent.
Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master.
indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by：
pre-printed wording, or an on board notation indicating the date on which the goods have been shipped on board.
The date of issuance of the nonnegotiable sea waybill will be deemed to be the date of shipment unless the nonnegotiable sea waybill contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be the date of shipment.
If the non-negotiable sea waybill contains the indication“intended vessel”or similar qualification in relation to the name of the vessel, an on board notation indicating the date of shipment and the name of the actual vessel is required.
indicate shipment from the port of loading to the port of discharge stated in the credit.
If the nonnegotiable sea waybill does not indicate the port of loading stated in the credit as the port of loading 9 or if it contains the indication“intended”or similar qualifcation in relation to the port of loading, an on board notation indicating the port of loading as stated in the credit, the date of shipment and the name of the vessel is required. This provision applies even when loading on board or shipment on a named vessel is indicated by preprinted wording on the nonnegotiable sea waybill.
be the sole original non-negotiable sea waybill or, if issued in more than one original, be the full set as indicated on the non-negotiable sea waybill.
contain terms and conditions of carriage or make reference to another source con-taining the terms and conditions of carriage（short form or blank back non-negotiable sea waybill）. Contents of terms and conditions of carriage will not be examined.
contain no indication that it is subject to a charter party.
For the purpose of this article, transhipment means unloading from one vessel and
reloading to another vessel during the carriage from the port of loading to the port of dis-
charge stated in the credit.
A non-negotiable sea waybill may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same non-negotiable sea waybill.
A non-negotiable sea waybill indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the non-negotiable sea waybill.
Clauses in a non-negotiable sea waybill stating that the carrier reserves the right to tranship will be disregarded.
Article 20 Charter Party Bill of Lading
A bill of lading, however named, containing an indication that it is subject to a charter party（charter party bill of lading），must appear to
be signed by；
the master or a named agent for or on behalf of the master, or
the owner or a named agent for or on behalf of the owner, or
the chatterer or a named agent for or on behalf of the charterer.
Any signature by the master, owner, charterer or agent must be identifed as that of the master, owner, charterer or agent.
Any signature by an agent must indicate whether the agent has signed for or on behalf of the master, owner or charterer.
An agent signing for or on behalf of the owner or charterer must indicate the name of the owner or charterer.
indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by：
pre-printed wording or an on board notation indicating the date on which the goods have been shipped on board.
The date of issuance of the charter party bill of lading will be deemed to be the date of shipment unless the charter party bill of lading contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be. the date of shipment.
indicate shipment from the port of loading to the port of discharge stated in thecredit. The port of discharge may also be shown as a range of ports or a geographical area, as stated in the credit.
be the sole original charter party bill of lading or, if issued in more than one original, be the full set as indicated on the charter party bill of lading.
A bank will not examine charter party contracts, even if they are required to be presented by the terms of the credit.
Article 21 Air Transport Document
An air transport document, however named, must appear to：
indicate the name of the carrier and be signed by：
the carrier, or
a named agent for or on behalf of the carrier.
Any signature by the carrier or agent must be identified as that of the carrier or agent. Any signature by an agent must indicate that the agent has signed for or on behalf of the carrier.
indicate that the goods have been accepted for carriage.
indicate the date of issuance. This date will be deemed to be the date of shipment unless the air transport document contains a specifc notation of the actual date of shipment, in which case the date stated in the notation will be deemed to be the date of shipment.
Any other information appearing on the air transport document relative to the flight number and date will not be considered in determining the date of shipment.
indicate the airport of departure and the airport of destination stated in the credit.
be the original for consignor or shipper, even if the credit stipulates a full set of originals.
contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage. Contents of terms and conditions of carriage will not be examined.
For the purpose of this article, transhipment means unloading from one aircraft and reloading to another aircraft during the carriage from the airport of departure to the airport of destination stated in the credit.
An air transport document may indicate that the goods will or may be transhipped, provided that the entire carriage is covered by one and the same air transport document.
An air transport document indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment.
Article 22 Road, Rail or Inland Waterway Transport Documents
A road, rail or inland waterway transport document, however named, must appear
indicate the name of the carrier and：
be signed by the carrier or a named agent for or on behalf of the carrier, or
indicate, receipt of the goods by signature, stamp or notation by the carrier or a named agent for or on behalf of the carrier.
Any signature, stamp or notation of receipt of the goods by the carrier or agent must be identifed as that of the carrier or agent.
Any signature, stamp or notation of receipt of the goods by the agent must indicate that the agent has signed or acted for or on behalf of the carrier.
If a rail transport document does not identify the carrier, any signature or stamp of the railway company will be accepted as evidence of the document being signed by the carrier.
indicate the date of shipment or the date the goods have been received for shipment, dispatch or carriage at the place stated in the credit. Unless the transport document contains a dated reception stamp, an indication of the date of receipt or a date of shipment, the date of issuance of the transport document will be deemed to be the date of shipment.
indicate the place of shipment and the place of destination stated in the credit.
A road transport document must appear to be the original for consignor or shipper or bear no marking indicating for whom the document has been prepared.
A rail transport document marked“duplicate”will be accepted as an original，
A rail or inland waterway transport document will be accepted as an original whether marked as an original or not.
In the absence of an indication on the transport document as to the number of originals issued, the number presented will be deemed to constitute a full set.
For the purpose of this article, transhipment means unloading from one means of conveyance and reloading to another means of conveyance, within the same mode of transport, during the carriage from the place of shipment, dispatch or carriage to the place of destination stated in the credit.
A road, rail or inland waterway transport document may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same transport document.
A road, rail or inland waterway transport document indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment.
Article 23 Courier Receipt, Post Receipt or Certifcate of Posting
A courier receipt, however named, evidencing receipt of goods for transport, must appear to：
indicate the name of the courier service and be stamped or signed by the named courier service at the place from which the credit states the goods are to be shipped；and than the date of shipment.
The insurance document must indicate the amount of insurance coverage and be in the same currency as the credit.
A requirement in the credit for insurance coverage to be for a percentage of the value of the goods, of the invoice value or similar is deemed to be the minimum amount of coverage required.
If there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least 110%of the CIF or CIP value of the goods.
When the CIF or CIP value cannot be determined from the documents, the amount of insurance coverage must be calculated on the basis of the amount for which honour or negotiation is requested or the gross value of the goods as shown on the invoice, whichever is greater.
The insurance document must indicate that risks are covered at least between the place of taking in charge or shipment and the place of discharge or fnal destination as stated in the credit.
A credit should state the type of insurance required and, if any, the additional risks to be covered. An insurance document will be accepted without regard to any risks that are not covered if the credit uses imprecise terms such as“usual risks”or“customary risks”.
When a credit requires insurance against“all risks”and an insurance document is presented containing any“all risks”notation or clause, whether or not bearing the heading“all risks”，the insurance document will be accepted without regard to any risks stated to be excluded.
An insurance document may contain reference to any exclusion clause.
An insurance document may indicate that the cover is subject to a franchise or excess（deductible）.
Article 24 Extension of Expiry Date or Last Day for Presentation
If the expiry date of a credit or the last day for presentation falls on a day when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36，the expiry date or the last day for presentation, as the case may be, will be extended to the frst following banking day.
If presentation is made on the frst following banking day, a nominated bank must provide the issuing bank or confrming bank with a statement on its covering schedule that the presentation was made within the time limits extended in accordance with subarticle 29（a）.
The latest date for shipment will not be extended as a result of subarticle 29（a）.
Article 25 Tolerance in Credit Amount, Quantity and Unit Prices
The words“about”or“approximately”used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10%more or 10%less than the amount, the quantity or the unit price to which they refer.
A tolerance not to exceed 5%more or 5%less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit.
Even when partial shipments are not allowed, a tolerance not to exceed 5%less than the amount of the credit is allowed, provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not reduced or that subarticle 30（b）is not applicable. This tolerance does not apply when the credit stipulates a specifc tolerance or uses the expressions referred to in subarticle 30（a）.
Article 26 Partial Drawings or Shipments
Partial drawings or shipments are allowed.
A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.
A presentation consisting of more than one courier receipt, post receipt or certifcate of posting will not be regarded as a partial shipment if the courier receipts, post receipts or certificates of posting appear to have been stamped or signed by the same courier or postal service at the same place and date and for the same destination.
Article 27 Instalment Drawings or Shipments
If a drawing or shipment by instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available for that and any subsequent instalment.
Article 28 Hours of Presentation
A bank has no obligation to accept a presentation outside of its banking hours.
Article 29 Disclaimer on Effectiveness of Documents
A bank assumes no liability or responsibility for the form, suffciency, accuracy, genuineness， falsifcation or legal effect of any document, or for the general or particular conditions stipulated in a document or superimposed thereon；nor does it assume any liability or responsibility forthedesc ription, quantity, weight, quality, condition, packing, delivery, value or existence of the goods fservices or other performance represented by any document, or for the good faith or acts or omissions, solvency, performance or standing of the consignor, the carrier, the forwarder, the consignee or the insurer of the goods or any other person.
Article 30 Disclaimer on Transmission and Translation
A bank assumes no liability or responsibility for the consequences arising out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages or delivery of letters or documents, when such messages letters or documents are transmitted or sent according to the requirements stated in the credit, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in the credit.
If a nominated bank determines that a presentation is complying and forwards the documents to the issuing bank or confrming bank, whether or not the nominated bank has honoured or negotiated, an issuing bank or confrming bank must honour or negotiatet or reimburse that nominated bank, even when the documents have been lost in transit between the nominated bank and the issuing bank or confrming bank, or between the confrming bank and the issuing bank.
A bank assumes no liability or responsibility for errors in translation or interpretation of technical terms and may transmit credit terms without translating them.
Article 31 Force Majeure
A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots civil commotions insurrections, wars, acts of terrorism or by any strikes or lockouts or any other causes beyond its control.
A bank will not, upon resumption of its business, honour or negotiate under a credit that expired during such interruption of its business.
Article 32 Disclaimer for Acts of an Instructed Party
A bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant.
An issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out, even if it has taken the initiative in the choice of that other bank.
A bank instructing another bank to perform services is liable for any commissions, fees, costs or expenses（“charges”）incurred by that bank in connection with its instructions.
If a credit states that charges are for the account of the beneficiary and charges cannot be collected or deducted from proceeds, the issuing bank remains liable for payment of charges.
A credit or amendment should not stipulate that the advising to a benefciary is conditional upon the receipt by the advising bank or second advising bank of its charges.
The applicant shall be bound by and liable to indemnify a bank against all obligations and responsibilities imposed by foreign laws and usages.
Article 33 Transferable Credits
A bank is under no obligation to transfer a credit except to the extent and in the manner expressly consented to by that bank.
For the purpose of this article：
Transferable credit means a credit that specifcally states it is“transferable”. A transferable credit may be made available in whole or in part to another benefciary（“second benefciary”）at the request of the benefciary（“frst benefciary”）.
Transferring bank means a nominated bank that transfers the credit or, in a credit available with any bank, a bank that is specifcally authorized by the issuing bank to transfer and that transfers the credit. An issuing bank may be a transferring bank.
Transferred credit means a credit that has been made available by the transferring bank to a second benefciary.
Unless otherwise agreed at the time of transfer, all charges（such as commissions, fees, costs or expenses）incurred in respect of a transfer must be paid by the frst benefciary.
A credit may be transferred in part to more than one second beneficiary provided partial drawings or shipments are allowed.
A transferred credit cannot be transferred at the request of a second beneficiary to any subsequent benefciary. The frst benefciary is not considered to be a subsequent benefciary.
Any request for transfer must indicate if and under what conditions amendments may be advised to the second benefciary. The transferred credit must clearly indicate those conditions.
If a credit is transferred to more than one second benefciary, rejection of an amendment by one or more second benefciary does not invalidate the acceptance by any other second benefciary, with respect to which the transferred credit will be amended accordingly. For any second benefciary that rejected the amendment, the transferred credit will remain unamended.
The transferred credit must accurately reflect the terms and conditions of the credit, including confrmation, if any, with the exception of：
—the amount of the credit，
—any unit price stated therein，
—the expiry date，-the period for presentation, or
—the latest shipment date or given period for shipment，
any or all of which may be reduced or curtailed.
The percentage for which insurance cover must be effected may be increased to provide the amount of cover stipulated in the credit or these articles.
The name of the frst benefciary may be substituted for that of the applicant in the credit.
If the name of the applicant is specifically required by the credit to appear in any document other than the invoice, such requirement must be reflected in the transferred credit.
The frst benefciary has the right to substitute its own invoice and draft, if any, for those of a second beneficiary for an amount not in excess of that stipulated in the credit, and upon such substitution the first beneficiary can draw under the credit for the difference, if any, between its invoice and the invoice of a second benefciary.
If the frst benefciary is to present its own invoice and draft, if any, but fails to do so on frst demand, or if the invoices presented by the frst benefciary create discrepancies that did not exist in the presentation made by the second benefciary and the frst benefciary fails to correct them on frst demand, the transferring bank has the right to present the documents as received from the second benefciary to the issuing bank, without further responsibility to the frst benefciary.
The first beneficiary may, in its request for transfer, indicate that honour or negotiation is to be effected to a second benefciary at the place to which the credit has been transferred, up to and including the expiry date of the credit. This is without prejudice to the right of the frst benefciary in accordance with subarticle 38（h）.
Presentation of documents by or on behalf of a second beneficiary must be made to the transferring bank.
Article 34 Assignment of Proceeds
The fact that a credit is not stated to be transferable shall not affect the right of the benefciary to assign any proceeds to which it may be or may become entitled under the credit, in accordance with the provisions of applicable law. This article relates only to the assignment of proceeds and not to the assignment of the right to perform under the credit.
二、Payment Methods
In a domestic sales transaction, the seller may be used to selling on open account, extending credit, or aking for cash on delivery. In international agreements, it is more customary to utilize certain methods of payment which are designed to give the seller a greater level of protection.The idea is that if the buyer fails to pay, it is much more diffcult for a seller to go to a foreign country, institute a lawsuit, attempt to attach the buyer's assets, or otherwise obtain payment.When sellers are dealing with buyers who are essentially un-known to them, with whom they have no prior payment experience, or who are small or located in countries where there is signifcant political upheaval or changing economic circumstances, the seller may insist that the buyer pay by cash in advance.This is particularly important if the sale is of specially manufactured goods.Where a seller wants to give the buyer some credit but also to have security of payment the seller often requires the buyer to obtain a documentary letter of credit from a bank in the buyer's country.The seller may also require that the letter of credit be confrmed by a bank in the seller's country which guarantees payment by the buyer's bank.The seller may still sell on terms with payment to be made at the time of shipment or the seller may give the buyer some period of time（for example, from 30 days to 180 days）to make payment, but the letter of credit acts as an umbrella obligation of the bank guaranteeing the buyer's payment.In some cases, however, the buyer will be unable to obtain a letter of credit, for example, because the buyer's bank will not feel comfortable with the buyer's financial solvency.Furthermore, issuance of letters of credit involves the payment of bank fees which are normally paid for by the buyer, and the buyer usually does not wish to incur such expenses in addition to the cost of purchasing the goods.In such cases, particularly if the seller is anxious to make the sale or if other competitors are willing to offer more liberal payment terms, the seller may be forced to give up a letter of credit and agree to make the sale on some other, less secure, method of payment.
The next best method of payment is by sight draft documentary collection, commonly known as documents against payment or D/P transactions. In this case, the exporter uses the services of a bank to effect collection, but neither the buyer's bank nor a U.S.bank guarantees payment by the buyer.The seller will ship the goods, and the bill of lading and a draft（that is, a document like a check in the amount of the sale drawn on the buyer-rather than a bank-and payable to the seller）will be forwarded to the seller's bank.The seller's bank will forward such documents to a correspondent bank in the foreign country（sometimes the seller or its freight forwarder sends the documents directly to the foreign bank—this is known as direct collection），and the foreign bank will collect payment from the buyer prior to the time that the goods arrive.If payment is not made by the buyer, the correspondent bank does not release the bill of lading to the buyer, and the buyer will beunable to take possession of the goods or clear customs.Although it can still be a signifcant problem for the seller if the buyer does not make payment and the shipment has already gone, the seller should still be able to control the goods upon arrival9 for example, by asking the bank to place them in a warehouse or by requesting that they be shipped to a third country or back to the United States at the seller's expense.Direct collections are often used for air shipments to avoid delays through the seller's bank and, also, because air waybills are non-negotiable.
The next least secure payment method is to utilize a time draft, commonly known as documents against acceptance or D/A transactions. Like the sight draft transaction, the.bill of lading and time draft are forwarded through banking channels, but the buyer agrees to make payment within a certain number of days（for example，30 to 180）after he receives and accepts the draft.Normally, this permits the buyer to obtain possession of the goods and may give the buyer enough time to resell them before his obligation to pay comes due.However, documents against acceptance transactions are a significantly greater risk for the seller, because, if the buyer does not pay at the promised time, the seller's only recourse is to fle a lawsuit, the goods have already been released to the buyer.Where the buyer is fnancially strong, sometimes such acceptances can be discounted by the seller, however, permitting the seller to get immediate payment but giving the buyer additional time to pay.This discounting may be done with recourse or without recourse depending upon the size of the discount the seller is willing to accept.There may also be an interest charge to the buyer for the delay in payment, which the seller may decide to waive in order to make the sale.The buyer's bank may also agree to add its“aval”This then becomes a bank guaranty of payment equivalent to a letter of credit.
The least secure payment method is sale on open account, where the seller makes the sale and the shipment by forwarding the bill of lading and a commercial invoice directly to the buyer for payment. Because the bill of lading is sent directly to the buyer, once it leaves the possession of the seller, the seller will be unable to control what happens to the goods and the buyer will be able to obtain the goods whether or not payment is made.When a seller agrees to sell on open account, it must look to an alternative method, for example, a security interest under foreign law to protect its right to payment in case the buyer fails to pay at the agreed time.For this method of payment and for documents against acceptance, the seller should defnitely consider obtaining commercial risk insurance through the Foreign Credit Insurance Association.
Another type of letter of credit transaction which adds security is the standby letter of credit. If a buyer opens a standby letter of credit in favor of the seller, invoices, bills of lading, and similar documentation are forwarded directly to the buyer without using a bank for collection, but the issuing bank's guaranty is there in case of default by the buyer.
Sometimes a seller will begin selling to a particular customer under letters of credit, and as the seller becomes more familiar with the customer（the customer honors its obligations, increases its purchases, or enters inot an ongoing sales agreement），the seller will be willing to liberalize its payment terms.
LC Letter of Credit, or Credit. All documentary credits should be handled according to the International Chamber of Commerce practice known as the“Uniform Customs and Practice for Documentary Credits”.The current code is defined in the 1993 revision, ICC Publication No.500 and commonly referred to as UCP500.A supplement was issued in 2002 which embraces the evolution from paper to electronic Documentary Credit.It is termed a UCP—electronic presentation—a supplement to UCP500.Overall, it accommodates trade which is either completely electronic or where a mixture of electronic and paper documen tation is used.
In 2005 the ICC were formulating a new set of rules governing documentary credits to ease the movement of goods across borders while reflecting the need to tighten security without impeding trade. It will be known as the Uniform Customs and Practice for Documentary Credits UCP600 and displace UCP500 and may be introduced by 2007.
It provides security of payment to the exporter, and enables the buyer to ensure that he or she receives the goods as ordered and delivered in the way he or she requires. It is an arrangement whereby the buyer instructs his or her bank to establish a credit in favour of the seller.The buyer's bank（issuing bank），undertakes, or authorizes its correspondent bank in the exporter's country, to pay the exporter a sum of money（normally the invoice price of the goods）against presentation of shipping documents which are specified in the credit.It is a mandatory contract and completely independent of the sales contract.It is concerned only with documents and not the goods to which the documents refer.Liability for payment now rests with the issuing bank and not the buyer.
The usual form of these credits is the“irrevocable”credit, which means that it cannot be cancelled or amended without the agreement of the benefciary（the exporter）and all other parties. Such a credit, opened by a reputable bank in a sound country, means that the exporter can rely on payment being made as soon as he or she has shipped the goods and produced the documents called for in accordance with the terms of the credit.The se-curity provided by an irrevocable credit may be further enhanced if the bank in the exporter's country（advising bank）is requested by the issuing bank to add its“confrmation”.The exporter then has a“confrmed irrevocable credit”and he or she need look no further than his or her own local bank for payment.With a credit which is not“confirmed”，however, the point of payment is the issuing bank（abroad），although the advising bank would usually be prepared to negotiate with recourse.
The credit will set out in detail a description of the goods：price per unit and packing；name and address of the benefciary；the voyage, that is, port of shipment and port of destination；whether the price is FOB, CFR or CIF；and whether part shipments and transhipment are allowed. In some cases, the ship will be nominated.Details of insurance（if CIF）and the risks to be covered will also be shown.The credit will specify a latest date for shipment and an expiry date which is the latest date for presentation of documents.
Exporters are reminded to be extremely cautious about shipping goods on receipt of anunsolicited documentary credit or if a documentary credit is received directly from an issu-ing bank. From time to time forgeries of documentary credit have arisen and there have been instances where exporters have shipped and presented documents against a completely false instrument.If an exporter suspects a fraudulent transaction, the bank should be informed to check the authenticity of the documentary credit immediately.
Additionally, exporters on receipt of the documentary credit, should not only assess the strength of the issuing bank, but also consider any risks that may arise due to the country in which the issuing bank is based. There have been many instances in recent history where events in a particular country have resulted in an issuing bank being unable to honour its obligation under a documentary credit.Dun and Bradstreet—the credit agency—provide a credit rating on a country basis.
三、Methods of Settlement and Availability of Documentary Credits
According to UCP500（article 10）documentary credit may be made available in one of four ways as detailed below.
Sight payment. Payment is made to the seller locally upon presentation of conforming documents.A sight draft is usually called for although payment can be made against documents alone.If payment to the seller is made before the account is debited, interest will be charged from the date of payment to the date that the paying bank is reimbursed.If the buyer wishes, he or she can authorize the paying bank to claim payment by tele-transmission and have the seller's account debited upon receipt of the claim.
Deferred payment credit. This type of credit does not require the presentation of a draft.The nominated bank is authorized to debit the issuing bank's account at a future date against presentation of conforming documents.The date for payment is defned in the documentary credit, usually as a specifc number of days after the date of despatch of goods or after the date of presentation of the documents.It has become increasingly popular where the buyer does not wish the credit period to be represented by a bill of exchange as usually, under local law, it attracts stamp duty.
Consequently, when documents are presented“in order”by the seller, the bank does not accept a bill of exchange but instead gives a letter of undertaking to the seller advising him or her when he or she will receive his or her money. The main disadvantage is that, should the exporter wish to receive his or her money immediately, he or she does not have a bill of exchange to have discounted.Hence, if the credit is unconfrmed, the undertaking to effect payment on the due date is that of the issuing bank.Payment will only be effected on the due date by the nominated bank after taking account of the same factors involving sight payments.However, if the credit is confrmed, the undertaking to pay is made by the confrming bank.Payment will then be made on the due date by the nominated bank（if any）or by the confrming bank.
Negotiation sight or usance drafts may be drawn and negotiated by a bank. The credit may be made freely negotiable with any bank or negotiation may be restricted to a bank nominated by the issuing bank.Under this type of credit, the seller is responsible for any negotiation interest unless the negotiating bank is specially authorized by the buyer to charge interest to his or her account.
Acceptance credits. This type of credit requires a presentation of a usance draft drawn on the bank nominated as accepting bank.The draft is accepted by the bank, payable at a future date, usually fxed in the documentary credit as a specifc number of days from the date of despatch of goods.
Originally this facility was provided by merchant banks. The bank establishes its own credit in favour of the exporter.The credit provides for bills to be drawn by the exporter on the bank which are accepted by the latter and can then be discounted in the money market at the fnest rates.It is usual for such credits to run parallel with the bills drawn by the exporter on his or her overseas buyer and which he or she lodges with the bank for collection.The bills under the credit will be drawn on the same terms as those of the buyers and in due course the payment received for the commercial bills will meet the dues to the bank on its acceptances.Exporters who take advantage of fnance from their bank under a documentary credit will be charged interest on the amount advanced.The period for which interest is charged will vary for each transaction.
In situations where the buyer has requested an amendment to the documentary credit, it is important that the exporter in varying the payment terms under the documentary credit does not relinquish control of the goods. When an amendment has been received, the following check list must be followed：（a）have all the relevant points been covered；（b）is the exporter in complete agreement with the new terms；（c）has the amendment been made to a confirmed documentary credit, and if so, has the confrming bank chosen to extend its confrmation to cover the amended terms；（d）does the amendment extend the expiry date of the documentary credit, and is this covered by the bank's confrmation；and（e）if the documentary credit is being amended because of the fault of the buyer, can the exporter ensure that all costs related to the amendment are borne by the buyer, including the advising bank's charges.
If the documentary credit is irrevocable the exporter does not have to accept any amendments， and the exporter has the right to reject any amendment up to and including the presentation of the documents. However, if an amendment has several elements to itthe exporter may either reject or accept all of them.
（一）Transferable Credits
Article 48 of UCP500 covers the provisions of transferable credits, which we will now examine. These arise where the exporter or seller is obtaining the goods from a third party, say the actual manufacturer, and as a middleman, does not have the resources to buy outright and await payment from his or her overseas buyer.Part or all of their rights andobligations under the credit are transferred to the actual supplier of the goods（transferee）.The credit is established in favour of the middleman seller（prime beneficiary），and authorizes the advising bank to accept instructions from the prime benefciary to make the credit available, in whole or in part, to one or more third parties（second benefciaries）.The credit is then advised to the second benefciary in the terms and conditions of the original, except that the amount and unit price are reduced and the shipment and expiry dates shortened.The original credit is for the price the buyer is paying to the prime benefciary, but the latter will be obtaining the goods at a lower price and so the credit is transferred for a smaller amount.When the second benefciary presents shipping documents, he or she obtains payment for his or her invoice price, and the prime benefciary is called upon to substitute his or her own invoice and receive the difference（i.e.profit）.The negotiating bank then has documents in accordance with the original credit.
Where there is more than one second benefciary, the credit must permit part shipments. If the prime benefciary does not wish his or her buyer and supplier to be aware of each other, he or she may request that his or her name be substituted for that of the opener on the transfer credit, and that shipping documents be in the name of a third party, blank endorsed.
In the event that the name of the ultimate supplier is known, the buyer can restrict the transfer to that party. Otherwise the buyer could be faced with receiving goods from an unknown supplier without knowledge as to their integrity or ability to provide goods of the required quality.Any subsequent presentation of documents may be made by the transferee rather than the original benefciary.
（二）Back-to-back Credits
Back-to-back credits arise in circumstances similar to those of the transferable credit and particularly where the supplier as well as the buyer is overseas. In this case, the middleman receives a credit in his or her favour from the buyer and asks his or her bank to establish a credit in favour of his or her supplier against the security of the credit in his or her own favour.Thus, the documentary credit is issued on the back of and against the security of another documentary credit（the Master documentary credit）on the understanding that reimbursement will stem from the documents presented under the Master documentary credit.Both documentary credits cover the shipment of the same goods.There are two separate credits, not one as in the case of a transferable credit, and this can create problems in the matching of documents and credit terms.
Consider the example of a trader who identifed that metals readily available in Eastern Europe were urgently required in India. However, in view of the sums involved, the seller insisted that payment by the trader be by means of a Letter of Credit.As the ultimate buyer in India was also willing to issue a Letter of Credit in favour of the trader, the, two documents were matched and the deal was successfully concluded to the satisfaction ofthe East European supplier, Indian buyer and the traders.Back-to-back Letters of Credit are complicated and exporters are advised to contact their international bank for advice.
（三）Revolving Credits
Revolving credits are used where there are shipments in a series at intervals and the parties wish the programme to proceed without interruption. An example would be a structured work flow such as a production run or growth season.A credit is established for a certain sum and quantity of goods with a provision that, when a shipment has been made and documents presented and paid, the credit automatically becomes reavailable in its original form and another shipment can be made, and so on.
Such credits can revolve either by time or by amount. In the case of a credit which revolves by time, a stated amount is available in a given period.The full amount is then automatically available when a new period is entered.A credit which revolves by amount is usually expressed as being available up to a fxed amount for anyone drawing.
If the credit revolves automatically the amount drawn immediately becomes available again on the conditions specifed in the credit. For credits which do not revolve automatically, each instalment can only be reinstated by way of an amendment to the credit.This option gives the client more control over the operation of the credit.
A further variant is a cumulative revolving credit which, for credits which revolve by time， allows undrawn amounts in a particular time period to be carried forward to a subsequent period. A non-cumulative credit means that any undrawn portion cannot be carried forward in this way.
（四）Red Clause Credits
Originally a feature of the Australian wool trade, red clause credits contain a clause（traditionally written in red ink）authorizing the nominated bank to advance a proportion of the value of the credit to the seller before shipping documents are presented. This enables the seller to purchase raw materials or to pay other costs（e.g.transportation）prior to receiving full payment once confrming documents have been presented.
Advances of this nature are entirely at the buyer's risk and are generally made against a simple statement from the seller that they will refund the amount if they do not ship the goods as required. Unless the buyer has made other arrangements, the buyer's account will be debited as soon as an advance has been made.
Advance payments under a credit are more common where they are payable to the seller upon production of a bank guarantee. In this case, the buyer would be able to claim from the guarantor bank if the seller did not repay the advance.If the buyer has any reason to doubt the standing of the guarantor bank, it would be advisable to have such guarantees issued（not simply advised）through the buyers bank or another major bank well-known to the buyer.(www.xing528.com)
（五）Standby Letters of Credit
This type of credit differs from other types, in that the buyer and seller hope it will never be drawn upon. A standby letter of credit performs a similar function to a bank guarantee, but is issued in a format corresponding to that of a documentary credit.Stand by credit provides a safeguard for the seller, by offering a fnancial remedy if the buyer does not honour its contractual obligations.Standby letters of credit are often used as security for open account trading where the seller requires some kind of“back up”in the event of the buyer not paying for the goods.They normally require the issuing bank to make payment to the seller upon presentation of documents evidencing nonpayment by the importer.They are also commonly used in some countries as a substitute for a bank guarantee which, due to the regulations in that country are not generally acceptable；a prime example of this method is seen in the USA.Standby credit is not intended to form the payment mechanism for a transaction.
In such instances, standby letters of credit have the advantage of being subject to the Uniform Customs and Practice for Documentary Credits Brochure 400，whereas at the mo-ment there are no internationally agreed regulations for bank guarantees.
（六）SWIFT Letter of Credit Codes
四、Checking up on a Letter of Credit by the Beneficiary
The following checklist points that a benefciary of a commercial letter of credit should consider when receiving the letter of credit and when preparing required documents.
Are the names and addresses of the buyer and seller spelled correctly
Is the credit irrevocable and issued in accordance with the latest International Chamber of Commerce（ICC）publication of the Uniform Customs and Practice for Documentary Credits（UCP）
Which bank issued the credit Is this bank satisfactory, or should a U. S.bank add its confrmation?
Do the terms of the letter of credit agree with the terms of the contract Can you meet these terms?
Is the shipping schedule, as stipulated in the letter of credit, realistic If necessary, is partial shipment or transshipment allowed?
Is the merchandise described correctly, including unit price, weight, and quantities?
Can presentation of documents be made on time Will documents arrive before the expiration date and any other time limits indicated in the letter of credit?
Are the points of shipment and destination as agreed?
Are the terms of sale regarding freight charges and insurance as agreed?
If necessary, is the credit transferable?
Are the payment terms as agreed If time payment terms are stated, which party is responsible for discount and acceptance charges?
Which party is responsible for banking charges?
五、Common Discrepancies in Letters of Credit
Documents presented after the expiration date of the letter of credit.
Documents presented more than twentyone days after shipment（or other date specifed in the letter of credit）.
Missing documents, such as a full set of bills of lading, insurance certificates, inspection certifcates.
Description of merchandise on the invoice differs from the description in the letter of credit（such as being written in a different language or different wording in the same language）.
Shipment terms and charges（exworks, CFR, CIF）on invoice differ from the terms specifed in the letter of credit.
Transshipment when it is not allowed.
Shipment made after the date specifed in the letter of credit.
On board stamp on bills of lading not dated and signed or initialed by the carrier or his agent.
Bills of lading improperly consigned not endorsed, or show damage to goods. Documents inconsistent with one another（e.g.，weights or packing information not the same on all documents presented）.
Insurance document not as per the credit terms, not in a suffcient amount, not endorsed, or after the shipment date.
Drafts drawn on wrong person or for wrong amount or not signed or endorsed.
Invoice not made out in the name of the applicant shown on the letter of credit.
六、Discrepancies with Documents
Perhaps the greatest problem with documentary letters of credits is discrepancies with documents as they are prepared, presented, and reviewed by sellers, buyers, and thebanks. All parties have the obligation to check the documentation to make certain it is in order and all parties are at risk for failing to do so properly.
The buyer can introduce problems to the process by specifying documents that are diffcult or impossible to obtain. The seller can introduce problems by incorrectly preparing and presenting the document package to the bank.Advising, confrming, and issuing banks can introduce problems by incorrectly reviewing（negotiating in bank language）the documents provided by the seller against the requirements of the documentary credit.
Conformity with the Documentary Credit
The key issue is that the documents presented by the seller must be in conformity with the specifcations of the letter of credit. Once again, banks deal in documents, not goods.The banks, therefore, are seeking conformity of the documentation to the wording of the credit and not of the goods to the documents.
Bank Options
Banks have up to seven banking days following the receipt of documents to examine and notify the party from which it received the documents of their acceptance or nonacceptance. If a bank involved in the transaction fnds discrepancies in the documents, it has several options：
The advising or confirming bank can refuse to accept the documents and return them to the seller（benefciary）so that they can be corrected or replaced.
The issuing bank, if it feels the discrepancy is not material to the transaction, can ask the buyer（applicant）for a waiver for the specifc discrepancy, but must do so within seven banking days.
The advising or confrming bank can remit the documents under approval to the issuing bank for settlement.
The issuing or confrming bank can return the incorrect document（s）directly to the seller for correction or replacement and eventual return directly to the issuing or confrming bank.
The confrming bank can proceed with payment to the seller but require a guarantee from the seller for reimbursement if the issuing bank does not honor the documents as presented.
If there is a discrepancy, the buyer and seller must communicate directly and then inform the banks of their decision. In the case of serious discrepancies, an amendment to the credit may be necessary.
The seller may request the opening bank to present the documents to the buyer on a collection basis. However, the buyer may refuse to accept the documents/merchandise.
七、Documentary Collections
A documentary collection is like an international COD（Cash On Delivery）transaction：the buyer pays for goods at delivery. A documentary collection, however, is distinguished from a typical COD in two ways：（1）instead of an individual, shipping company, or postal service collecting the payment, a bank handles the transaction, and（2）instead of cash on delivery for goods it is cash on delivery for documents, including a title document（negotiable bill of lading）that is used to claim the goods from the shipping company.
Banks, therefore, act as intermediaries to collect payment from the buyer in exchange for the transfer of documents that enable the holder to take possession of the goods. The procedure is easier than a documentary credit, and the bank charges are lower.The bank, however 9 does not act as surety of payment but rather only as collector of funds for documents.
（一）Documentary Collections vs.Documentary Credits
In a documentary collection, the seller prepares and presents documents to the bank in much the same way as for a documentary letter of credit. However, there are two major differences between a collection and a letter of credit：（1）the draft involved is not drawn by the seller（the“drawer”）upon a bank for payment, but rather on the buyer（the“drawee”），and（2）the seller's bank has no obligation to pay upon presentation but, more simply, acts as a collecting or remitting bank on behalf of the seller, thus earning a commission for its services.
The presenting（collecting）bank reviews the documents making certain they are in conformity with the collection order. Goods are transported, stored, and insured at the expense and risk of the seller until payment or acceptance occurs.
（二）The Collection Order
The collection order is the key document prepared by the seller specifying the terms and conditions of the documentary collection. It must be prepared with care and precision because banks are permitted to act only upon the instructions given.Listed below are key provisions of the collection order.
The payment type and period as agreed with the buyer；
The name and address of the buyer；
The buyer's bank；
Instructions, if any, about what to do with the accepted bill of exchange；
Notation concerning payment of charges for the documentary collection；
Instructions for the lodging of a protest in the event of nonacceptance or nonpayment；
Instructions for notifcation of agent or representative in the buyer's country.
（三）Documents and Goods Movement in a Documentary Collection
The buyer and seller agree on the terms of sale of goods.
The seller ships the goods to the buyer（drawee）and obtains a negotiable bill of lading from the shipping frm.
The seller prepares and presents（remits）a document package to the bank（the remitting bank）consisting of（a）a collection order specifying the terms and conditions under which the bank is to hand over documents to the buyer and receive payment，（b）the negotiable bill of lading）and（c）other documents as required by the buyer.
The remitting bank sends the documentation package by mail or courier to the designated collecting bank in the buyer's country with instructions to present them to the drawee（buyer）and collect payment.
The collecting bank（a）reviews the documents making certain they are in conformity with the collection order，（b）notifies the buyer（drawee）about the terms and conditions of the collection order, and（c）releases the documents once the payment conditions have been met.
The buyer（drawee）（a）makes a cash payment（signing the draft），or if the collection order allows signs an acceptance（promise to pay at a future date）and（b）receives the documents and takes possession of the shipment.
The collecting bank pays the remitting bank either immediately or at the maturity date of the accepted bill of exchange.
The remitting bank then pays the seller（principal）.
八、Important Principles Regarding the Role of Banks
Documentary letter of credit and documentary collection procedures are not infallible. Things can and do go wrong.Since banks act as intermediaries between buyers and sellers, both look to the banks as protectors of their interests.However, while banks have clear cut responsibilities, they are also shielded from certain problems deemed to be out of their control or responsibility.Several instances：
In a documentary letter of credit, banks act upon specifc instructions given by the applicant（buyer）in the documentary credit application. Buyer's instructions left out of the credit by mistake or omitted because“we've always done it that way”don't count.The buyer, therefore, should take great care in preparing the application so that it gives complete and clear instructions.
In a documentary collection, banks act upon specifc instructions given by the prin-cipal（seller）in the collection order. Seller's instructions left out of the collection order by mistake or omitted because“we've always done it that way”don't count.The principal, therefore, should take great care in preparing the collection order so that it gives complete and clear instructions.
Banks are required to act in good faith and exercise reasonable care to verify that the documents submitted appear to be as listed in the letter of credit or collection order. They are, however, under no obligation to confrm the authenticity of the documents submitted.
Banks are not liable for the acts of third parties. Third parties include freight forwarders, agents, customs authorities, insurance companies and other banks.They also are not responsible for delays or consequences resulting from Acts of God（floods, earthquakes, etc.），riots, wars, civil commotions, strikes, lockouts, or other causes beyond their control.
Banks also assume no liability or responsibility for loss arising out of delays or loss in transit of messages, letters, documents, etc.
Banks assume no responsibility regarding the quantity or quality of goods shipped. They are only concerned that documents presented appear on their face to be consistent with the instructions in the credit or collection order.Any dispute must be settled between the buyer and the seller.
Without explicit instructions, the banks take no steps to store or insure the goods. This can be a problem for both the seller and the buyer.A seller who has not received payment still has ownership and an insurable interest in the goods.
If a documentary collection remains unpaid or a bill of exchange is not accepted and the collecting bank receives no new instructions within 90 days, it may return the documents to the bank from which it received the collection order.
So long as the documents presented to the banks appear on their face to comply with the terms and conditions of a letter of credit, banks may accept them and initiate the payment process as stipulated in the credit.
If there are any conclusions to be made from the above they are：frst, that the buyer and seller should know each other and have at least some basis of trust to be doing busi-ness in the frst place, and secondy that all parties to the transaction should take responsibility to follow carefully through on their obligations.
本章小结
常用的国际贸易的支付方式有三种，即汇付、信用证和托收，其中信用证项下单据的缮制要求最为严格。
信用证是一项不可撤销的业务安排，是银行做出的一项有条件的付款承诺，也是一个独立于合同之外的自足文件，以及银行与受益人之间的单据的交易。
信用证的种类有跟单信用证和光票信用证、即期和远期信用证、保兑和不保兑信用证、可转让和不可转让信用证、公开议付和限制议付信用证等。按照信用证的传递方式，有电开信用证和信开信用证，现在使用最多的是电开信用证，尤以SWIFT信用证最为普遍。
信用证的业务流程包括：申请开证→开证→通知→审证→修改→交单议付→索汇→赎单。
审核信用证和修改信用证是缮制单据的基础。因此，我们应该十分熟悉信用证的内容。国际商会的UCP是被普遍接受的有关信用证业务的国际惯例，也是制单的依据之一，因此我们给出了它的英文最新版本。在重点审核信用证的基础上，对于信用证中与合同不符、申请人有意增加以及由于开证疏忽而产生的拼写、遗漏错误等，应区分性质和具体情况决定是否要求改证，对于不能接受的条款，应按照正确的途径要求申请人或开证银行改证。托收方式下缮制单据的要求和特点是我们应该加以注意和掌握的。在本章的英文阅读中，除UCP600英文版本之外，我们也编纂了一些信用证性质、使用和信用证种类（如背对背信用证、红条款信用证）的教科书节选，它们会强化我们对信用证的认识和帮助我们更快熟悉信用证的表述。
实训一
翻译下面的信用证。
信用证
Sender：BKSIBDDH013 Message Type：MT700
BASIC BANK LIMITED
G. R.PLAZA
5.JUBILEE ROAD
4000 CHITTAGONG
27 SEQUENCE OF TOTAL 1/2
40A FORM OF L/C（Y/N/T）
IRREVOCABLE
20 DOCUMENT CREDIT NO.
127908060063
31C DATE OF ISSUE 080812
40E APLL1CABLE RULES
UCP LATEST VERSION
31D DATE AND PLACE OF EXPIRE
080909.CHINA
50 APPLICANT
WELL FASHION LTD
PLOT NO. A-23，24，25.26，BSCIC
INDUSTRIAL ESTATE, KALURGH AT
CHITTAGONG. BANGLADESH
59 BENEFICIARY
YANGZHOU JIM IMP. AND EXP.CORP.LTD
8FL（X）R, WEIHENG MANSION, HANJIANG ROAD，
YANGZHOU JIANGSU, P. R.CHINA
32B CURRENCY CODE. AMOUNT
USD33，858. 00
41D AVAILABLE WITH. BY
ANY BANK IN CHINA
BY NEGOTIATION
42C DRAFTS AT
120 DAYS SIGHT
42A DRAWEE
BKSIBDDH013
43P PARTIAL SHIPMENT
ALLOWED
43T TRANSSHIPMENT
ALLOWED
44A LOADING ON BOARD
ANY SEAAND/OR AIR PORT OF CHINA
44B FOR TRANSPORTATION TO
CHITTAGONG/DHAKA ON CFR/CPT BASIS AS PER INCOTERMS 2000
44D SHIPMENT PERIOD
WITHIN 25-AUG.-2008，50 PCT OF GOODS MUST BE SHIPPED WITHIN 20，b AUGUST.
47A ADDITIONAL CONDITIONS
ALL SHIPPING DOCUMENTS MUST BEAR THE ABOVE DOCUMENTARY CREDIT（DC）NUMBER.
H. S.CODE NO.5209.32.30，IRC NO.BA112901.LCA NO.8491 MUST BE MENTIONED IN THE COMMERCIAL INVOICE.
THE WORD“IMPORT UNDER BACK TO BACK BASIS AGAINST CONTRACT NO. WIN/WFL/PCC-NB19B100/FG3750BT/BP/NB 19B102/NB 19B103/08 DT.27.07.2008”MUST BE APPEAR IN THE COMMERCIAL INVOICE.
SHIPMENT BY ISRAELI OR ANY UNITED NATIONS SANCTIONED COUNTRY FLAG VESSELS/CARRIER OR ANY VESSEL/CARRIER CALLING AT ANY PORT OF ISRAEL OR ANY UNITED NATIONS-SANCTIONED COUNTRY PROHIBITED. A CERTIFICATE TO THIS COMPLIANCE ISSUED BY THE CARRIER/AGENT MUST ACCOMPANY THE ORIGINAL DOCUMENTS.
GOODS MUST BE SHIPPED IN BANGLADESH FLAG VESSEL/CARRIER OR ANY REG-ULAR LINER VESSEL/CARRIER AND B/L AND/OR AIR WAYBILL SHOULD BE ISSUED BY THE CARRIER OR THEIR AGENT. CERTIFICATE TO THIS COMPLIANCE FROM CARRIER/AGENT MUST ACCOMPANY THE ORIGINAL DOCUMENTS.
PACKING：FABRICS MUST BE IN EXPORT STANDARD SEAWORTHY ROLL COV-ERED WITH PLASTIC BAG OF 18. 29 METERS（20 YARDS）UP EACH ROLL AND COUNTRY OF ORIGIN OF THE GOODS MUST APPEAR THEREON.A DECLARATION TO THIS COMPLIANCE MUST APPEAR ON THE PACKING LIST.
FULL SET OF NON-NEGOTIABLE COPY OF SHIPPING DOCUMENTS COMPRISING B/L OR AIRWAY BILL. INVOICE, PACKING LIST AND ALL OTHER CERTIFICATES MUST BE SENT BY BENEFICIARY TO THE APPLICANT BY INTERNATIONAL COURIER WITHIN 7 DAYS FROM THE DATE OF SHIPMENT.BENEFICIARY'S DECLARATION TO THIS EFFECT ALONGWITH ORIGINAL COURIER RECEIPT MUST ACCOMPANY THE ORIGINAL DOCUMENTS.
DOCUMENTS DATED PRIOR TO THE DATE OF THIS DC NOT ACCEPTABLE.
INVOICE VALUE EXCEEDING CREDIT AMOUNT NOT ACCEPTABLE.
SHORT FORM/BLANK BACKED BILL OF LADING NOT ACCEPTABLE. NON-NEGOTI-ABLE SEA WAYBILL ALSO NOT ACCEPTABLE.
ALL DOCUMENTS MUST BE PREPARED IN ENGLISH LANGUAGE AND ALL ORIGI-NAL DOCUMENTS MUST BE MANUALLY SIGNED.
A CHARGE OF USD50. 00 WILL BE DEDUCTED FROM THE PROCEEDS FOR EACH SET OF DISCREPANT DOCUMENTS PRESENTED.
71B CHARGES
ALL BANK CHARGES EXCEPT DC OPENING CHARGES ARE ON BENEFICIARY'S ACCOUNT.
48 PERIOD FOR PRESENTATION
WITHIN 15 DAYS AFTER THE DATE OF SHIPMENT BUT WITHIN THE VALIDITY OF THE CREDIT.
CONFIRMATION INSTRUCTION
49 WITHOUT
78 INSTR TO PAY/ACCEP/NEG
UPON RECEIPT OF DOCUMENTS DRAWN IN CONFORMITY WITH THE TERMS AND CONDITIONS OF THE CREDIT WE WILL CONVEY YOU MATURITY DATE OF BILL AND SHALL ARRANGE REMITTANCE OF THE BILL PROCEEDS IN DC CURRENCY TO YOUR DESIGNATED ACCOUNT AS PER YOUR INSTRUCTION. ORIGINAL DOCUMENTS MUST BE SENT TO“BASIC BANKLIMITED, JUBILEE ROAD BRANCH，5 JUBILEE ROAD, CHITTAGONG, BANGLADESH”.
ALL NEGOTIATION MUST BE ENDORSED ON ORIGINAL CREDIT AND SAME TO BE DECLARED IN NEGOTIATION SCHEDULE.
THIS IS AN OPERATIVE CREDIT INSTUMENT AND NO MAIL CONFIRMATION
WILL FOLLOW.
57A ADVISE THROUGH BANK
BKCHCNBJ95H
72 SENDER TO RECEIVER INF
EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN, THIS CREDIT IS
SUBJECT TO UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDIT，
2007 REVISION ICC PUBLICATION NO. 600
27S EQUENCE OF TOTAL
2/2
20 DOCUMENT CREDIT NO. 127908060063
45B DESCRIPTION OF GOODS
FABRICS FOR 100 PCT EXPORT ORIENTED READY MADE GARMENTS INDUSTRY：
DESCRIPTION, QUANTITY UNIT PRICE AND AMOUNT ARE AS FOLLOWS：
DESCRIPTION QUANTITY UNIT PRICE AMOUNT
16200YDS OF 100 PCT. COTTON YARN DYED CANVAS：
72X64. 21S/21S，57/58 INCHES AT USD2.09/YD USD33，858.00
STYLE：NO. WM3750BT
THE QTY. BREAKDOWN AS BELOW：
NO. RB-1227-A3/NAVY STRIPEf00 YDS
NO. RB-1227-G/KHAKI STRIPE：8100YDS TOTAL USD33，858.00
AS PER BENEFICIARY'S PROFORMA INVOICE NO. JTX515（RV）.DT.04-AUGUST-2008
46B DOCUMENTS REQUIRED
THE CREDIT IS AVAILABLE BY BENEFICIARY'S DRAFT AT 120 DAYS SIGHT FOR FULL INVOICE VALUE IN DUPLICATE DRAWN ON ISSUING BANK AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS：
BENEFICIARY'S SIGNED COMMERCIAL INVOICE IN 6 COPIES（2 ORIGINAL AND 4 COPIES）WITH FULL PARTICULARS OF GOODS AND BEARING THE CLAUSE“WE CERTIFY THAT（A）THIS INVOICE IS AUTHENTICATED，（B）IT IS THE ONLY INVOICE ISSUED BY US FOR THE GOODS DESCRIBED HEREIN，（C）IT SHOWS THEIR EXACT VALUE WITHOUT DEDUCTION OF ANY DISCOUNT（D）THEIR ORIGIN IS CHINA”.
FULL SET（3/3）ORIGINAL PLUS TWO COPIES OF NON-NEGOTIABLE CLEAN“SHIPPED ON BOARD”OCEAN BILLS OF LADING/AIRWAY BILL MADE OUT TO OR-DER OF“BASIC BANK LIMITED, JUBILEE ROAD BRANCH CHITTAGONG, BANGLA-DESH“MARKED“FREIGHT PREPAID”AND NOTIFY：APPLICANT AND DC ISSUING BANK WITH NAME AND FULL ADDRESS.
ALL SHIPMENT UNDER THIS CREDIT MUST BE ADVISED BY BENEFICIARY WITH-IN 7 DAYS AFTER SHIPMENT DIRECT TO M/S. ASIA INSURANCE LIMITED, AGRABAD BRANCH, PROGRESSIVE TOWER（2ND FLOOR）1837 AGRABAD C/A, CHITTAGONG BANGLADESH QUOTING THEIR MARINE COVER NOTE NO.AIL/CTG/AGB/MC-287/08/2008 DATED 11.08.2008 COPY OF WHICH MUST ACCOMPANY THE ORIGINAL DOCUMENTS.
DETAILED PACKING LIST IN FOUR COPIES（2 ORIGINAL AND 2 COPIES）
CERTIFICATE OF ORIGIN IN THREE COPIES（1 ORIGINAL AND 2 COPIES）ISSUED BY THE BENEFICIARY.
47B ADDITIONAL CONDITIONS
COMBINED DRAWINGS AND BILL OF LADING ARE NOT ACCEPTABLE
THIRD PARTY SHIPPER'S/EXPORTER'S DOCUMENTS ARE NOT ACCEPTABLE
PRESHIPMENT INSPECTION CERTIFICATE FOR QUALITY, QUANTITY. PRICE, PACKING SHOULD BE CARRIED OUT BY BENEFICIARY AND INSPECTION DATE MUST EARLIER THAN THE SHIPMENT DATE.WHICH MUST ACCOMPANY THE ORIGINAL DOCUMENTS.
INVOICE VALUE EXCEEDING CREDIT AMOUNT NOT ACCEPTABLE.
BENEFICIARY MUST ADVISE SHIPMENT DETAILS TO APPLICANT BY FAX/E. MAIL WITHIN 5（FIVE）DAYS FROM THE DATE OF SHIPMENT.ORIGINAL COPY OF ADVICE SHOULD ACCOMPANY THE ORIGINAL DOCUMENTS.
NAME, ADDRESS, CONTRACT PERSON. PHONE AND FAX NUMBER OF THE LOCAL AGENT OF CARRIER IN BANGLADESH MUST BE MENTIONED IN THE BILL OF LADING.
INTEREST FOR THE USANCE PERIOD SHALL BE PAID BY THE OPENER AT“LIBOR”PREVAILING AT THE DATE OF NEGOTIATION. IF THE BILL IS PAID BEFORE MATURITY, INTEREST SHALL BE REDUCED PROPORTIONALLY.
8100 YDS FABRICS MUST BE SHIPPED WITHIN 20. 08.2008
NOTWITHSTANDING THE PROVISIONS OF UCP 600. IF WE HAVE ISSUED NOTICE OF REFUSAL OF DOCUMENTS PRESENTED UNDER THIS CREDIT, WE SHALL HOWEVER RETAIN THE RIGHT TO ACCEPT.A WAIVER OF DISCREPENCIES FROM THE APPLICANT AND SUBJECT TO SUCH WAIVER BEING ACCEPTABLE TO US, TO RELEASE DOCUMENTS AGAINST THAT WAIVER WITHOUT REFERENCE TO THE PRESENTER PROVIDED THAT NO AUTHENTICATED INSTRUCTION TO THE CONTRARY HAVE BEEN RECEIVED BY US FROM THE PRESENTER BEFORE THE RELEASE OF DOCUMENTS.ANY SUCH RELEASE PRIOR TO RECEIPT OF CONTRARY INSTRUCTIONS SHALL NOT CONSTITUTE A FAILURE ON OUR PART TO HOLD THE DOCUMENTS AT THE PRESENTER RISK AND DISPOSAL AND WE WILL HAVE NO LIABILITY TO THE PRESENTER IN RESPECT OF ANY SUCH RELEASE.
=End of Message=
实训二
根据合同审核信用证，找出需要修改的不符点。
销售合同1
SALES CONTRACT
Contract No.：98SGQ468001
Date：APR. 22.1998
Telex：0835
Sellers：GUANGDONG LIGHT ELECTRICAL APPLIANCES CO, LTD
Address：52 DEZHENG ROAD SOUTH, GUANGZHOU. CHINA
Buyers：ABC CORP.
Address：AKEDSANTERINK AUTO P. O.BOX 9，FINLAND
This Sales Contract is made by and between the Sellers and the Buyers, whereby the Sellers agree to sell and the Buyers agree to buy the under-mentioned goods according to the terms and conditions stipulated below：
Packing：12PCS IN A CARTON
Delivery from GUANGZHOU to HELSINKI
Shipping Marks：
Time of Shipment：
Within 30 days after receipt of L/C allowing transshipment and partial shipment.
Terms of Payment：
By 100%Confirmed irrevocable Letter of Credit in favor of the Sellers to be available by sight draft to be opened and to reach China before MAY 1 1998 and to remain valid for negotiation in China until the 15th days after the foresaid Time of Shipment. L/C must mention this contract number.L/C advised by BANK OF CHINA, GUANGZHOU BRANCH.TLX：444U4K GZBC CN.All banking Charges outside China（the mainland of China）are for account of the Drawee.
Insurance：To be effected by Sellers for 110%of full invoice value covering FPA up to HELSINKI
Arbitration：
All dispute arising from the execution of or in connection with this contract shall be settled amicably by negotiation. In case of settlement can be reached through negotiation the case shall then be submit China International Economic Trade Arbitration Commision.In Shenzhen（or in Beijing）for arbitration in act with its sure of procedures.The arbitral award is fnal and binding upon both parties for setting the Disputes.The fee, for arbitration shall be borne by the losing party unless otherwise awarded.
The Seller：GUANGDONG LIGHT ELECTRICAL APPLIANCES CO.，LTD
The Buyer PAUL
信用证l
Issue of Documentary Credit
Issuing Bank：METITA BANK LTD.，FINLAND
Form of Doc. Credit：REVOCABLE
Credit Number：LRT9802457
Date of Issue：980428
Expiry Date：980416 Place FINLAND
Applicant：ABC CO.
AKEKSANTERINK AUTO P. O.BOX 9，FINLAND
Benefciary：GUANGDONG LIGHT ELECTRICAL CO, LTD.
52 DEZHENG ROAD SOUTH, GUANGZHOU, CHINA
Amount：USD 3，648. 00（SAY US DOLLARS THIRTY SIX THOUSAND FOUR
HUNDRED AND EIGHT ONLY）
Pos./Neg. Tol.（%）：5/5
Available with/by：ANY BANK IN ADVISING COUNTRY BY NEGOTIATION
Draft at. DRAFTS AT 20 DAYS'SIGHT FOR FULL INVOICE VALUE
Partial Shipments：Not Allowed
Transshipment：Allowed
Loading in Charge. Guangzhou
For Transport to：HELSINKI
Shipment Period：AT THE LATEST MAY 30，1998
Descript. of Goods：960PCS OF HALOGEN FITTING W500，USD6.80 PER PC AS PER SALES
CONTRACT 98SG468001 DD 22，04. 98 CIF HESINKI
Documents Required：
COMMERCIAL INVOICE 1 SIGNED ORIGINAL AND 5 COPIES
PACKING LIST 1 SIGNED ORIGINAL AND 5 COPIES
FULL SET OF CLEAN ON BOARD MARINE BILLS OF LADING, MADE OUT TO ORDER, MARKED“FREIGHT PREPAID”AND NOTIFY APPLICANT（AS INDICATE ABOVE）
GSP CERTIFICATE OF ORIGIN FORM A, CERTIFYING GOODS OF ORI-GIN IN CHINA, ISSUED BY COMPETENT AUTHORITIES
INSURANCE POLICY/CERTIFICATE COVERING ALL RISKS AND WAR RISKS OF PICC. INCLUDING WAREHOUSE TO WAREHOUSE CLAUSE UP TO FINAL DESTINATION AT HELSINKI.FOR AT LEAST 120 PCT OF CIF-VALUE
SHIPPING ADVICES MUST BE SENT TO APPLICANT WITHIN 2 DAYS AFTER SHIPMENT, ADVISING NumBER OF PACKAGES, GROSS&. NET WEIGHT, VESSEL NAME, B/L NO.AND DATE.CONTRACT NO.，VALUE
Presentation Period：3 DAYS AFTER ISSUANCE DATE OF SHIPPING DOCUMENT
Confrmation：WITHOUT
INSTRUCTIONS：THE NEGOTIATION BANK MUST FORWARD THE DRAFTS AND ALL, DOCUMENTS BY REGISTERED AIRMAIL DIRECT TO US IN TWO CONSECUTIVE LOTS, UPON RECEIPT OF THE DRAFTS AND DOCUMENTS IN ORDER, WE WILL REMIT THE PROCEEDS AS INSTRUCTED BY THE NEGOTIATING BANK.
根据所给资料（一份贸易合同，一份信用证）审核信用证，并将审核结果写在后面。
销售合同2
SALES CONTRACT
Contract No.：RT05342
Date：Mar. 20，2005
Signed at：SHANGHAI
Sellers：SHANGHAI TOOL IMPORT&EXPORT CO.，LTD Tel；021-65756156
Address：31，GANXIANG ROAD SHANGHAI, CHINA Fax：021-65756155
Buyers：MAMUT ENTERPRISES AV Tel：024-4536-2453
Address：TARRAGONA75-3ER, BARCELONA, SPAIN Fax：024-4536-2452
This contract is made by and between the Sellers and Buyers, where by the sellers agree to sell the buyers agree to buy the undermentioned goods according to the conditions stipulated below：
Packing：8pc Double Offset Ring Spanner Packed in 1 plastic carton of 16 sets each；9pc Extra Long Hex Key Set，12pc Combination Spanner，10pc Combination Spanner Packed in 1 plastic carton of 10 sets each；12pc Double Offset Ring Spanner Packed in 1 plastic carton of 16 sets each Packed in three，40 container
Delivery From SHANGHAI CHINA to BARCELONA SPAIN
Shipping Marks M. E
BARCELONA
C/No. 1-UP
Time of Shipment：Latest Date of Shipment May 10. 2005
Partial Shipment：Not Allowed
Transshipment；Allowed
Terms of Payment：By 100%Confrmed Irrevocable Letter of Credit to be available at 30 days af-ter sight draftto be opened by the sellers.
L/C must mention this contract number L/C advised by BANK OF CHINA SHANGHAI BRANCH. All banking charges outside CHINA（the mainland of China）are for account of Drawee. Arbitration：All dispute arising from the execution of or in connection with this contract shall be settled amicable by negotiation.In case of settlement can not be reached though negotiation, they shall then be submitted to China International Economic&Trade Arbi-tration Commission.In Shanghai（or in Beijing）for arbitration in act with its sure of procedures.The arbitral award is fnal and binding upon both parties for settling the dispute.The fee for Arbitration shall be borne by losing party unless otherwise awarded.
The Sellers：SHANGHAI TOOL IMPORT&EXPORT CO.，LTD
The Buyer：MAMUT ENTERPRISESAV
DOCUMENTARY CREDIT
SEQUENCE OF TOTAL 27：1/1
FORM OF DOCUMENTARY CREDIT 40B：REVOCABLE
DOCUMENTARY CREDIT NO. 20：31173
DATE OF ISSUE 31C：050401
DATE AND PLACE OF EXPIRY 31D：DATE 050531 PLACE CHINA
APPLICANT 50：MAMUT ENTERPRISESAV
TARRAGONA7S-3ER
BARCELONA, SPAIN
ISSUING BANK 52A：CREDIT ANDORRA
ANDORRA LA VELLA. ANDORRA
BENEFICIARY 59：SHANGHAI TOOL IMPORT&. EXPORT CO.，LTD
31，GANXIANG ROAD
SHANGHAI, CHINA
AMOUNT 32B：CURRENCY EUR AMOUNT 21. 892.00
AVAILABLE WITH/BY 41A：ANY BANK IN CHINA
DRAFTS AT 42C：AT SIGHT
DRAWEE 42A：CREDIT ANDORRA
ANDORRA LA VELLA. ANDORRA
PARTIAL SHIPMENTS 43P：ALLOWED
TRANSSHIPMENT 43T：NOT ALLOWED
LOADING ON BOARD 44A：SHANGHAI
FOR TRANSPORTATION TO 44B：BARCELONA（SPAIN）
LATEST DATE OF SHIPMENT 44D：050510
DESCRIPTION OF GOODS 45A HAND TOOLS
No. 20050339 AS PER PROFORMA INVOICE
DATED MARCH 10，2005
FOB BARCELONA
DOCUMENTS REQUIRED
46A：
SIGNED COMMERCIAL INVOICE，1 ORIGINAL AND 4 COPIES.
CERTIFICATE OF ORIGIN GSP CHINA FORM A. IS SUED BY THE CHAMBER OF COMMERCIAL OR OTHER AUTHORITY DULY ENTITLED FOR THIS PURPOSE.
PACKING LEST. l ORIGINAL AND 4 COPIES.
FULL SET OF B/L.（2 ORIGINAL AND 5 COPIES）CLEAN ON BOARD, MARKED“FREIGNT COLLECT”，CONSIGNED TO, MAMUT ENTERPRISES AV, TARRAGONA75-3ER BARCELONA, SPAIN，
TEL+376 823 322 FAX 376 860 914 860 807.
NOTIFY：BLUE WATER SHIPPING ESP ANA, ER
2NA, A，08003 BARCELONA（SPAIN）TEL 34 93 295
4848，FAX 34 93 268 16 81.
CHARGES 71B：ALL CHARGES OUTSIDE SPAIN ARE FOR BENEFICIA-
RY'S ACC.
PERIOD FOR PRESENTATION 48：DOCUMENTS MUST BE PRESENTED WITHIN 15 DAYS
AFTER THE DATE OF SHIPMENT BUT WITHIN THE VALIDITY OF THE CREDIT.
经过审核，我发现了该信用证中存在的不符点，分别如下：
1.___
2.___
3.___
4.___
5.___
6.___
实训三
下面是几篇出口商要求修改信用证有关内容的函件样本，针对课堂实训一、课堂实训二，发现的问题，参考样本草拟两份要求对方修改信用证的电子信函。
Dear Sirs，
Letter of Credit No. 3524 issued by the Bank of New South Wales has duly arrived.On perusal, we fnd that transshipment and partial shipments are not allowed.
As direct steamers to your port are few and far between, we have to ship via Hong Kong more often than not. As to partial shipment, it would be to our mutual beneft if we could ship immediately whatever is ready instead of waiting for the whole shipment to be completed.Therefore, we are asking you to amend your L/C to read“Partshipments and transshipment allowed”.
We shall appreciate it if you will modify promptly the L/C as requested. Yours faithfully，
Dear Sirs，
Re：Your Letter of Credit No. 5454
We have received your captioned Letter of Credit.
Among the clauses specified in your Credit we find that the following two points do not conform to the relative contract.
Your Credit calls for Manufacturer's Certifcate, which is not included in the Contract. In fact, the contracted commodity is a kind of agricultural produce.It is impossible to obtain a manufacturer's certifcate.
The contract number is 04/1245 instead of 03/1245.
As the goods are now ready for shipment, you are requested to amend your credit as soon as possible.
Yours faithfully, Dear Sirs
Re：L/C No. 345 Issued by First National City Bank
We have received the above L/C established by you in payment for your Order No. 678 covering 200 cases of……
When we checked the L/C with, the relevant contract, we found that the amount in your L/C is insuffcient. The correct total CIF New York value of your order comes to US$2，750.00 instead of US$2，550.00，the difference being US$200.00.
Your L/C allows us only half a month to effect delivery. But when we signed the contract we have agreed that the delivery should be made within one month upon receipt of the Letter of Credit.
As to packing, the contract stipulates that the goods should be packed in cartons and reinforced with nylon straps outside, but your L/C required metal straps instead. We think we should arrange the packing according to the contract.
In view of the above, you are kindly requested to increase the amount of your L/C by US$200. 00，extend the shipment and validity to September 15 and 30 respectively, as well as amend the term of packing.Meanwhile please advise us by fax.
Yours faithfully，
Dear Sirs，
Re：Your L/C No. AG4582
We have received your L/C No. AG4582 for the amount of£2，960 to cover your Order No.860 for 20 metric tons of.
The said credit calls for shipment on or before the 31st of December. As the earliest steamer sailing for your port is S.S.“PEACE”scheduled to leave Shanghai on or about January 3 next year, it is, therefore, impossible for us to effect shipment at the time you named.
This being the case, we have to ask you to extend the date of shipment to the 15th of January, under advice to us by fax.
Yours faithfully，
Dear Sirs，
L/C No. 2445M/T Frozen Rabbit Meat
We thank you for your L/C No. 244 for the captioned goods.We are sorry that owing tosome delay on the part of our suppliers, we are unable to get the goods ready before the end of this month.So we write to you asking for an extention.
It is expected that the consignment will be ready for shipment in the early part of May and we are arranging to ship it on S. S.“Red Star”sailing from Shanghai on May 10.
We are looking forward to receiving your extension of the above L/C, thus enabling us to effect shipment of the goods in question.
Yours faithfully，
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