The international standard banking

At its May 2000 meeting the Commission on Banking Technique and Practice of the International Chamber of Commerce (ICC Banking Commission) established a task force to document international standard banking practice for the examination of documents presented under documentary credits issued subject to the Uniform Customs and Practice for Documentary Credits, the International Chamber of Commerce's Publication No. 500 (UCP).
The international standard banking practices documented in this publication are consistent with the UCP and the Opinions and Decisions of the ICC Banking Commission. This document does not amend UCP. It explains how the practices articulated in the UCP are to be applied by documentary practitioners. It is, of course, recognized that the law in some countries may compel a different practice than that stated here. No single publication can anticipate all the terms or the documents that may be used in connection with documentary credits or their interpretation under the UCP and the standard practice it reflects. However, the task force preparing this publication has endeavoured to cover terms commonly seen on a day-to-day basis and the documents most often presented under documentary credits.
It should be noted that any term in a documentary credit which modifies or affects the applicability of a provision of the UCP may also have an impact on international standard banking practice. Therefore, in considering the practices described in this publication, parties must take into account any term in a documentary credit that expressly excludes or modifies a provision in an article of the UCP. This principle is implicit throughout this publication, whether or not stated, but it is sometimes expressly repeated for purposes of emphasis or for illustration. Where examples are given, these are solely for the purpose of illustration and are not exhaustive. This publication reflects international standard banking practice for all parties to a documentary credit. Since applicants' obligations, rights, and remedies depend upon their undertaking with the issuing bank, the performance of the underlying transaction, and the timeliness of any objection under applicable law and practice, applicants should not assume that they may rely on these provisions in order to excuse their obligations to reimburse the issuing bank. The incorporation of this publication into the terms of a documentary credit should be discouraged, as the requirement to follow agreed practices is implicit in the UCP. Because this publication reflects current documentary credit practice as provided by ICC national committees and individual ICC members, it will be of considerable use in the formulation of any future revision of the UCP.