InternationalStandardBankingPracticeForewordThepublicationInternationalStandardBankingPracticefortheExaminationofDocumentsunderDocumentaryLettersofCreditistheproductof2.5yearsofworkbyataskforceoftheICCBankingCommission.ItwasapprovedbythefullCommissionatitsmeetinginRomeinOctober2002,atwhichtime,theCommissionvotedtomakeitanofficialdocumentoftheICC.TheISBP,asitismorecommonlycalled,isapracticalcomplementtoUCP500,ICC'suniversallyusedrulesondocumentarycredits.AlthoughitdoesnotamendtheUCP,itexplains,inexplicitdetail,howtherulesaretobeappliedonaday-to-daybasis.Assuch,itfillsaneededgapbetweenthegeneralprinciplesannouncedintherulesandthedailyworkofthedocumentarycreditpractitioner.ThetaskforcethatdevelopedtheISBPwasmeticulousinseekingtodocumentinternationalpracticeinthefield.ItstartedbyaskingICCnationalcommitteesandmemberstosendchecklistsonhowdocumentswereexaminedintheirbanks.Some39nationalcommitteesandasubstantialnumberofindividualbanksresponded.Cullingthesecommentsrequired14taskforcemeetingsandfourdifferentdraftsbeforetheISBPwasfinallyinashapetobeapproved.Thetaskforcedeservesconsiderablecreditforhavingproceededsocarefully.TheobjectoftheexercisewastodocumentinternationalstandardbankingpracticefortheexaminationofdocumentsundertheUCP;itwasnottoreportonindividualcountrypracticesthatmaydifferinsomewayfromthenorm.TheUCPwascreatedtobringuniformitytoafieldinwhichindividualpracticesoftendiffered,tothedetrimentofdocumentarypractitionersinallcountries.ByusingtheISBP,documentcheckerscanbringtheirpracticesinlinewiththosefollowedbytheircolleaguesworldwide.Theresultshouldbeasignificantreductioninthenumberofdocumentsrefusedfordiscrepanciesonfirstpresentation.MariaLivanosCattauiSecretaryGeneralInternationalChamberofCommerceParis,FranceDecember2002IntroductionAtitsMay2000meetingtheCommissiononBankingTechniqueandPracticeoftheInternationalChamberofCommerce(ICCBankingCommission)establishedataskforcetodocumentinternationalstandardbankingpracticefortheexaminationofdocumentspresentedunderdocumentarycreditsissuedsubjecttotheUniformCustomsandPracticeforDocumentaryCredits,theInternationalChamberofCommerce'sPublicationNo.500(UCP).TheinternationalstandardbankingpracticesdocumentedinthispublicationareconsistentwiththeUCPandtheOpinionsandDecisionsoftheICCBankingCommission.ThisdocumentdoesnotamendUCP.ItexplainshowthepracticesarticulatedintheUCParetobeappliedbydocumentarypractitioners.Itis,ofcourse,recognizedthatthelawinsomecountriesmaycompeladifferentpracticethanthatstatedhere.NosinglepublicationcananticipateallthetermsorthedocumentsthatmaybeusedinconnectionwithdocumentarycreditsortheirinterpretationundertheUCPandthestandardpracticeitreflects.However,thetaskforcepreparingthispublicationhasendeavouredtocovertermscommonlyseenonaday-to-daybasisandthedocumentsmostoftenpresentedunderdocumentarycredits.ItshouldbenotedthatanyterminadocumentarycreditwhichmodifiesoraffectstheapplicabilityofaprovisionoftheUCPmayalsohaveanimpactoninternationalstandardbankingpractice.Therefore,inconsideringthepracticesdescribedinthispublication,partiesmusttakeintoaccountanyterminadocumentarycreditthatexpresslyexcludesormodifiesaprovisioninanarticleoftheUCP.Thisprincipleisimplicitthroughoutthispublication,whetherornotstated,butitissometimesexpresslyrepeatedforpurposesofemphasisorforillustration.Whereexamplesaregiven,thesearesolelyforthepur...
