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UniformCustomsandPracticeforDocumentaryCredits(1993Revision)
A.GENERALPROVISIONSANDDEFINITIONS
Article1.ApplicationofUCP
TheUniformCustomsandPracticeforDocumentaryCredits,1993Revision,ICCPublicationNo.500,shallapplytoalldocumentaryCredits(includingtotheextenttowhichtheymaybeapplicable,StandbyLetter(s)ofCredit)wheretheyareincorporatedintothetextoftheCredit.Theyarebindingonallpartiesthereto,unlessotherwiseexpresslystipulatedintheCredit.
Article2.MeaningofCredit
ForthepurposesoftheseArticles,theexpressions"DocumentaryCredit(s)"and"StandbyLetter(s)ofCredit"(hereinafterreferredtoas"Credit(s)"),rmeananyarrangement,howevernamedordescribed,wherebyabank(the"IssuingBank")actingattherequestandontheinstructionsofacustomer(the"Applicant")oronitsownbehalf,
i)istomakeapaymenttoortotheorderofathirdparty(the"Beneficiary"),oristoacceptandpaybillsofexchange(Draft(s))drawnbytheBeneficiary,or
ii)authorisesanotherbanktoeffectsuchpayment,ortoacceptandpaysuchbillsofexchange(Draft(s)),or
iii)authorisesanotherbanktonegotiate,againststipulateddocument(s),providedthatthetermsandconditionsoftheCreditarecompliedwith.ForthepurposesoftheseArticles,branchesofabankindifferentcountreisareconsideredanotherbank.
Article3.Creditsv.Contracts
a.Credits,bytheirnature,areseparatetransactionsfromthesalesorothercontract(s)onwhichtheymaybebasedandbanksareinnowayconcernedwithorboundbysuchcontract(s),evenifanyreferencewhatsoevertosuchcontract(s)isincludedintheCredit.Consequently,theundertakingofabanktopay,acceptandpayDraft(s)ornegotiateand/ortofulfilanyotherobligationundertheCredit,isnotsubjecttoclaimsordefencesbytheApplicantresultingfromhisrelationshipswiththeIssuingBankortheBeneficiary.
b.ABeneficiarycaninnocaseavailhimselfofthecontractualrelationshipsexistingbetweenthebanksorbetweentheApplicantandtheIssuingBank.
Article4.Documentsv.Goods/Services/Performances
InCreditoperationsallpartiesconcerneddealwithdocuments,andnotwithgoods,servicesand/orotherperformancestowhichthedocumentsmayrelate.
Article5.InstructionstoIssue/AmendCredits
a.InstructionsfortheissuanceofaCredit,theCredititself,instructionsforanamendmentthereto,andtheamendmentitself,mustbecompleteandprecise.Inordertoguardagainstconfusionandmisunderstanding,banksshoulddiscourageanyattempt
i)toincludeexcessivedetailintheCreditorinanyamendmentthereto;
ii)togiveinstructionstoissue,adviseorconfirmaCreditbyreferencetoaCreditpreviouslyissued(similarCredit)wheresuchpreviousCredithasbeensubjecttoacceptedamendment(s),and/orunacceptedamendment(s),
b.AllinstructionsfortheissuanceofaCreditandtheCredititselfand,whereapplicable,allinstructionsforanamendmenttheretoandtheamendmentitself,muststatepreciselythedocument(s)againstwhichpayment,acceptanceornegotiationistobemade.
B.FORMANDNOTIFICATIOINOFCREDITS
Article6.Revocablev.IrrevocableCredits
a.ACreditmaybeeither
i)revocable,or
ii)irrevocable.
b.TheCredit,therefore,shouldclearlyindicatewhetheritisrevocableorirrevocable.
c.IntheabsenceofsuchindicationtheCreditshallbedeemedtobeirrevocable.
Article7.AdvisingBank'sLiability
a.ACreditmaybeadvisedtoaBeneficiarythroughanotherbank(the"AdvisingBank")withoutengagementonthepartoftheAdvisingBank,butthatbank,ifitelectstoadvisetheCredit,shalltakereasonablecaretochecktheapparentauthenticityoftheCreditwhichitadvises.IfthebankelectsnottoadvisetheCredit,itmustsoinformtheIssuingBankwithoutdelay.
b.IftheAdvisingBankcannotestablishsuchapparentauthenticityitmustinform,withoutdelay,thebankfromwhichtheinstructionsappeartohavebeenreceivedthatithasbeenunabletoestablishtheauthenticityoftheCreditandifitelectsnonethelesstoadvisetheCredititmustinformtheBeneficiarythatithasnotbeenabletoestablishtheauthen,ticityoftheCredit.
Article8.RevocationofaCredit
a.ArevocableCreditmaybeamendedorcancelledbytheIssuingBankatanymomentandwithoutpriornoticetotheBeneficiary.
b.However,theIssuingBankmust:
i)reimburseanotherbankwithwhicharevocableCredithasbeenmadeavailableforsightpayment,acceptanceornegotiation-foranypayment,acceptanceornegotiationmadebysuchbank-priortoreceiptbyitofnoticeofamendmentorcancellation,againstdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit,
ii)reimburseanotherbankwithwhicharevocableCredithasbeenmadeavailablefordeferredpayment,ifsuchabankhas,priortoreceiptbyitofnoticeofamendmentorcancellation,takenupdocumentswhichappearontheirfacetobeincompliancewiththetermsandconditionsoftheCredit.
Article9.LiabilityofIssuingandConfirmingBanks
a.AnirrevocableCreditconstitutesadefiniteundertakingoftheIssuingBank,providedthatthestipulateddocumentsarepresentedtotheNominatedBankortotheIssuingBankandthatthetermsandconditionsoftheCreditarecompliedwith:
i)iftheCreditprovidesforsightpayment-topayatsight;
ii)iftheCreditprovidesfordeferredpayment-topayonthematuritydate(s)determinableinaccordancewiththestipulationsoftheCredit;
iii)iftheCreditprovidesforacceptance;
(a)bytheIssuingBank-toacceptDraft(s)drawnbytheBeneficiarqontheIssuingBankandpaythematmaturity,or
(b)byanotherdraweebank-toacceptandpayatmaturityDraft(s)drawnbytheBeneficiaryontheIssuingBankintheeventthedraweebankstipulatedintheCreditdoesnotacceptDraft(s)drawnonit,ortopayDraft(s)acceptedbutnotpaidbysuchdraweebankatmaturity;
iv)iftheCreditprovidesfornegotiation-topaywithoutrecoursetodrawersand/orbonafideholders,Draft(s)drawnbytheBeneficiaryand/ordocument(s)presentedundertheCredit.ACreditshouldnotbeissuedavailablebyDraft(s)ontheApplicant.IftheCreditneverthelesscallsforDraft(s)ontheApplicant,bankswillconsidersuchDraft(s)asanadditionaldocument(s).
b.AconfirmationofanirrevocableCreditbyanotherbank(the"ConfirminnBank")upontheauthorisationorrequestoftheIssuingBank,constitutesadefiniteundertakingoftheConfirmingBank,inadditiontothatoftheIssuingBank,providedthatthestipulateddocumentsarepresentedtotheConfirmingBankortoanyotherNominatedBankandthatthetermsandconditionsoftheCreditarecompliedwith:
i)iftheCreditprovidesforsightpayment-topayatsight;
ii)iftheCreditpr