archivo20141120231628PM.pdf - Impact of the UCP 600 and measures taken by ICC XXIV Latin-American International Trade Congress Clace 2008 Lima Peru June

archivo20141120231628PM.pdf - Impact of the UCP 600 and...

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1 Impact of the UCP 600 and measures taken by ICC XXIV Latin-American International Trade Congress Clace 2008 Lima, Peru June 23 & 24, 2008 Gary Collyer Collyer Consulting LLP Technical Adviser to ICC 2 Impact of the UCP 600 Understanding UCP 600 and why UCP 500 was revised: box3 To reflect industry changes/practices – Transport, Insurance and Banking (documentary credit). box3 Need to review ICC Opinions, Decisions, DOCDEX cases and results of Court actions. box3 Need to consider incorporation of URR525, ISP98 and eUCP.
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3 Impact of the UCP 600 Corporate view of UCP 600: box3 Easier to read, follow and apply; box3 Clearer rules that leave little room for banks to “manipulate” or interpret to their liking; box3 Widespread adoption by banks together with application of the ISBP publication; box3 Need for applicant’s to grasp that the UCP 600 does not only benefit the beneficiary; box3 The content and structure of UCP 600 should encourage more usage of the documentary credit as a means of payment ; box3 An opportune time to review current practices and look for better documentary credit structures; box3 Use the impetus of UCP 600 to seek out new buyers and suppliers; and box3 A reduction in discrepancy rates has been seen in many countries. 4 Impact of the UCP 600 Bank view of UCP 600: box3 Easier to read, follow and apply; box3 Clearer rules that leave little room for issuing banks to “manipulate” or interpret to their liking; box3 Widespread adoption by banks together with application of the ISBP publication; box3 Increased usage of documentary credits already seen in markets such as Asia and Middle East. For example, China is now number 1 issuer of documentary credits globally and the Middle East is projecting increases in usage of around 15-20% per annum; box3 Banks are now promoting documentary credits as an offering whereas in the past it was not a ‘priority’ product; box3 An opportune time to review current practices and look for better documentary credit structures and guidelines; box3 A reduction in discrepancy rates has been seen in many countries.
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5 Impact of the UCP 600 My view of UCP 600: box3 To make the rules easier to read, follow and apply was the number 1 aim; box3 Clearer rules that leave little room for banks to “manipulate” or interpret to their liking; box3 With the UCP and ISBP publications issued at the same time and directly linked with each other, common standards are being achieved; box3 It is an opportune time for Corporates and Banks to review their current practices and look for better documentary credit structures and guidelines; box3 A reduction in discrepancy rates has been seen in many countries. However, the rules by themselves will not have a significant impact. Rules cannot stop a beneficiary shipping late, presenting late, etc.
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