Exporters would be consulted by banks on presenting L/C docs. Once L/C is issued, ECs have the permission to export foreign currency. Importers would be consulted by banks on terms of contract to open a guaranteed L/C. Importers would be issued a margin exemption limit to open L/C by banks.
Others Provisions General Provisions and Definitions Liabilities and Responsibilities Examination of Documents Documents 18-28 14-17 6-13 29-39 1-5 16 MAIN CONTENT Outline UCP-DC
Article 1 - 5 General Provisions and Definitions 17 01 Application of UCP600 02 Definitions 03 Interpretations 04 Credit v Contracts 05 Documents v. Goods, Services or Performance
18 BILLION DEAL Durianimex Vietnam (durian seller): Beneficiary , or seller, or exporter, or money receiver Exotic fruit Corp Norway (durian buyer): Applicant , one who request the issue of credit, payer
19 Examples of express indication: Examples of an exclusion or modification to a rule: Buyer Issuing Bank issues L/C request L/C Applicable when the credit clearly indicates that it follows these rules (Citigroup.com, 2019) Article 1 - The application of UCP 600
20 (Citigroup.com, 2019) in Vietnam in Norway “ ADVISE" => Notice, Inform, Send L/C Documents to Durianimex Vietnam (Beneficiary) Nominated Bank : Banks where credit is available , agree to pay money for Durianimex, accept the documents sent by Durianimex hey, can you confirm this L/C and inform the seller? Article 2 - Definitions
Presentation Presenter ✔ Delivery of documents to issuing bank or nominated bank; or ✔ The documents so delivered 21 Party that makes a presentation Beneficiary Presenter Presenter Presen -tation Presen -tation Nominated Bank Issuing Bank
Terms & conditions of the credit International standard banking practice Applicable UCP provisions Complying Presentation 22 Presentation in accordance with (following)
Honour Negotiation ✔ The purchase of drafts and/or documents under a complying presentation. 23 maturity : the time when an investment or insurance product becomes ready to be paid deferred payment : A loan arrangement in which the borrower is allowed to start making payments at some specified time in the future draf : a written order for money to be paid by a bank pay at sight : pay immediately bill of exchange : a document , used especially in international trade , that orders a person or organization to pay a particular amount of money at a particular time for goods or services
For determining maturity date, the words “from” and “after” exclude the date mentioned For determining a period of shipment, the words “from” and “after” have different meanings – “From” includes the date mentioned – “After” excludes the date mentioned Article 3 - Interpretations 24
L/C is a separate transaction should discourage Banks from the contract it is based on 25 any attempt to include contract as integral/essential part of L/C Article 4 - Credits v. Contracts (Citigroup.com, 2019)
26 Banks deal with documents and not with goods, services or performances to which the documents may relate.
- Fall '17