Study On Complying Presentation And Discrepancy Under Documentary Credits

The revision of < The Uniform Customs and Practice for Documentary Credits > (UCP600) published by ICC has been formally implemented since July 1 2007 which makes the standard and principle for examination of documents change a lot, but with complication of international trade situation and development of bank, transportation, insurance etc, the related parties of the L/C came across many new problems in practice. What's more, because of high fee, complex formalities, prevailing fraud, especially excessive discrepancies which makes approximately 70% of documents presented under L/C were being rejected on first presentation, the L/C's utilization is declining dramatically. When using L/C,examining documents is very important. Therefore, studying the principle of complying presentation, standard for examination,related regulations,the reasons for discrepancy and methods of avoiding it to present documents on time is very important. It is significant both in theory and practice.This thesis discusses the definition of Complying Presentation (UCP600 Art. 2) ,taking the principles of Complying Presentation, Standard for Examination of Documents ,discrepancy's issues as the main objects of this research., approaching these several common standards from legal theories'and business practices'angles. The author believes that the usages of L/C have absorbed a lot of legal matters, so the issue of L/C should be a combination problem which includes law and business practice. To insure complying presentation and dispose the discrepant documents well, the related parties must comprehend the standards deeply and grasp the way of development accurately.This article uses comparative, case and qualitative analysis to carry on a fuller elaboration. First, examining the reasons why the use of L/C is in difficult position. Second, expatiate the principles based on UCP600 of complying presentation and explain some regulations of it. Third, make a summary of complying presentation, combining cases with comparison of prevailing five standards, and then put forward a new criterion built by UCP600.Fourth, Do a research of discrepancy from the views of Foreign Trader, Merchandiser and Document Operator. Analyze the reasons and consequences of discrepancy. Emphasize prevention and disposal methods. Finally, draw some conclusions.