The New Rule For Documentary Credits

The Uniform Customs and Practice for Documentary Credits (hereinafter referred to as UCP) constituted by International Commercial Commission occupies an important place in the practice of international trade. It plays a major rule in regulating actions of buyers and sellers and banking practice. It is the law which banking community,the Bar and business community consciously comply with. In order to guide the development of letters of credit, International Commercial Commission modifies it almost every decade. Because the previous version cannot adapt international trade and the development of information, lawsuit cases of letters of credit increase sharply in recent years. From 2002, International Commerce Commission began to modify the previous version. Unanimous approval of the draft was given on October ,2006.The new version (hereinafter referred to as UCP600) will be used by banks and traders across the world from July l,2007,and it is referred to as the UCP 600.The new 600 version is more accurate, more clearly, easier to understand, easier to operate. The new version will have great influence on import & export enterprises, banks, shipping companies, insurance businesses. So the research on UCP 600 is very important. But the research of new UCP 600 is not many. Current documents and analysis are a little simple, failed to clarify reasons for modification. Or start simply from specific conditions, and a lot of cases should not be adopted to carry out. Therefore it is necessary to write a thesis on these issues. This thesis focuses on new changes of UCP600 and the impact of the parties, trying to provide enough theory basis for the practice, which could make corporations and banks completely mastered the UCP600 within less time, adjusted and developed its practical operation according to the latest revision, SO the interest of banks and corporations can be protected effect.This thesis is divided into 6 chapters. Chapter I summarizes the constitution, development and historical five version of UCP and expound its legal status briefly. Chapter II introduces the background of UCP600 and additions and deletions for the original version on structure and modifications on content. Chapter III analyzes the two important changes of UCP600 through different cases, section I analyzes the removal of revocable letters of credit pointing out that this change is adaptable to the development of letters of credit, section II is about the changes of documents process, including the time for document process, the standard of document process and the process for documents rejected Chapter IV introduces the influence of the new version for the parties - applicants, beneficiaries and banks, and the responses of them by three sections. Chapter V analyzes briefly the existing problems of UCP 600-fraud and deferred payment letters of credit and money laundering. Chapter VI is the conclusion reviewed the article content briefly, that is the new version is successful, but it is still needed to be perfected.Paying much attention to novelty and authority in selection of materials, this article tells from law to practice. Both regulations of laws and incitement of cases enrich the content of this article and highlight the argumentation.