Credit Trading Bank Single-trial Rule

Banks of examining documents in the L/C transactions including The Issuing Bank, The Confirming Bank, The Negotiating Bank and The Advising bank of confirming / negotiating by authorization or nomination , however , The Silent Confirmation Bank, The Advising bank of confirming / negotiating by no authorization or nomination and The Applicant are not the eligible subject of examining documents under The Uniform Customs. Banks of examining documents ought to have abundant experience in examining documents of L/C, to know ordinary customs related to the L/C and trade, but not including any particular trade or commercial customs. Banks of examining documents ought to perform obligations of examining documents with reasonable care, but Banks of examining documents are not compelled to obey the principle of good faith because the principle of good faith may destroy the principle of independence and the principle of document transactions which are the base of the L/C.Banks of examining documents mast obey the substantive rule and the procedure rule embodied in the international customs in the L/C transactions. The major content of the substantive rule of examining documents is the standard of examining documents. The traditional standard of examining documents include four standards of examining documents. The first, The Mirror Image standard. The standard require the documents provided by the beneficiary should be examined like mirror according to the words of the L/C. The standard is the reflection of absolute-strict-rulesim in law, have feature of mechanization and absolution, is very unfair to the beneficiary, therefore, it should not be call for. The second, The Substantive Compliance Standard.The standard refers to the standard which although there are some differences between the requests of L/C and the documents provided , banks still deem documents are in compliance with the terms and conditions of the Credit, as long as banks believe that the differences are not substantive and it is not harmful for banks to take up the documents. The standard is the reflection of absolute liberty-adjudicationism in the theory of Credit. The standard can achieve single justice by the way that banks look at the basic transactions across the surface of the Credit and then determine the documents whether or not are substantively compliance...