Study On Evolution Of The Uniform Customs And Practice For Documentary Credits

Uniform Customs and Practice for Documentary Credits (referred to as UCP) whichpublished by the International Chamber of Commerce plays an important role ininternational trade. It is good for the buyers to know their obligations clearly and canprovide a lot of help to the practical aspects of the bank. Published since1933, UCP hasbeen amendment for6times, come to the latest version published at July1,2007"UniformCustoms and Practice for Documentary Credits" rule (referred to as UCP600)With so many modifications, in addition to the structure and meaning of theexpression language as accurate as possible and in order to avoid the deviation of thecountries in the interpretation and application scope, the biggest change is to adapt thetechnical advances in international trade, transportation, insurance, document processingand the tremendous changes in terms of settlement work.So study of the UCP series hasimportant significance both in theoretical and practical undoubtedly. Up to now UCP600has been used for seven years, domestic and foreign scholars have do lot of research aboutthem, but none of them is optimistic, most studies did not discourse the law or principlesmodified by the deep-seated reasons in detail inherent, only do some research about somespecific terms, and many studies did’t be analyzed with some specific cases. So, I believethat writing an article on these and many other questions in systematic, comprehensive andthorough analysis is very necessary. This article will base on the development of L/C andUCP, focusing on changes of UCP series and using economics theories to analysis andstudy, and eventually come to the conclusion regularity. I hope this paper can give a littlehelp both in international trade theory of practical operation and the fundamental role ofbanks, trading companies and all parties who need to understand and use the UCP. With theconstant evolution of the UCP and come with their own practical operation, I hope thispaper will help the Chinese enterprises and banks to protect their own interests ininternational trade.This paper is divided into six main chapters. The first chapter introduces thebackgrounds, significance and research status of topics. The second chapter describes thedevelopment of credit and their background and motivation as well as the evolution of theUCP in detail, then makes a briefly Comment. The third chapter uses sector1introducesthe deletions in the structure and the content changes that UCP500and UCP600did at thetime of the merger background, Chapter3, Section2in conjunction with several typicalcases mainly analyzed the four terms that frequently be modified between the UCP400,UCP500and UCP600, in the fourth we focused on the shortcomings andimperfections that still exist in UCP600, mainly do some research on fraud, delay paymentand money laundering. Chapter Five make a analysis and forecasting based on the trendsof the evolution of the UCP binding the conclusion that got from the study. Chapter VIsummarizes the evolution of UCP series that always follow the times. although the currentversion has achieved a high achievement, but as long as the letter of credit exist as animportant settlement, then UCP will surely continue to develop and improve.This article focuses on the time effectiveness and authority when selected thematerial, but also combine theory, practice and case to analysis the topic, including boththe specific terms of references, and the analysis of real cases, on one hand make the mainbody of the article become richer and more authentic, improve the readability of thearticle,on the other hand, the strongest evidence of the arguments in this paper enhance thelogic of the article.