Article e1: Scope of the Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentations (“eUCP”)
a. “The eUCP supplements the Uniform Customs and Practice for Documentary Credits (2007 Revision, ICC Publication No. 600) (“UCP”) in order to accommodate presentation of electronic records alone or in combination with paper documents.”
Explanation:
This clause establishes that the eUCP is an addition to the existing rules outlined in UCP 600. It is designed to handle situations where electronic records are presented either by themselves or together with physical documents. Essentially, it extends the traditional UCP 600 framework to cover electronic documentation.
Example:
Suppose a documentary credit traditionally required paper documents for presentation. Under eUCP, a company could now present its shipping documents electronically via a secure online platform, as long as the credit allows for electronic submissions in conjunction with or instead of paper documents.
b. “The eUCP shall apply where the credit indicates that it is subject to the eUCP (“eUCP credit”).”
Explanation:
This clause specifies that the eUCP rules will be applicable only if the credit explicitly states that it is governed by the eUCP. This means that the use of eUCP is not automatic; it must be clearly indicated in the credit terms.
Example:
If a letter of credit (LC) includes a statement such as “Subject to eUCP Version 2.1,” then the provisions of eUCP apply. Without this indication, the presentation of electronic records would not be governed by eUCP.
c. “This version is Version 2.1. An eUCP credit must indicate the applicable version of the eUCP. If not indicated, it is subject to the latest version in effect on the date the eUCP credit is issued or, if made subject to the eUCP by an amendment accepted by the beneficiary, the date of that amendment.”
Explanation:
This clause addresses the specific version of eUCP that applies to the credit. If the version is not stated, the latest version at the time of issuance or amendment will apply. This ensures that all parties are aware of which rules govern the credit, avoiding confusion about which version of eUCP applies.
Example:
If an LC does not state “eUCP Version 2.1” but was issued on January 1, 2024, it would be governed by the latest eUCP version available as of that date. If an amendment indicating eUCP Version 2.1 was accepted on February 1, 2024, then Version 2.1 applies to the credit.
d. “An eUCP credit must indicate the physical location of the issuing bank. In addition, it must also indicate the physical location of any nominated bank and, if different to the nominated bank, the physical location of the confirming bank, if any, when such location is known to the issuing bank at the time of issuance. If the physical location of any nominated bank and/or confirming bank is not indicated in the credit, such bank must indicate its physical location to the beneficiary no later than the time of advising or confirming the credit or, in the case of a credit available with any bank, and where another bank willing to act on the nomination to honour or negotiate is not the advising or confirming bank, at the time of agreeing to act on its nomination.”
Explanation:
This clause requires that an eUCP credit specifies the physical locations of the issuing bank, nominated bank, and confirming bank. If the credit does not include these locations, the banks involved must provide this information to the beneficiary by certain deadlines. This requirement ensures transparency and clarity regarding the locations of the involved parties.
Example:
If an LC issued under eUCP does not state the location of the issuing bank, the issuing bank must inform the beneficiary of its location when advising or confirming the credit. Similarly, if the nominated bank or confirming bank’s locations are not mentioned in the credit, these banks must provide their locations to the beneficiary as soon as they confirm or advise the credit.