Article e3: Definitions
Clause a. Where the following terms are used in the UCP, for the purpose of applying the UCP to an electronic record presented under an eUCP credit, the term:
i. “Appear on their face and the like shall apply to examination of the data content of an electronic record.”
Explanation: This clause means that when the UCP rules mention terms like “appear on their face,” it refers to examining the actual data content of an electronic record, just as you would inspect a paper document.
Example: If an electronic invoice is presented under an eUCP credit, “appear on their face” would involve checking the data within the electronic invoice to ensure it meets the terms of the credit, similar to verifying a paper invoice.
ii. “Document shall include an electronic record.”
Explanation: In this context, the term “document” isn’t limited to physical papers but also covers electronic records.
Example: An electronic bill of lading is considered a “document” under eUCP, just like a traditional paper bill of lading would be.
iii. “Place for presentation of an electronic record means an electronic address of a data processing system.”
Explanation: The “place for presentation” for electronic records is not a physical location but an electronic address where the data is sent.
Example: If a bank requires an electronic invoice to be sent to its email address or a specific online portal, that email address or portal is the “place for presentation.”
iv. “Presenter means the beneficiary, or any party acting on behalf of the beneficiary who makes a presentation to a nominated bank, confirming bank, if any, or to the issuing bank directly.”
Explanation: The “presenter” is the individual or entity, including the beneficiary or their representative, who submits the electronic record to the bank.
Example: If a company (the beneficiary) submits an electronic shipping document to its bank, the company or its representative is considered the “presenter.”
v. “Sign and the like shall include an electronic signature.”
Explanation: The act of signing a document also includes using an electronic signature in the context of electronic records.
Example: An electronic signature on an electronic letter of credit serves the same purpose as a handwritten signature on a paper letter of credit.
vi. “Superimposed, notation or stamped means data content whose supplementary character is apparent in an electronic record.”
Explanation: This refers to any additional data or markings that are visible and can be identified within an electronic record.
Example: An electronic record might include a digital watermark or annotation that clearly indicates additional information, similar to a stamped note on a paper document.
Clause b. The following terms used in the eUCP shall have the following meaning:
i. “Data corruption means any distortion or loss of data that renders the electronic record, as it was presented, unreadable in whole or in part.”
Explanation: Data corruption refers to errors or alterations that make the electronic record partially or completely unreadable.
Example: If an electronic document is transmitted but gets corrupted during transfer, causing some of its data to be unreadable, this would be considered data corruption.
ii. “Data processing system means a computerized or an electronic or any other automated means used to process and manipulate data, initiate an action or respond to data messages or performances in whole or in part.”
Explanation: This term encompasses any system, whether it’s a computer, electronic device, or automated system, used to handle and act upon data.
Example: An electronic banking system that processes electronic invoices and initiates payments is a data processing system.
iii. “Electronic record, including an electronic transferable record, means data created, generated, sent, communicated, received or stored by electronic means, including, where appropriate, all information logically associated with or otherwise linked together so as to become part of the record, whether generated contemporaneously or not, that is: a) capable of being authenticated as to the apparent identity of a sender and the apparent source of the data contained in it, and as to whether it has remained complete and unaltered, and b) capable of being examined for compliance with the terms and conditions of the eUCP credit.”
Explanation: An electronic record is any data created or managed electronically, which must be authentic and complete, and can be reviewed to ensure it meets eUCP credit terms.
Example: An electronic bill of lading must be capable of being verified for authenticity and checked to confirm it adheres to the terms of the credit.
iv. “Electronic signature means a data process attached to or logically associated with an electronic record and executed or adopted by a person in order to identify that person and to indicate that person’s authentication of the electronic record.”
Explanation: An electronic signature is a digital method used to authenticate and verify the identity of the person signing the electronic record.
Example: A scanned image of a handwritten signature on a PDF or a digital signature created using a secure signing platform are both examples of electronic signatures.
v. “Electronic transferable record means an electronic record that contains the information that would be required in the equivalent paper document, such as a negotiable bill of lading or an assignable insurance document.”
Explanation: An electronic transferable record holds the same information as a traditional paper document and can be transferred or assigned electronically.
Example: An electronic bill of lading that serves the same function as a traditional paper bill of lading is an example of an electronic transferable record.
vi. “Format means the data organization in which the electronic record is expressed or to which it refers.”
Explanation: The “format” refers to the structure or organization of the data in the electronic record.
Example: A spreadsheet with rows and columns is a format for organizing data, just as a PDF document format is another way of structuring electronic records.
vii. “Paper document means a document in a paper form.”
Explanation: This simply refers to traditional, physical documents as opposed to electronic ones.
Example: A physical shipping receipt or a paper-based invoice is a paper document.
viii. “Received means when an electronic record enters a data processing system, at the place for presentation indicated in the eUCP credit, in a format capable of being accepted by that system. Any acknowledgment of receipt generated by that system does not imply that the electronic record has been viewed, examined, accepted or refused under an eUCP credit.”
Explanation: “Received” refers to the point when an electronic record arrives at the specified electronic address and in a format that the system can handle. An acknowledgment of receipt doesn’t mean the record has been reviewed or accepted.
Example: If an electronic document is sent to a bank’s electronic portal and the system confirms receipt, it simply means the document was delivered but not necessarily processed or accepted.
ix. “Re-present or re-presented means to substitute or replace an electronic record already presented.”
Explanation: This term means replacing or updating an electronic record that has already been submitted.
Example: If an initial electronic invoice was rejected due to errors, resubmitting a corrected version of that invoice would be considered re-presenting the record.