Clause (a)
Clause: A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation.
Explanation: Banks must evaluate the presented documents strictly based on their content to ensure they comply with the terms and conditions of the credit. The examination is limited to the documents alone without considering external factors.
Example: If an issuing bank receives a set of documents that includes an invoice, bill of lading, and certificate of origin, it must check if these documents fulfill the requirements of the letter of credit. The bank cannot rely on external information or assumptions.
Clause (b)
Clause: A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if a presentation is complying. This period is not curtailed or otherwise affected by the occurrence on or after the date of presentation of any expiry date or last day for presentation.
Explanation: Each Banks have up to five banking days from the date of presentation to decide if the documents comply with the credit terms. This review period is not shortened by the credit’s expiry date or any other deadlines that occur after the presentation date. Counting of 5 banking day starts from the next banking day of presentation.
Example: If documents are presented to a bank on July 1st, the bank has until the close of business on July 8th (assuming no holidays or weekends) to complete its examination, regardless of whether the credit expires on July 2nd.
Clause (c)
Clause: A presentation including one or more original transport documents subject to articles 19, 20, 21, 22, 23, 24 or 25 must be made by or on behalf of the beneficiary not later than 21 calendar days after the date of shipment as described in these rules, but in any event not later than the expiry date of the credit.
Explanation: When a presentation includes original transport documents, it must be made within 21 calendar days after the shipment date, but also not beyond the credit’s expiry date.
Example: If goods are shipped on July 1st, the latest date for presenting the documents, including the bill of lading, is July 22nd, provided the credit does not expire before this date.
Clause (d)
Clause: Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.
Explanation: Data in the documents does not have to match exactly but should not contradict the data in other documents or the credit terms.
Example: If the credit states “blue shirts” and the invoice describes the goods as “navy blue shirts,” this is acceptable as long as there is no contradiction in other documents. However, if invoice describes as “navy blue shirts” but in certificate of origin goods description is mentioned as “green shirts” then it will be a discrepancy.
Clause (e)
Clause: In documents other than the commercial invoice, the description of the goods, services or performance, if stated, may be in general terms not conflicting with their description in the credit.
Explanation: Descriptions of goods or services in documents other than the commercial invoice can be general, provided they do not conflict with the credit’s description.
Example: If the credit specifies “100% cotton shirts,” the packing list can describe the goods as “cotton shirts” or “shirts”.
Clause (f)
Clause: If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfil the function of the required document and otherwise complies with sub-article 14 (d).
Explanation: If the credit does not specify the issuer or data content of a required document, banks will accept the document as long as it fulfills its intended function and does not conflict with sub-article 14(d).
Example: If a credit requires a “certificate of inspection” without specifying who should issue it, a certificate issued by any party will be accepted if it serves the inspection function and does not conflict with other documents.
Clause (g)
Clause: A document presented but not required by the credit will be disregarded and may be returned to the presenter.
Explanation: Any documents that are not required by the credit terms will be ignored and can be returned to the presenter.
Example: If a beneficiary submits an additional certificate of quality that is not stipulated in the credit, the bank will disregard it.
Clause (h)
Clause: If a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated and will disregard it.
Explanation: Conditions in the credit that do not specify which document should show compliance are treated as if they do not exist.
Example: If a credit states that “shipment must be made on a vessel under 10 years old” but does not specify that this must be stated on the bill of lading or any other document, the bank will disregard this condition.
Clause (i)
Clause: A document may be dated prior to the issuance date of the credit, but must not be dated later than its date of presentation.
Explanation: Documents can have dates earlier than the credit issuance date but cannot be dated after the presentation date.
Example: A bill of lading dated June 1st is acceptable for a credit issued on June 10th. Next scenario, A bill of lading dated 12th June and document presented on 11th June will be discrepant.
Clause (j)
Clause: When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in the credit or in any other stipulated document, but must be within the same country as the respective addresses mentioned in the credit. Contact details (telefax, telephone, email and the like) stated as part of the beneficiary’s and the applicant’s address will be disregarded. However, when the address and contact details of the applicant appear as part of the consignee or notify party details on a transport document subject to articles 19, 20, 21, 22, 23, 24 or 25, they must be as stated in the credit.
Explanation: Addresses in documents other than transport documents can differ from those in the credit as long as they are within the same country. Contact details like phone numbers and emails are ignored unless they are part of consignee or notify party details in transport documents.
Example: If the credit specifies the applicant’s address as “123 Main St, New York,” and an invoice states “456 Elm St, New York,” it is acceptable as both addresses are in the same country. Next scenario, if the credit specifies the consignee address as “123 Main St, New York,” and bill of lading states consignee address as “456 Elm St, New York,” it is Discrepant.
Clause (k)
Clause: The shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit.
Explanation: The shipper or consignor mentioned in any document does not have to be the beneficiary.
Example: If a beneficiary is “ABC Enterprise” as per LC, but the bill of lading shows the shipper as a “XYZ Enterprise”, this is acceptable.
Clause (l)
Clause: A transport document may be issued by any party other than a carrier, owner, master or charterer provided that the transport document meets the requirements of articles 19, 20, 21, 22, 23 or 24 of these rules.
Explanation: Transport documents can be issued by parties other than the carrier, owner, master, or charterer as long as they comply with the relevant UCP600 articles.
Example: An agent of the carrier issues a bill of lading, which is acceptable as long as it meets the criteria set out in articles 19-24 of UCP600. Check out explanations on these articles, how agent can sign a transport documents and how capacity to be mentioned.