Clause a
Clause: At least one original of each document stipulated in the credit must be presented.
Explanation: This clause mandates that for any document required by a letter of credit, at least one of the documents presented must be an original. This ensures authenticity and originality in the transaction.
Example: If a letter of credit requires an invoice, a bill of lading, and a packing list, at least one original of each of these documents must be submitted to fulfill the requirements.
Clause b
Clause: A bank shall treat as an original any document bearing an apparently original signature, mark, stamp, or label of the issuer of the document, unless the document itself indicates that it is not an original.
Explanation: This clause states that banks will consider a document as an original if it has what appears to be an original signature, mark, stamp, or label. However, if the document explicitly states it is not an original, the bank will not treat it as such.
Example: A bill of lading with an original shipping company’s stamp and signature will be treated as an original by the bank unless it has a note saying “Copy”.
Clause c
Clause: Unless a document indicates otherwise, a bank will also accept a document as original if it: i. appears to be written, typed, perforated or stamped by the document issuer’s hand; or ii. appears to be on the document issuer’s original stationery; or iii. states that it is original, unless the statement appears not to apply to the document presented.
Explanation: This clause details three additional criteria under which a document can be accepted as original. If it looks handwritten, typed, perforated, or stamped by the issuer, is on the issuer’s original stationery, or claims to be original (unless context suggests otherwise), it will be considered original by the bank.
Example: i. A certificate of origin typed and stamped by the Chamber of Commerce will be accepted as an original. ii. A commercial invoice on the supplier’s letterhead stationery will be accepted as original. iii. A document that states “This is an original document” will be accepted as such, provided there are no conflicting indications.
Clause d
Clause: If a credit requires presentation of copies of documents, presentation of either originals or copies is permitted.
Explanation: If a letter of credit asks for copies of documents, you can present either original documents or copies. The requirement for copies does not restrict you to only submitting copies; originals are also acceptable.
Example: If the credit requires a copy of the inspection certificate, you can submit either the original inspection certificate or a copy of it.
Clause e
Clause: If a credit requires presentation of multiple documents by using terms such as “in duplicate”, “in two fold” or “in two copies”, this will be satisfied by the presentation of at least one original and the remaining number in copies, except when the document itself indicates otherwise.
Explanation: When a credit demands multiple copies of a document (e.g., in duplicate or two copies), it is sufficient to present one original and the rest as copies unless the document specifically requires all to be originals.
Example: If the credit asks for a commercial invoice in duplicate, presenting one original commercial invoice and one copy will satisfy this requirement, unless the commercial invoice explicitly states that both must be originals.
By understanding each clause in UCP600 Article 17, parties involved in international trade can ensure they comply with documentary credit requirements, thus facilitating smoother and more efficient transactions.