eUCP

eUCP Version 2.1 Article e13: Additional Disclaimer of Liability for Electronic Records – CDCS Guide

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Article e13: Additional Disclaimer of Liability for Presentation of Electronic Records under eUCP

a. By satisfying itself as to the apparent authenticity of an electronic record, a bank assumes no liability for the identity of the sender, source of the information, or its complete and unaltered character other than that which is apparent in the electronic record received by the use of a data processing system for the receipt, authentication, and identification of electronic records.

Explanation: This clause outlines that a bank is responsible for verifying the apparent authenticity of an electronic record it receives. However, the bank’s responsibility does not extend beyond the visible aspects of the record. In other words, the bank does not need to verify the identity of the sender, the origin of the information, or ensure that the electronic record has not been altered beyond what is apparent in the record itself. The bank’s responsibility is limited to what it can see and verify using its data processing systems.

Example: Suppose a bank receives an electronic invoice from a supplier. The bank checks the invoice’s authenticity based on its content and the sender’s details visible in the record. However, the bank does not investigate the actual identity of the person who sent the invoice or verify if the invoice was altered before reaching them. As long as the invoice appears authentic within their data processing system, the bank accepts it at face value and assumes no further liability regarding the sender’s identity or the record’s integrity.

b. A bank assumes no liability or responsibility for the consequences arising out of the unavailability of a data processing system other than its own.

Explanation: This clause states that a bank is not liable for issues or consequences that arise from the unavailability or malfunction of data processing systems that are not under its control. In essence, the bank is only responsible for its own systems and cannot be held accountable for problems caused by systems operated by other entities.

Example: Imagine a situation where a bank is supposed to process an electronic record from a transaction partner. If the transaction partner’s data processing system is down and the record cannot be transmitted or processed as expected, the bank is not responsible for this issue. The bank’s liability is confined to its own systems and operations. If the bank’s system is functioning properly, it cannot be held accountable for failures or issues that occur because of the partner’s system being unavailable.

eUCP Version 2.1 Article e12: Handling Data Corruption of Electronic Records – CDCS Guide

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Article e12: Data Corruption of an Electronic Record

a. “If an electronic record that has been received by a nominated bank acting on its nomination or not, confirming bank, if any, or the issuing bank, appears to have been affected by a data corruption, the bank may inform the presenter and may request it to be re-presented.”

Explanation: This clause addresses the scenario where an electronic record, such as a digital document related to a letter of credit, becomes corrupted or otherwise compromised during its transmission or receipt. If the nominated bank, confirming bank, or issuing bank detects such data corruption, they have the right to notify the party who presented the record. The bank can then request that the presenter provide a new, uncorrupted version of the electronic record.

Example: Imagine a nominated bank receives an electronic bill of lading from the presenter, but upon review, it is found that some data is garbled due to a transmission error. The bank can notify the presenter of this issue and ask for a fresh copy of the electronic bill of lading to be sent. This ensures that the bank can process the document correctly and without errors.

b. If a bank makes such a request:

i. “the time for examination is suspended and resumes when the electronic record is re-presented;”

Explanation: When a bank requests a re-presentation of an electronic record due to data corruption, the period allocated for examining the document is temporarily halted. This means the bank does not count the time spent waiting for the re-presented record against the presentation deadline. The examination time clock only resumes once the corrected document is received.

Example: Suppose the original electronic record was supposed to be examined within 10 days. If the bank requests a re-presentation on the 5th day due to data corruption, the remaining 5 days for examination will pause until the new record is received. If the new record arrives after 3 days, the bank then has 5 days from the receipt of the new document to complete its examination.

ii. “if the nominated bank is not a confirming bank, it must provide any confirming bank and the issuing bank with notice of the request for the electronic record to be re-presented and inform it of the suspension;”

Explanation: If the nominated bank is not acting as a confirming bank, it is responsible for informing both any confirming bank involved and the issuing bank about the request for re-presentation and the suspension of the examination period. This ensures all relevant parties are aware of the situation and any changes to the timeline.

Example: If a nominated bank discovers data corruption and requests a re-presentation of the document, and it is not a confirming bank, it must notify the confirming bank and the issuing bank about the corruption issue and the resulting pause in the examination period. This keeps everyone in the loop and avoids confusion or delays.

iii. “if the same electronic record is not re-presented within 30 calendar days, or on or before the expiry date and/or last day for presentation, whichever occurs first, the bank may treat the electronic record as not presented.”

Explanation: Should the presenter fail to provide the corrected electronic record within 30 calendar days or before the expiration of the presentation deadline (whichever is sooner), the bank has the right to consider the electronic record as not having been presented. This means that the record would be treated as though it was never submitted, potentially affecting the processing of the related transaction.

Example: If the presentation deadline for a document is 15 days, but the presenter fails to send the corrected electronic record within this period or within 30 days of the original request, the bank can disregard the document as though it was never received. This ensures that the transaction remains on schedule and maintains the integrity of the process.

eUCP Version 2.1 Article e6: Presentation – Detailed Explanation and Examples – CDCS Guide

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Article e6: Presentation

a. i. An eUCP credit must indicate a place for presentation of electronic records.

Explanation: An eUCP credit must specify a location where electronic records can be presented. This ensures that there is a clear and designated place for the electronic documentation to be submitted, facilitating the process of review and acceptance by the relevant parties.

Example: If a credit requires the presentation of electronic records to be made through an online portal, the credit must specify this portal’s address or details in the terms of the credit.

ii. An eUCP credit requiring or allowing presentation of both electronic records and paper documents must, in addition to the place for presentation of the electronic records, also indicate a place for presentation of the paper documents.

Explanation: When a credit involves both electronic and paper documents, it must clearly outline where each type of document should be presented. This avoids confusion and ensures that both types of documents are submitted to the correct locations.

Example: A credit might require electronic records to be submitted through an email system while paper documents need to be sent to a physical address. The credit must specify both the email address and the physical address.

b. Electronic records may be presented separately and need not be presented at the same time.

Explanation: Electronic records do not have to be submitted all at once. They can be presented in parts or at different times, offering flexibility in the submission process.

Example: If a credit requires the submission of multiple electronic documents, they can be sent in separate emails or file uploads over a period of time, as long as they are within the allowed timeframe.

c. i. When one or more electronic records are presented alone or in combination with paper documents, the presenter is responsible for providing a notice of completeness to the nominated bank, confirming bank, if any, or to the issuing bank, where a presentation is made directly. The receipt of the notice of completeness will act as notification that the presentation is complete and that the period for examination of the presentation is to commence.

Explanation: When submitting electronic records, either alone or with paper documents, the presenter must issue a notice of completeness. This notice informs the receiving bank that the submission is complete and starts the clock on the bank’s examination period.

Example: If you submit electronic records to a bank and also send paper documents, you need to send a notice of completeness to the bank to confirm that all required documents have been submitted and to start the review period.

ii. The notice of completeness may be given as an electronic record or paper document and must identify the eUCP credit to which it relates.

Explanation: The notice of completeness can be provided either electronically or on paper and must clearly reference the eUCP credit it pertains to, ensuring it is linked to the correct transaction.

Example: You could send an electronic notice via email or a paper notice via postal service, making sure to include the eUCP credit number or details.

iii. Presentation is deemed not to have been made if the notice of completeness is not received.

Explanation: If the notice of completeness is not sent or received, the presentation is considered incomplete. This means the bank has not officially received the presentation and it will not be processed.

Example: If you fail to send a notice of completeness after submitting electronic records, the bank will not consider your submission valid or complete.

iv. When a nominated bank, whether acting on its nomination or not, forwards or makes available electronic records to a confirming bank or issuing bank, a notice of completeness need not be sent.

Explanation: If a nominated bank forwards electronic records to another bank (confirming or issuing bank), it is not required to send a separate notice of completeness.

Example: If a nominated bank receives electronic records and sends them to the issuing bank, it does not need to provide a notice of completeness to the issuing bank separately.

d. i. Each presentation of an electronic record under an eUCP credit must identify the eUCP credit under which it is presented. This may be by specific reference thereto in the electronic record itself, or in metadata attached or superimposed thereto, or by identification in the covering letter or schedule that accompanies the presentation.

Explanation: Every electronic record must clearly identify the eUCP credit it relates to. This can be done directly in the record, through metadata, or in accompanying documents.

Example: An electronic invoice should include a reference to the eUCP credit number in its content, metadata, or in a cover letter to ensure it is correctly matched with the credit.

ii. Any presentation of an electronic record not so identified may be treated as not received.

Explanation: If an electronic record does not include proper identification of the eUCP credit, it might be considered as not having been received by the bank.

Example: If an electronic document lacks the eUCP credit reference and is sent to the bank, the bank might ignore or reject it because it cannot be properly linked to the credit.

e. i. If the bank to which presentation is to be made is open but its system is unable to receive a transmitted electronic record on the stipulated expiry date and/or the last day for presentation, as the case may be, the bank will be deemed to be closed and the expiry date and/or last day for presentation shall be extended to the next banking day on which such bank is able to receive an electronic record.

Explanation: If a bank is operational but unable to process electronic records on the deadline date, the deadline is extended to the next business day when the bank can receive the records.

Example: If the system failure occurs on the deadline day, and the bank’s system is back online the next day, the deadline for submitting electronic records is extended to that day.

ii. In this event, the nominated bank must provide the confirming bank or issuing bank, if any, with a statement on its covering schedule that the presentation of electronic records was made within the time limits extended in accordance with sub-article e6 (e) (i).

Explanation: The nominated bank must inform the confirming or issuing bank that the presentation was made within the extended time limit due to the system issue.

Example: If the presentation deadline is extended, the nominated bank should include a statement in its covering documentation indicating that the records were submitted within the extended timeframe.

iii. If the only electronic record remaining to be presented is the notice of completeness, it may be given by telecommunication or by paper document and will be deemed timely, provided that it is sent before the bank is able to receive an electronic record.

Explanation: If the only document pending is the notice of completeness, it can be sent by telecommunication or paper and will be considered timely if sent before the bank’s system is back online.

Example: If a notice of completeness is the last document required and the bank’s system was down, sending it by fax or postal mail before the system is operational will still meet the deadline requirements.

f. An electronic record that cannot be authenticated is deemed not to have been presented.

Explanation: If an electronic record cannot be verified or authenticated, it will be considered as if it was never presented.

Example: If an electronic document is corrupted or its authenticity cannot be confirmed due to technical issues, it will be regarded as not having been submitted.

eUCP Version 2.1 Article e2: Relationship of the eUCP to the UCP – CDCS Guide

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Article e2: Relationship of the eUCP to the UCP

a. “An eUCP credit is also subject to the UCP without express incorporation of the UCP.”

Explanation:
This clause establishes that an electronic letter of credit (eUCP) automatically adheres to the Uniform Customs and Practice for Documentary Credits (UCP) rules, even if the UCP is not explicitly mentioned in the terms of the eUCP. Essentially, if an eUCP credit does not specify otherwise, it is implicitly governed by the UCP.

Example:
Imagine a company, ABC Corp., issues an eUCP credit to XYZ Ltd. without explicitly stating that UCP rules apply. Despite the absence of an explicit reference, the UCP rules still govern the credit’s execution. For instance, if the eUCP credit requires a specific form of documentary evidence, the rules for handling discrepancies, payment, and other relevant aspects will follow UCP guidelines by default.

b. “Where the eUCP applies, its provisions shall prevail to the extent that they would produce a result different from the application of the UCP.”

Explanation:
This clause clarifies that when both eUCP and UCP are applicable, the eUCP rules take precedence if they lead to a different outcome compared to the UCP. This ensures that the unique aspects of electronic documentation and processes under eUCP are prioritized over the traditional UCP rules when discrepancies arise.

Example:
Suppose an eUCP credit specifies that digital signatures are sufficient for document authentication, while the UCP requires physical signatures. In this case, the eUCP provision for digital signatures will prevail, overriding the UCP’s requirement for physical signatures. This prevents conflicts between electronic and traditional practices and ensures consistency with eUCP standards.

c. “If an eUCP credit allows the beneficiary to choose between presentation of paper documents or electronic records and it chooses to present only paper documents, the UCP alone shall apply to that presentation. If only paper documents are permitted under an eUCP credit, the UCP alone shall apply.”

Explanation:
This clause addresses scenarios where an eUCP credit provides the beneficiary with the option to submit either paper or electronic documents. If the beneficiary opts to present paper documents, only the UCP rules apply to that presentation. Similarly, if the eUCP credit specifies that only paper documents are acceptable, then the UCP governs the entire transaction. This provision ensures clarity in situations where traditional document handling rules are preferred over electronic processes.

Example:
Consider a letter of credit under eUCP where the beneficiary can choose between submitting digital invoices or paper invoices. If the beneficiary decides to present paper invoices, the transaction will follow UCP rules for handling paper documents. If the credit strictly allows only paper documents and no digital submissions, the UCP rules will govern every aspect of the credit.

eUCP Version 2 Article e1: Scope and Application Explained – CDCS Guide

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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.