UCP Rules and Daily Practice: Need for Additional Publication Due to Problems in Daily Practice
UCP 600 is the latest version of the rules that govern letters of credit transactions worldwide.
UCP 600 is prepared by International Chamber of Commerce’s (ICC) Commission on Banking Technique and Practice.
One problem with the UCP rules is that they are written in a general manner, which means that they are not detailed enough to cover the day-to-day practice.
International Chamber of Commerce’s (ICC) Commission on Banking Technique and Practice determined that another publication is need, in addition to UCP, to close the gap between general principals of UCP and the daily practice.
So ISBP was born.
ISBP – International Standard Banking Practices: First Edition
ISBP is the short and well-known name of the ICC publication No:645; International Standard Banking Practice for the Examination of Documents under Documentary Letters of Credit.
ISBP was approved by ICC banking commission in October 2002. After this approval, ISBP became an official ICC document.
ISBP was prepared in order to fill the gap between general principals of UCP and the daily practice.
UCP 500 was the latest version of the rules, which were governing the documentary letters of credit, at the time of ISBP was being prepared.
So first ISBP were constituted with the aim of explaining UCP 500 rules more explicitly.
Another aim of the drafting commission of the ISBP was to achieve internationally accepted standards for examination of documents under documentary letters of credit.
In order to succeed on this aim commission asked various ICC national committees and members to send checklists on how documents were examined in their organizations.
After 14 meetings and 4 different drafts, the ISBP was finally put into its final shape.
ISBP 2007: First Revision
UCP 500 is revised in 2007. UCP 600 replaced the previous rules. With the revision of the UCP, it has become necessary to renew the ISBP to bring it in line with the new letters of credit rules.
Full name of the second version of the ISBP is International Standard Banking Practice for the Examination of Documents under Documentary Credits, 2007 revision for UCP 600.
ICC publication number is 681.
ISBP 2007 consists of 10 chapters and consecutive 185 paragraphs. Headings of the ISBP 2007 chapters are given below.
Under each chapter, very detailed explanations can be found relating to the specific subject.
- PRELIMINARY CONSIDERATIONS
- GENERAL PRINCIPLES
- DRAFTS AND CALCULATION OF MATURITY DATE
- INVOICES
- TRANSPORT DOCUMENT COVERING AT LEAST TWO DIFFERENT MODES OF TRANSPORT
- BILL OF LADING
- CHARTER PARTY BILL OF LADING
- AIR TRANSPORT DOCUMENT
- ROAD, RAIL OR INLAND WATERWAY TRANSPORT DOCUMENTS
- INSURANCE DOCUMENT AND COVERAGE
- CERTIFICATES OF ORIGIN
ISBP 2013: Second Revision
As of July 2013 ISBP revised once again.
International Standard Banking Practice – ISBP 2013 is the latest and the most comprehensive guide to handling and examining trade documents under letters of credit.
ISBP 2013 published by ICC with the ICC Publication No. 745.
ICC defines the importance of new International Standard Banking Practice edition with these words
“An invaluable source of practical information for trade finance professionals and academics, this revised edition of ISBP provides readers with the latest ICC approved guidelines for all parties to documentary credits.”
ICC emphasize that ISBP is the best reference book in banking practices for international letters of credit documents subject to UCP 600.
Use of ISBP has significantly reduced international discrepancies for documentary credits and is regularly used by banking, logistics, insurance, legal and corporate professionals and academics worldwide.
It is a great companion book with UCP 600.
Who Can Use International Standard Banking Practice – ISBP 2013 in Documentary Credit Transactions?
All professionals, banking, logistics, insurance, legal and corporate professionals and academics worldwide, who deal with documentary credits can use International Standard Banking Practice – ISBP 2013 as a 1st reference book on their daily routine.
What is new with the International Standard Banking Practice – ISBP 2013 ?
Previous International Standard Banking Practice which is called ISBP 2007 published in year 2007 by ICC was covering below trade documents:
- DRAFTS
- INVOICES
- TRANSPORT DOCUMENT COVERING AT LEAST TWO DIFFERENT MODES OF TRANSPORT
- BILL OF LADING
- CHARTER PARTY BILL OF LADING
- AIR TRANSPORT DOCUMENT
- ROAD, RAIL OR INLAND WATERWAY TRANSPORT DOCUMENTS
- INSURANCE DOCUMENT AND COVERAGE
- CERTIFICATES OF ORIGIN
In addition to above stated documents International Standard Banking Practice – ISBP 2013 also covers following documents;
- PACKING LIST
- WEIGHT LIST
- BENEFICIARY CERTIFICATE
- NON-NEGOTIABLE SEA WAYBILLS
- ANALYSIS, INSPECTION, HEALTH, QUANTITY AND QUALITY CERTIFICATE
