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30 views17 pages

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Uploaded by

avea
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Overview of Articles Article 1 - Application + ALC has to specifically mention that it is under UCP. You can specifically exclude a particular article of UCP - ‘article 31a excluded’ or any! similar wordings Article 2 — Definitions a Article 3 - Interpretations + Acredit is irrevocable even if it does not specifically mention it (OAV Rell Articles Signature can be in any form Certification can be in any form Branches of same bank in different countries are treated as different banks Overview of Articles Article 3 —- Continued.. + First Half = Ist- 15th + Second Half = 16th - end of month + Beginning = 1 “joe + Middle = 11-208 + End =21*—end of month siicte 485 + Acredit is separate from the contract Overview of + Banks deal with decuments related to the Articles goods and not with the goods itself BE iicies + Acredit must state how it is available Overview of Atticle7&8 = * Articles + Responsibilities of Issuing and confirming banks BE icies + Advising of credit Overview of Article 10 ‘ Articles + Acredit can neither be amended or cancelled without the agreement of the issuing bank, confirming bank and the = beneficiary Article 12 * Just because a bank has been nominated in LC does not mean it is bound to act on the nomination Article 13 The issuing bank must provide the reimbursing bank with reimbursing authorization, but is not relieved of its responsibilities =] Overview of Articles Article 14 + Banks get max 5 working days following the date of presentation to check all documents + Transport documents should be presented Overview of Articles not later than 21 days after the date of shipment or within the expiry of the LC whichever is earlier. Article 14 Continued.. Data in a document need not be identical to, but must not conflict with data in other documents . Overview of Articles Commercial Invoice - exact reciprocating description, other documents should not conflict Article 14 Continued.. + Condition without supporting document - banks will ignore Overview of Articles + Addresses of applicants and beneficiaries — may not be same as that of LC but should be the same country as mentioned in the LC a=] Article 16 ER tance refuse to honor or negotiate finding a discrepant document then it must send a notice Overview of Articles Options- * Hold for further instruction Hold till receiving waiver from applicant Return documents Acting on previous instructions Article 17 GE 220051 one original of each document Article 18 Overview of Commercial Invoice; Articles + Issued by beneficiary + To the applicant + Same currency of the LC + May or may not be signed Article 19 - 25 ME vcicate name of carrer, goods shipped on board, chartered party B/L not acceptable Been + Trans-shipment - unloading from one vessel /Aqitatos and reloading to another vessel + rail transport document marked duplicate will be accepted as original Article 27 PES | atten eet onty with cloan transport documents Article 28 . Overview of Articles + Effective date of insurance cover must be no later than the date of shipment + 110% of the CIF value of goods + No force majeure - expiry falls in holiday then extended to next working day Overview of Articles . + Force majeure — No extension Article 30 * Tolerance +/- 10% Article 31 + Partial drawings of LC and partial shipments EE tovea by defaut + Force majeure — No extension Overview of Article 34-37. Articles + Bank will act in good faith and will not assume any liability for any kind of falsification of documents or any problem ==] during transmission of messages Overview of Articles Article 38 Transferable credit- + Beneficiary can transfer credit to one or more second beneficiaries but not to third beneficiaries Things which can be changed- LC amount and unit price Expiry date Period of presentation and last date of shipment Insurance percentage Beneficiary name

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