Uniform Customs and Practice for Documentary Credits (UCP)

Uniform Customs and Practice for Documentary Credits (UCP) comprise a set of internationally recognized rules established by the International Chamber of Commerce (ICC). These rules govern the issuance and usage of letters of credit. The latest version, UCP 600, was adopted in 2007. Companies, banks, and various traders employ UCP to streamline trade finance. Key articles cover definitions, obligations of banks, and document examination criteria. The UCP ensures uniformity in international trade transactions.

Entities affected by UCP include importers, exporters, and financial institutions. Letters of credit managed under UCP must comply with specific requirements such as presentation, compliance, and expiry terms. UCP 600 enhances reliability by providing clear and consistent guidelines. It reduces discrepancies by specifying conditions for acceptable documents like invoices, transport documents, and insurance certificates.