News from the Trade World: Next ICC Global Banking Commission Meeting and more

Next ICC Global Banking Commission Meeting, Release of Technical Advisory Briefing No. 6 Subject: ICC Guidance Papers, ISBP 745 review – alignment with ICC Opinions

Next ICC Global Banking Commission Meeting

The next ICC Global Banking Commission meeting will take place in online format on Tuesday 18 and Wednesday 19 April 2023. The meeting will include two sessions, the Opinions and the Plenary, taking place on the 18th and 19th respectively.

More details regarding the finalised agenda will be shared by the ICC at a later stage. There. Will however, be updates on the different ICC work streams, notably around:

Sustainable trade and trade finance definitions framework and pilot results
Updates of ICC rules
Latest guidance papers
Digitalisation initiatives following the DSI Future of Trade conference
Guarantees taskforce update

Release of Technical Advisory Briefing No. 6 Subject: ICC Guidance Papers

The ICC Banking Commission Technical Advisors and the Issue brief team composed of one National Committee representative for each country have finalised its TA Briefing No. 6: ICC Guidance Papers

The new TA briefing focuses on a set of four guidance papers considered to be of key importance to practitioners. The technical advisors issue briefing focuses respectively on:

Use of Drafts under Documentary Credits
Simple Documentary Credit format
Recommendations in respect of the requirements for an ‘On Board’ Notation
Notes on the Principle of Strict Compliance

The new TA briefing can be downloaded here:

https://library.iccwbo.org/tfb/tfb-briefings.htm

ISBP 745 review – alignment with ICC Opinions

As announced at the ICC Plenary Meeting in Paris (October 2022), a Working Group in order to initiate a limited review of ISBP 745 was initiated.

The aim was to evaluate all ICC Opinions approved since the release of ISBP 745 and ensure that ISBP 745 is fully aligned with their content.

The review has now been completed and 9 Opinions were recognised as containing content that would be meaningful for addition within ISBP 745. These comprised:

New Preliminary Consideration (paragraph viii) stating that the absence of a credit reference number, or the mistyping of a credit reference number, on a document is not a valid reason for refusal. (Opinion 876rev)
New Preliminary Consideration (paragraph ix) providing that administrative conditions such as a requirement for an additional photocopy of all documents, or a statement that all documents may not be stapled, should not be incorporated by an issuing bank in a credit. (Opinion 915rev)
“Industries” has been added to paragraph A1 (Abbreviations). (Opinion 837rev)
A new paragraph (A17 (b)) has been added stating that there is no requirement for the applicant’s name, address and contact details (if any) to appear in a specific box, field or space on an invoice. (Opinion 818rev)
A new paragraph (A31 (b)) has been added stating that copies of documents need not be signed and move existing A31 (b) to A31 (c). (Opinion 842rev3)
A new paragraph (C7) has been added providing that an invoice presented under an LC issued in USD, bearing only the “$‟ sign without further qualification, fulfils the requirement of UCP 600 sub-article 18 (a) (iii) unless data in the invoice itself, or another presented document, implies that the “$‟ sign may refer to a currency other than USD. (Opinion 814rev4)
New paragraphs (D5 (e), E5 (e), F4 (e)) has been added stating that the signature of the master (captain) may be accompanied by a stamp that incorporates the name of the vessel. (Opinion 813)
A new paragraph (G4 (c)) has been added stating that the signature of the master (captain) may be accompanied by a stamp that incorporates the name of the vessel. (Opinion 836rev)
A new paragraph (K2 (b)) has been added stating that UCP 600 does not require that an agent or proxy is to be named in an insurance document and move existing paragraph K2 (b) to K2 (c). (Opinion 835rev)

The updated version of ISBP 745 is now with ICC Publishing and will be made available in due course.

Alignment of eUCP Version 2.0 and eURC Version 1.0 (eRules) with the UNCITRAL Model Law on Electronic Transferable Records (MLETR)

A Working Group with the task of aligning the eRules with the MLETR in respect of issues pertaining to electronic transferable records was established end 2022.

The ICC make it clear that the task was not a revision nor an update of the eRules. But rather an alignment with MLETR with respect to electronic transferable records.

The newly aligned Versions of the eRules will be published as eUCP Version 2.1 & eURC Version 1.1.

The specific changes are detailed below:

Update eUCP sub-article e3 (b) (iii) & eURC sub-article e4 (b) (iii) to state, 'Electronic record, including an electronic transferable record, means …’
Add new definition as eUCP sub-article e3 (b) (v) & eURC sub-article e4 (b) (v) 'Electronic transferable record means an electronic record that contains the information that would be required in the equivalent paper document, such as a negotiable bill of lading or an assignable insurance document.'
Existing eUCP sub-article e3 (b) (v) & eURC sub-article e4 (b) (v) become e3 (b) (vi) & e4 (b) (vi) respectively.
Existing eUCP sub-article e3 (b) (vi) & eURC sub-article e4 (b) (vi) become e3 (b) (vii) & e4 (b) (vii) respectively.
Existing eUCP sub-article e3 (b) (vii) & eURC sub-article e4 (b) (vii) become e3 (b) (viii) & e4 (b) (viii) respectively.
Existing eUCP sub-article e3 (b) (viii) & eURC sub-article e4 (b) (viii) become e3 (b) (ix) & sub-article e4 (b) (ix) respectively.
Existing eURC sub-article e4 (b) (ix) becomes e4 (b) (x).

In addition, work has commenced on formulating electronic documentary credit templates as an appendix for the eUCP.

The updated versions are now with ICC Publishing and will be made available in due course.

Famous Last Word:

Sanctions always hurt the poor, the weak, the children.

Brian May

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