UCP 600: the new rules on documentary compliance
Purpose - The purpose of this paper is to examine the changes brought about by Uniform Customs and Practice for Documentary Credits (UCP) 600 in relation to issues of document discrepancies. Design/methodology/approach - A detailed comparison of both the UCP 500 and the UCP 600 is conducted. The paper adopts a critical analysis approach. Findings - The UCP 600 does provide a better version of the rules than the UCP 500, but there is still room for improvement. Research limitations/implications - The UCP 600 only came into force on 1 July 2007 and it is too early to conduct an empirical research to investigate the actual effects of the new rules. Practical implications - Banks and sellers should implement policy changes within their institution so as to comply with UCP 600. Originality/value - All parties involved in international trading will have a better understanding of how documents will be compliant under the new UCP 600, thereby avoiding monetary losses, delay in time and unwarranted litigation.
International Journal of Law and Management
Commercial and Contract Law