Uniform Customs and Practice for Documentary Credits

The UCP 600 ( Uniform Customs and Practice for Documentary Credits, UCP English, uniform customs and practice for documentary credits ) represent the internationally recognized principles for the settlement of documentary dar. payment processing via credit plays an important role in foreign trade.

The ERA was first published in 1933 and 1951, 1962, 1974, 1983 and 1993 revised. The current latest revision was approved by the Banking Commission of the International Chamber of Commerce ( ICC) unanimously adopted on 25 October 2006 and published in December 2006 as ICC Publication No. 600. It finds application since 1 July 2007. The new rules were implemented practical experience, clarified several open issues and introduced simplifications.

The ERA governing letter of credit in the course, the liability and responsibility of the business partners involved (banks and export merchants ) and the assignment of receivables. The documents involved (invoices, shipping documents, certificates) and dealing with them can be defined. A similar rule constitutes URDG

The letter of credit is defined as follows: The letter of credit is an abstract promise to pay a bank, against certain documents, under certain conditions, to pay a fixed amount of the principal within a given period to the beneficiary.