UCP 600 FOREWORD

This revision of the Uniform Customs and Practice for Documentary Credits (commonly called "UCP") is the sixth revision of the rules since they were first promulgated in 1 !!" #t is the fruit of more than three years of wor$ %y the #nternational Cham%er of Commerce&s (#CC) Commission on 'an$ing Techni(ue and Practice" #CC) which was esta%lished in 1 1 ) had as its primary o%*ective facilitating the flow of international trade at a time when nationalism and protectionism posed serious threats to the world trading system" #t was in that spirit that the UCP were first introduced + to alleviate the confusion caused %y individual countries& promoting their own national rules on letter of credit practice" The o%*ective) since attained) was to create a set of contractual rules that would esta%lish uniformity in that practice) so that practitioners would not have to cope with a plethora of often conflicting national regulations" The universal acceptance of the UCP %y practitioners in countries with widely divergent economic and *udicial systems is a testament to the rules& success" #t is important to recall that the UCP represent the wor$ of a private international organi,ation) not a governmental %ody" -ince its inception) #CC has insisted on the central role of self+regulation in %usiness practice" These rules) formulated entirely %y experts in the private sector) have validated that approach" The UCP remain the most successful set of private rules for trade ever developed" . range of individuals and groups contri%uted to the current revision) which is entitled UCP /00" These include the UCP Drafting 1roup) which sifted through more than 2000 individual comments %efore arriving at this consensus text3 the UCP Consulting 1roup) consisting of mem%ers from more than 42 countries) which served as the advisory %ody reacting to and proposing changes to the various drafts3 the more than 500 mem%ers of the #CC Commission on 'an$ing Techni(ue and Practice who made pertinent suggestions for changes in the text3 and #CC national committees worldwide which too$ an active role in consolidating comments from their mem%ers" #CC also expresses its gratitude to practitioners in the transport and insurance industries) whose perceptive suggestions honed the final draft" 1uy -e%%an -ecretary 1eneral #nternational Cham%er of Commerce

INTRODUCTION

#n 6ay 400!) the #nternational Cham%er of Commerce authori,ed the #CC Commission on 'an$ing Techni(ue and Practice ('an$ing Commission) to %egin a revision of the Uniform Customs and Practice for Documentary Credits) #CC Pu%lication 200" .s with other revisions) the general o%*ective was to address developments in the %an$ing) transport and insurance industries" .dditionally) there was a need to loo$ at the language and style used in the UCP to remove wording that could lead to inconsistent application and interpretation" 7hen wor$ on the revision started) a num%er of glo%al surveys indicated that) %ecause of discrepancies) approximately 809 of documents presented under letters of credit were %eing re*ected on first presentation" This o%viously had) and continues to have) a negative effect on the letter of credit %eing seen as a means of payment and) if unchec$ed) could have serious implications for maintaining or increasing its mar$et share as a recogni,ed means of settlement in international trade" The introduction %y %an$s of a discrepancy fee has highlighted the importance of this issue) especially when the underlying discrepancies have %een found to %e du%ious or unsound" 7hilst the num%er of cases involving litigation has not grown during the lifetime of UCP 200) the introduction of the #CC&s Documentary Credit Dispute :esolution ;xpertise :ules (D<CD;=) in <cto%er 1 8 (su%se(uently revised in 6arch 4004) has resulted in more than /0 cases %eing decided" To address these and other concerns) the 'an$ing Commission esta%lished a Drafting 1roup to revise UCP 200" #t was also decided to create a second group) $nown as the Consulting 1roup) to review and advise on early drafts su%mitted %y the Drafting 1roup" The Consulting 1roup) made up of over 50 individuals from 4/ countries) consisted of %an$ing and transport industry experts" .%ly co+chaired %y >ohn Turn%ull) Deputy 1eneral 6anager) -umitomo 6itsui 'an$ing Corporation ;urope ?td) ?ondon and Carlo Di @inni) .dviser) #talian 'an$ers .ssociation) :ome) the Consulting 1roup provided valua%le input to the Drafting 1roup prior to release of draft texts to #CC national committees" The Drafting 1roup %egan the review process %y analy,ing the content of the official <pinions issued %y the 'an$ing Commission under UCP 200" -ome 200 <pinions were reviewed to assess whether the issues involved warranted a change in) an addition to or a deletion of any UCP article" #n addition) consideration was given to the content of the four Position Papers issued %y the Commission in -eptem%er 1 5) the two Decisions issued %y the Commission (concerning the introduction of the euro and the determination of what constituted an original document under UCP 200 su%+article 40(%) and the decisions issued in D<CD;= cases" During the revision process) notice was ta$en of the considera%le wor$ that had %een completed in creating the International Standard Banking Practice for the Examination of Documents under Documentary Credits (#-'P)) #CC Pu%lication /52" This pu%lication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit" #t is the expectation of the Drafting 1roup and the 'an$ing Commission that the application of the principles contained in the #-'P) including su%se(uent revisions thereof) will continue during the time UCP /00 is in force" .t the time UCP /00 is implemented) there will %e an updated version of the #-'P to %ring its contents in line with the su%stance and style of the new rules"

The four Position Papers issued in -eptem%er 1 5 were issued su%*ect to their application under UCP 2003 therefore) they will not %e applica%le under UCP /00" The essence of the Decision covering the determination of an original document has %een incorporated into the text of UCP /00" The outcome of the D<CD;= cases were invaria%ly %ased on existing #CC 'an$ing Commission <pinions and therefore contained no specific issues that re(uired addressing in these rules" <ne of the structural changes to the UCP is the introduction of articles covering definitions (article 4) and interpretations (article !)" #n providing definitions of roles played %y %an$s and the meaning of specific terms and events) UCP /00 avoids the necessity of repetitive text to explain their interpretation and application" -imilarly) the article covering interpretations aims to ta$e the am%iguity out of vague or unclear language that appears in letters of credit and to provide a definitive elucidation of other characteristics of the UCP or the credit" During the course of the last three years) #CC national committees were canvassed on a range of issues to determine their preferences on alternative texts su%mitted %y the Drafting 1roup" The results of this exercise and the considera%le input from national committees on individual items in the text is reflected in the content of UCP /00" The Drafting 1roup considered) not only the current practice relative to the documentary credit) %ut also tried to envisage the future evolution of that practice" This revision of the UCP represents the culmination of over three years of extensive analysis) review) de%ate and compromise amongst the various mem%ers of the Drafting 1roup) the mem%ers of the 'an$ing Commission and the respective #CC national committees" Aalua%le comment has also %een received from the #CC Commission on Transport and ?ogistics) the Commission on Commercial ?aw and Practice and the Committee on #nsurance" #t is not appropriate for this pu%lication to provide an explanation as to why an article has %een worded in such a way or what is intended %y its incorporation into the rules" Bor those interested in understanding the rationale and interpretation of the articles of UCP /00) this information will %e found in the Commentary to the rules) #CC Pu%lication /01) which represents the Drafting 1roup&s views" <n %ehalf of the Drafting 1roup # would li$e to extend our deep appreciation to the mem%ers of the Consulting 1roup) #CC national committees and mem%ers of the 'an$ing Commission for their professional comments and their constructive participation in this process" -pecial than$s are due to the mem%ers of the Drafting 1roup and their institutions) who are listed %elow in alpha%etical order" @icole Celler + Aice President) -ervice #nternational Products) Dresdner 'an$ .1) Bran$furt) 1ermany3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 ?aurence Cooy + ?egal .dviser) '@P Pari%as) Paris) Brance3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice"

Cat*a ?ehr + 'usiness 6anager) Trade -ervices -tandards) -7#BT) ?a Dulpe) 'elgium) then Aice President) 6em%ership :epresentation) #nternational Binancial -ervices .ssociation) @ew >ersey) U-.3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 <le 6alm(vist + Aice President) Dans$e 'an$) Copenhagen) Denmar$3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 Paul 6isere, + Dead of Trade Binance -tandards) -7#BT) ?a Dulpe) 'elgium3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 :enE 6ueller + Director) Credit -uisse) Furich) -wit,erland3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 Chee -eng -oh + Consultant) .ssociation of 'an$s in -ingapore) -ingapore3 :epresentative to the #CC Commission on 'an$ing Techni(ue and Practice3 Dan Taylor + President and C;<) #nternational Binancial -ervices .ssociation") @ew >ersey U-.3 Aice Chairman) #CC Commission on 'an$ing Techni(ue and Practice3 .lexander Felenov + Director) Anesheconom%an$) 6oscow) :ussia3 Aice Chairman) #CC Commission on 'an$ing Techni(ue and Practice3 :on Cat, + Policy 6anager) #CC Commission on 'an$ing Techni(ue and Practice) #nternational Cham%er of Commerce) Paris) Brance" The undersigned had the pleasure of chairing the Drafting 1roup" #t was through the generous giving of their $nowledge) time and energy that this revision was accomplished so successfully" .s Chair of the Drafting 1roup) # would li$e to extend to them and to their institutions my gratitude for their contri%ution) for a *o% well done and for their friendship" # would also li$e to extend my sincere than$s to the management of .'@ .6:< 'an$ @"A") for their understanding) patience and support during the course of this revision process"

1ary Collyer Corporate Director) .'@ .6:< 'an$ @"A") ?ondon) ;ngland and Technical .dviser to the #CC Commission on 'an$ing Techni(ue and Practice @ovem%er 400/

Content

.rticle 1 .pplication of UCP" G0H .rticle 4 Definitions" G0H .rticle ! #nterpretations" G0H .rticle 5 Credits v" Contracts" G0H .rticle 2 Documents v" 1oods) -ervices or Performance" G0H .rticle / .vaila%ility) ;xpiry Date and Place for Presentation" G0H .rticle 8 #ssuing 'an$ Underta$ing" G0H .rticle I Confirming 'an$ Underta$ing" G0H .rticle .dvising of Credits and .mendments" G0H .rticle 10 .mendments" G0H .rticle 11 Teletransmitted and Pre+.dvised Credits and .mendments" G0H .rticle 14 @omination" G0H .rticle 1! 'an$+to+'an$ :eim%ursement .rrangements" G0H .rticle 15 -tandard for ;xamination of Documents" G0H .rticle 12 Complying Presentation" G0H .rticle 1/ Discrepant Documents) 7aiver and @otice" G0H .rticle 18 <riginal Documents and Copies" G0H .rticle 1I Commercial #nvoice" G0H .rticle 1 Transport Document Covering at ?east Two Different 6odes of Transport G0H .rticle 40 'ill of ?ading" G0H .rticle 41 @on+@egotia%le -ea 7ay%ill G0H .rticle 44 Charter Party 'ill of ?ading" G0H .rticle 4! .ir Transport Document G0H .rticle 45 :oad) :ail or #nland 7aterway Transport Documents" G0H .rticle 42 Courier :eceipt) Post :eceipt or Certificate of Posting" G0H .rticle 4/ "<n Dec$") "-hipper&s ?oad and Count") "-aid %y -hipper to Contain" and Charges .dditional to Breight G0H

.rticle 48 Clean Transport Document G0H .rticle 4I #nsurance Document and Coverage" G0H .rticle 4 ;xtension of ;xpiry Date or ?ast Day for Presentation" G0H .rticle !0 Tolerance in Credit .mount) Juantity and Unit Prices" G0H .rticle !1 Partial Drawings or -hipments" G0H .rticle !4 #nstalment Drawings or -hipments" G0H .rticle !! Dours of Presentation" G0H .rticle !5 Disclaimer on ;ffectiveness of Documents" G0H .rticle !2 Disclaimer on Transmission and Translation" G0H .rticle !/ Borce 6a*eure" G0H .rticle !8 Disclaimer for .cts of an #nstructed Party" G0H .rticle !I Transfera%le Credits" G0H .rticle ! .ssignment of Proceeds" G0H

Article 1 Application of UCP

The Uniform Customs and Practice for Documentary Credits) 4008 :evision) #CC Pu%lication no" /00 ("UCP") are rules that apply to any documentary credit ("credit") (including) to the extent to which they may %e applica%le) any stand%y letter of credit) when the text of the credit expressly indicates that it is su%*ect to these rules" They are %inding on all parties thereto unless expressly modified or excluded %y the credit"

Article 2 Definitions
Bor the purpose of these rulesK Ad isin! "an# means the %an$ that advises the credit at the re(uest of the issuing %an$" Applicant means the party on whose re(uest the credit is issued" $an#in! da% means a day on which a %an$ is regularly open at the place at which an act su%*ect to these rules is to %e performed"

$eneficiar% means the party in whose favour a credit is issued" Co&pl%in! presentation means a presentation that is in accordance with the terms and conditions of the credit) the applica%le provisions of these rules and international standard %an$ing practice" Confir&ation means a definite underta$ing of the confirming %an$) in addition to that of the issuing %an$) to honour or negotiate a complying presentation" Confir&in! "an# means the %an$ that adds its confirmation to a credit upon the issuing %an$&s authori,ation or re(uest" Credit means any arrangement) however named or descri%ed) that is irrevoca%le and there%y constitutes a definite underta$ing of the issuing %an$ to honour a complying presentation" 'ono(r meansK a) to pay at sight if the credit is availa%le %y sight payment" ") to incur a deferred payment underta$ing and pay at maturity if the credit is availa%le %y deferred payment" c) to accept a %ill of exchange ("draft") drawn %y the %eneficiary and pay at maturity if the credit is availa%le %y acceptance" Iss(in! "an# means the %an$ that issues a credit at the re(uest of an applicant or on its own %ehalf" Ne!otiation means the purchase %y the nominated %an$ of drafts (drawn on a %an$ other than the nominated %an$) andLor documents under a complying presentation) %y advancing or agreeing to advance funds to the %eneficiary on or %efore the %an$ing day on which reim%ursement is due to the nominated %an$" No&inated "an# means the %an$ with which the credit is availa%le or any %an$ in the case of a credit availa%le with any %an$" Presentation means either the delivery of documents under a credit to the issuing %an$ or nominated %an$ or the documents so delivered" Presenter means a %eneficiary) %an$ or other party that ma$es a presentation"

Article * Interpretations
Bor the purpose of these rulesK 7here applica%le) words in the singular include the plural and in the plural include the singular" . credit is irrevoca%le even if there is no indication to that effect"

. document may %e signed %y handwriting) facsimile signature) perforated signature) stamp) sym%ol or any other mechanical or electronic method of authentication" . re(uirement for a document to %e legali,ed) visaed) certified or similar will %e satisfied %y any signature) mar$) stamp or la%el on the document which appears to satisfy that re(uirement" 'ranches of a %an$ in different countries are considered to %e separate %an$s" Terms such as "first class") "well $nown") "(ualified") "independent") "official") "competent" or "local" used to descri%e the issuer of a document allow any issuer except the %eneficiary to issue that document" Unless re(uired to %e used in a document) words such as "prompt") "immediately" or "as soon as possi%le" will %e disregarded" The expression "on or a%out" or similar will %e interpreted as a stipulation that an event is to occur during a period of five calendar days %efore until five calendar days after the specified date) %oth start and end dates included" The words "to") "until") "till") "from" and "%etween" when used to determine a period of shipment include the date or dates mentioned) and the words "%efore" and "after" exclude the date mentioned" The words "from" and "after" when used to determine a maturity date exclude the date mentioned" The terms "first half" and "second half" of a month shall %e construed respectively as the 1st to the 12th and the 1/th to the last day of the month) all dates inclusive" The terms "%eginning") "middle" and "end" of a month shall %e construed respectively as the 1st to the 10th) the 11th to the 40th and the 41st to the last day of the month) all dates inclusive"

Article + Credits ) Contracts

a" . credit %y its nature is a separate transaction from the sale or other contract on which it may %e %ased" 'an$s are in no way concerned with or %ound %y such contract) even if any reference whatsoever to it is included in the credit" Conse(uently) the underta$ing of a %an$ to honour) to negotiate or to fulfil any other o%ligation under the credit is not su%*ect to claims or defences %y the applicant resulting from its relationships with the issuing %an$ or the %eneficiary" . %eneficiary can in no case avail itself of the contractual relationships existing %etween %an$s or %etween the applicant and the issuing %an$" "" .n issuing %an$ should discourage any attempt %y the applicant to include) as an integral part of the credit) copies of the underlying contract) proforma invoice and the li$e"

Article , Doc(&ents ) -oods. /er ices or Perfor&ance

'an$s deal with documents and not with goods) services or performance to which the documents may relate"

Article 6 A aila"ilit%. E0pir% Date and Place for Presentation

a" . credit must state the %an$ with which it is availa%le or whether it is availa%le with any %an$" . credit availa%le with a nominated %an$ is also availa%le with the issuing %an$" "" . credit must state whether it is availa%le %y sight payment) deferred payment) acceptance or negotiation" c" . credit must not %e issued availa%le %y a draft drawn on the applicant" d" i) . credit must state an expiry date for presentation" .n expiry date stated for honour or negotiation will %e deemed to %e an expiry date for presentation" ii" The place of the %an$ with which the credit is availa%le is the place for presentation" The place for presentation under a credit availa%le with any %an$ is that of any %an$" . place for presentation other than that of the issuing %an$ is in addition to the place of the issuing %an$" e" ;xcept as provided in su%+article 4 (a)) a presentation %y or on %ehalf of the %eneficiary must %e made on or %efore the expiry date"

Article 1 Iss(in! $an# Underta#in!

2a) Provided that the stipulated documents are presented to the nominated %an$ or to the issuing %an$ and that they constitute a complying presentation) the issuing %an$ must honour if the credit is availa%le %yK i) sight payment) deferred payment or acceptance with the issuing %an$3 ii) sight payment with a nominated %an$ and that nominated %an$ does not pay3 iii) deferred payment with a nominated %an$ and that nominated %an$ does not incur its deferred payment underta$ing or) having incurred its deferred payment underta$ing) does not pay at maturity3 i ) acceptance with a nominated %an$ and that nominated %an$ does not accept a draft drawn on it or) having accepted a draft drawn on it) does not pay at maturity3 ) negotiation with a nominated %an$ and that nominated %an$ does not negotiate"

"" .n issuing %an$ is irrevoca%ly %ound to honour as of the time it issues the credit" c) .n issuing %an$ underta$es to reim%urse a nominated %an$ that has honoured or negotiated a complying presentation and forwarded the documents to the issuing %an$" :eim%ursement for the amount of a complying presentation under a credit availa%le %y acceptance or deferred payment is due at maturity) whether or not the nominated %an$ prepaid or purchased %efore maturity" .n issuing %an$&s underta$ing to reim%urse a nominated %an$ is independent of the issuing %an$&s underta$ing to the %eneficiary"

Article 3 Confir&in! $an# Underta#in!

2a) Provided that the stipulated documents are presented to the confirming %an$ or to any other nominated %an$ and that they constitute a complying presentation) the confirming %an$ mustK 2i) honour) if the credit is availa%le %y a) sight payment) deferred payment or acceptance with the confirming %an$3 ") sight payment with another nominated %an$ and that nominated %an$ does not pay3 c) deferred payment with another nominated %an$ and that nominated %an$ does not incur its deferred payment underta$ing or) having incurred its deferred payment underta$ing) does not pay at maturity3 d) acceptance with another nominated %an$ and that nominated %an$ does not accept a draft drawn on it or) having accepted a draft drawn on it) does not pay at maturity3 e) negotiation with another nominated %an$ and that nominated %an$ does not negotiate" ii) negotiate) without recourse) if the credit is availa%le %y negotiation with the confirming %an$" ") . confirming %an$ is irrevoca%ly %ound to honour or negotiate as of the time it adds its confirmation to the credit" c) . confirming %an$ underta$es to reim%urse another nominated %an$ that has honoured or negotiated a complying presentation and forwarded the documents to the confirming %an$" :eim%ursement for the amount of a complying presentation under a credit availa%le %y acceptance or deferred payment is due at maturity) whether or not another nominated %an$ prepaid or purchased %efore maturity" . confirming %an$&s underta$ing to reim%urse another nominated %an$ is independent of the confirming %an$&s underta$ing to the %eneficiary" d) #f a %an$ is authori,ed or re(uested %y the issuing %an$ to confirm a credit %ut is not prepared to do so) it must inform the issuing %an$ without delay and may advise the credit without confirmation"

Article 4 Ad isin! of Credits and A&end&ents

a" . credit and any amendment may %e advised to a %eneficiary through an advising %an$" .n advising %an$ that is not a confirming %an$ advises the credit and any amendment without any underta$ing to honour or negotiate" "" 'y advising the credit or amendment) the advising %an$ signifies that it has satisfied itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received" c" .n advising %an$ may utili,e the services of another %an$ ("second advising %an$") to advise the credit and any amendment to the %eneficiary" 'y advising the credit or amendment) the second advising %an$ signifies that it has satisfied itself as to the apparent authenticity of the advice it has received and that the advice accurately reflects the terms and conditions of the credit or amendment received" d) . %an$ utili,ing the services of an advising %an$ or second advising %an$ to advise a credit must use the same %an$ to advise any amendment thereto" e" #f a %an$ is re(uested to advise a credit or amendment %ut elects not to do so) it must so inform) without delay) the %an$ from which the credit) amendment or advice has %een received" f" #f a %an$ is re(uested to advise a credit or amendment %ut cannot satisfy itself as to the apparent authenticity of the credit) the amendment or the advice) it must so inform) without delay) the %an$ from which the instructions appear to have %een received" #f the advising %an$ or second advising %an$ elects nonetheless to advise the credit or amendment) it must inform the %eneficiary or second advising %an$ that it has not %een a%le to satisfy itself as to the apparent authenticity of the credit) the amendment or the advice"

Article 10 A&end&ents
a" ;xcept as otherwise provided %y article !I) a credit can neither %e amended nor cancelled without the agreement of the issuing %an$) the confirming %an$) if any) and the %eneficiary" ") .n issuing %an$ is irrevoca%ly %ound %y an amendment as of the time it issues the amendment" . confirming %an$ may extend its confirmation to an amendment and will %e irrevoca%ly %ound as of the time it advises the amendment" . confirming %an$ may) however) choose to advise an amendment without extending its confirmation and) if so) it must inform the issuing %an$ without delay and inform the %eneficiary in its advice" c) The terms and conditions of the original credit (or a credit incorporating previously accepted amendments) will remain in force for the %eneficiary until the %eneficiary communicates its acceptance of the amendment to the %an$ that advised such amendment"

The %eneficiary should give notification of acceptance or re*ection of an amendment" #f the %eneficiary fails to give such notification) a presentation that complies with the credit and to any not yet accepted amendment will %e deemed to %e notification of acceptance %y the %eneficiary of such amendment" .s of that moment the credit will %e amended" d) . %an$ that advises an amendment should inform the %an$ from which it received the amendment of any notification of acceptance or re*ection" e) Partial acceptance of an amendment is not allowed and will %e deemed to %e notification of re*ection of the amendment" f" . provision in an amendment to the effect that the amendment shall enter into force unless re*ected %y the %eneficiary within a certain time shall %e disregarded"

Article 11 Teletrans&itted and Pre5 Ad ised Credits and A&end&ents

a" .n authenticated teletransmission of a credit or amendment will %e deemed to %e the operative credit or amendment) and any su%se(uent mail confirmation shall %e disregarded" #f a teletransmission states "full details to follow" (or words of similar effect)) or states that the mail confirmation is to %e the operative credit or amendment) then the teletransmission will not %e deemed to %e the operative credit or amendment" The issuing %an$ must then issue the operative credit or amendment without delay in terms not inconsistent with the teletransmission" "" . preliminary advice of the issuance of a credit or amendment ("pre+advice") shall only %e sent if the issuing %an$ is prepared to issue the operative credit or amendment" .n issuing %an$ that sends a pre+advice is irrevoca%ly committed to issue the operative credit or amendment) without delay) in terms not inconsistent with the pre+advice"

Article 12 No&ination
a) Unless a nominated %an$ is the confirming %an$) an authori,ation to honour or negotiate does not impose any o%ligation on that nominated %an$ to honour or negotiate) except when expressly agreed to %y that nominated %an$ and so communicated to the %eneficiary" ") 'y nominating a %an$ to accept a draft or incur a deferred payment underta$ing) an issuing %an$ authori,es that nominated %an$ to prepay or purchase a draft accepted or a deferred payment underta$ing incurred %y that nominated %an$" c) :eceipt or examination and forwarding of documents %y a nominated %an$ that is not a confirming %an$ does not ma$e that nominated %an$ lia%le to honour or negotiate) nor does it constitute honour or negotiation"

Article 1* $an#5to5$an# Rei&"(rse&ent Arran!e&ents

a) #f a credit states that reim%ursement is to %e o%tained %y a nominated %an$ ("claiming %an$") claiming on another party ("reim%ursing %an$")) the credit must state if the reim%ursement is su%*ect to the #CC rules for %an$+to+%an$ reim%ursements in effect on the date of issuance of the credit" ") #f a credit does not state that reim%ursement is su%*ect to the #CC rules for %an$+to+ %an$ reim%ursements) the following applyK i) .n issuing %an$ must provide a reim%ursing %an$ with a reim%ursement authori,ation that conforms with the availa%ility stated in the credit" The reim%ursement authori,ation should not %e su%*ect to an expiry date" ii" . claiming %an$ shall not %e re(uired to supply a reim%ursing %an$ with a certificate of compliance with the terms and conditions of the credit" iii" .n issuing %an$ will %e responsi%le for any loss of interest) together with any expenses incurred) if reim%ursement is not provided on first demand %y a reim%ursing %an$ in accordance with the terms and conditions of the credit" i " . reim%ursing %an$&s charges are for the account of the issuing %an$" Dowever) if the charges are for the account of the %eneficiary) it is the responsi%ility of an issuing %an$ to so indicate in the credit and in the reim%ursement authori,ation" #f a reim%ursing %an$&s charges are for the account of the %eneficiary) they shall %e deducted from the amount due to a claiming %an$ when reim%ursement is made" #f no reim%ursement is made) the reim%ursing %an$&s charges remain the o%ligation of the issuing %an$" c" .n issuing %an$ is not relieved of any of its o%ligations to provide reim%ursement if reim%ursement is not made %y a reim%ursing %an$ on first demand"

Article 1+ /tandard for E0a&ination of Doc(&ents

a" . nominated %an$ acting on its nomination) a confirming %an$) if any) and the issuing %an$ must examine a presentation to determine) on the %asis of the documents alone) whether or not the documents appear on their face to constitute a complying presentation" ") . nominated %an$ acting on its nomination) a confirming %an$) if any) and the issuing %an$ shall each have a maximum of five %an$ing days following the day of presentation to determine if a presentation is complying" This period is not curtailed or otherwise affected %y the occurrence on or after the date of presentation of any expiry date or last day for presentation" c" . presentation including one or more original transport documents su%*ect to articles 1 ) 40) 41) 44) 4!) 45 or 42 must %e made %y or on %ehalf of the %eneficiary not later than

41 calendar days after the date of shipment as descri%ed in these rules) %ut in any event not later than the expiry date of the credit" d" Data in a document) when read in context with the credit) the document itself and international standard %an$ing practice) need not %e identical to) %ut must not conflict with) data in that document) any other stipulated document or the credit" e) #n documents other than the commercial invoice) the description of the goods) services or performance) if stated) may %e in general terms not conflicting with their description in the credit" f) #f a credit re(uires presentation of a document other than a transport document) insurance document or commercial invoice) without stipulating %y whom the document is to %e issued or its data content) %an$s will accept the document as presented if its content appears to fulfil the function of the re(uired document and otherwise complies with su%+ article 15 (d)" !" . document presented %ut not re(uired %y the credit will %e disregarded and may %e returned to the presenter" 6) #f a credit contains a condition without stipulating the document to indicate compliance with the condition) %an$s will deem such condition as not stated and will disregard it" i) . document may %e dated prior to the issuance date of the credit) %ut must not %e dated later than its date of presentation" 7" 7hen the addresses of the %eneficiary and the applicant appear in any stipulated document) they need not %e the same as those stated in the credit or in any other stipulated document) %ut must %e within the same country as the respective addresses mentioned in the credit" Contact details (telefax) telephone) email and the li$e) stated as part of the %eneficiary&s and the applicant&s address will %e disregarded" Dowever) when the address and contact details of the applicant appear as part of the consignee or notify party details on a transport document su%*ect to articles 1 ) 40) 41) 44) 4!) 45 or 42) they must %e as stated in the credit" #) The shipper or consignor of the goods indicated on any document need not %e the %eneficiary of the credit" l) . transport document may %e issued %y any party other than a carrier) owner) master or charterer provided that the transport document meets the re(uirements of articles 1 ) 40) 41) 44) 4! or 45 of these rules"

Article 1, Co&pl%in! Presentation

a" 7hen an issuing %an$ determines that a presentation is complying) it must honour" "" 7hen a confirming %an$ determines that a presentation is complying) it must honour or negotiate and forward the documents to the issuing %an$"

c) 7hen a nominated %an$ determines that a presentation is complying and honours or negotiates) it must forward the documents to the confirming %an$ or issuing %an$"

Article 16 Discrepant Doc(&ents. Wai er and Notice

a" 7hen a nominated %an$ acting on its nomination) a confirming %an$) if any) or the issuing %an$ determines that a presentation does not comply) it may refuse to honour or negotiate" "" 7hen an issuing %an$ determines that a presentation does not comply) it may in its sole *udgement approach the applicant for a waiver of the discrepancies" This does not) however) extend the period mentioned in su%+article 15 (%)" c" 7hen a nominated %an$ acting on its nomination) a confirming %an$) if any) or the issuing %an$ decides to refuse to honour or negotiate) it must give a single notice to that effect to the presenter" The notice must stateK i) that the %an$ is refusing to honour or negotiate3 and ii) each discrepancy in respect of which the %an$ refuses to honour or negotiate3 and iii) a) that the %an$ is holding the documents pending further instructions from the presenter3 or %) that the issuing %an$ is holding the documents until it receives a waiver from the applicant and agrees to accept it) or receives further instructions from the presenter prior to agreeing to accept a waiver3 or c) that the %an$ is returning the documents3 or d) that the %an$ is acting in accordance with instructions previously received from the presenter" d" The notice re(uired in su%+article 1/ (c) must %e given %y telecommunication or) if that is not possi%le) %y other expeditious means no later than the close of the fifth %an$ing day following the day of presentation" e) . nominated %an$ acting on its nomination) a confirming %an$) if any) or the issuing %an$ may) after providing notice re(uired %y su%+article 1/ (c) (iii) (a) or (%)) return the documents to the presenter at any time" f" #f an issuing %an$ or a confirming %an$ fails to act in accordance with the provisions of this article) it shall %e precluded from claiming that the documents do not constitute a complying presentation"

!) 7hen an issuing %an$ refuses to honour or a confirming %an$ refuses to honour or negotiate and has given notice to that effect in accordance with this article) it shall then %e entitled to claim a refund) with interest) of any reim%ursement made"

Article 11 Ori!inal Doc(&ents and Copies

a" .t least one original of each document stipulated in the credit must %e presented" "" . %an$ shall treat as an original any document %earing an apparently original signature) mar$) stamp) or la%el of the issuer of the document) unless the document itself indicates that it is not an original" c) Unless a document indicates otherwise) a %an$ will also accept a document as original if itK i) appears to %e written) typed) perforated or stamped %y the document issuer&s hand3 or ii) appears to %e on the document issuer&s original stationery3 or iii) states that it is original) unless the statement appears not to apply to the document presented" d" #f a credit re(uires presentation of copies of documents) presentation of either originals or copies is permitted" e) #f a credit re(uires presentation of multiple documents %y using terms such as "in duplicate") "in two fold" or "in two copies") this will %e satisfied %y the presentation of at least one original and the remaining num%er in copies) except when the document itself indicates otherwise"

Article 13 Co&&ercial In oice

a) . commercial invoiceK i) must appear to have %een issued %y the %eneficiary (except as provided in article !I)3 ii) must %e made out in the name of the applicant (except as provided in su%+article !I (g))3 iii) must %e made out in the same currency as the credit3 and i ) need not %e signed" "" . nominated %an$ acting on its nomination) a confirming %an$) if any) or the issuing %an$ may accept a commercial invoice issued for an amount in excess of the amount permitted %y the credit) and its decision will %e %inding upon all parties) provided the %an$ in (uestion has not honoured or negotiated for an amount in excess of that permitted %y the credit"

c" The description of the goods) services or performance in a commercial invoice must correspond with that appearing in the credit"

Article 14 Transport Doc(&ent Co erin! at 8east T9o Different :odes of Transport

a" . transport document covering at least two different modes of transport (multimodal or com%ined transport document)) however named) must appear toK i) indicate the name of the carrier and %e signed %yK the carrier or a named agent for or on %ehalf of the carrier) or the master or a named agent for or on %ehalf of the master" .ny signature %y the carrier) master or agent must %e identified as that of the carrier) master or agent" .ny signature %y an agent must indicate whether the agent has signed for or on %ehalf of the carrier or for or on %ehalf of the master" ii" indicate that the goods have %een dispatched) ta$en in charge or shipped on %oard at the place stated in the credit) %yK pre+printed wording) or a stamp or notation indicating the date on which the goods have %een dispatched) ta$en in charge or shipped on %oard" The date of issuance of the transport document will %e deemed to %e the date of dispatch) ta$ing in charge or shipped on %oard) and the date of shipment" Dowever) if the transport document indicates) %y stamp or notation) a date of dispatch) ta$ing in charge or shipped on %oard) this date will %e deemed to %e the date of shipment" iii" indicate the place of dispatch) ta$ing in charge or shipment and the place of final destination stated in the credit) even ifK a) the transport document states) in addition) a different place of dispatch) ta$ing in charge or shipment or place of final destination) or ") the transport document contains the indication "intended" or similar (ualification in relation to the vessel) port of loading or port of discharge" i " %e the sole original transport document or) if issued in more than one original) %e the full set as indicated on the transport document"

" contain terms and conditions of carriage or ma$e reference to another source containing the terms and conditions of carriage (short form or %lan$ %ac$ transport document)" Contents of terms and conditions of carriage will not %e examined" i" contain no indication that it is su%*ect to a charter party" ") Bor the purpose of this article) transhipment means unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes of transport) during the carriage from the place of dispatch) ta$ing in charge or shipment to the place of final destination stated in the credit" c) i) . transport document may indicate that the goods will or may %e transhipped provided that the entire carriage is covered %y one and the same transport document" ii) . transport document indicating that transhipment will or may ta$e place is accepta%le) even if the credit prohi%its transhipment"

Article 20 $ill of 8adin!

a" . %ill of lading) however named) must appear toK i" indicate the name of the carrier and %e signed %yK the carrier or a named agent for or on %ehalf of the carrier) or the master or a named agent for or on %ehalf of the master"

.ny signature %y the carrier) master or agent must %e identified as that of the carrier) master or agent" .ny signature %y an agent must indicate whether the agent has signed for or on %ehalf of the carrier or for or on %ehalf of the master" ii) indicate that the goods have %een shipped on %oard a named vessel at the port of loading stated in the credit %yK pre+printed wording) or an on %oard notation indicating the date on which the goods have %een shipped on %oard" The date of issuance of the %ill of lading will %e deemed to %e the date of shipment unless the %ill of lading contains an on %oard notation indicating the date of shipment) in which case the date stated in the on %oard notation will %e deemed to %e the date of shipment" #f the %ill of lading contains the indication "intended vessel" or similar (ualification in relation to the name of the vessel) an on %oard notation indicating the date of shipment and the name of the actual vessel is re(uired" iii" indicate shipment from the port of loading to the port of discharge stated in the credit"

#f the %ill of lading does not indicate the port of loading stated in the credit as the port of loading) or if it contains the indication "intended" or similar (ualification in relation to the port of loading) an on %oard notation indicating the port of loading as stated in the credit) the date of shipment and the name of the vessel is re(uired" This provision applies even when loading on %oard or shipment on a named vessel is indicated %y preprinted wording on the %ill of lading" i " %e the sole original %ill of lading or) if issued in more than one original) %e the full set as indicated on the %ill of lading" " contain terms and conditions of carriage or ma$e reference to another source containing the terms and conditions of carriage (short form or %lan$ %ac$ %ill of lading)" Contents of terms and conditions of carriage will not %e examined" i" contain no indication that it is su%*ect to a charter party" "" Bor the purpose of this article) transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit" c) i) . %ill of lading may indicate that the goods will or may %e transshipped provided that the entire carriage is covered %y one and the same %ill of lading" ii) . %ill of lading indicating that transhipment will or may ta$e place is accepta%le) even if the credit prohi%its transhipment) if the goods have %een shipped in a container) trailer or ?.-D %arge as evidenced %y the %ill of lading" d" Clauses in a %ill of lading stating that the carrier reserves the right to tranship will %e disregarded"

Article 21 Non5Ne!otia"le /ea Wa%"ill

a" . non+negotia%le sea way%ill) however named) must appear toK i" indicate the name of the carrier and %e signed %yK the carrier or a named agent for or on %ehalf of the carrier) or the master or a named agent for or on %ehalf of the master"

.ny signature %y the carrier) master or agent must %e identified as that of the carrier) master or agent" .ny signature %y an agent must indicate whether the agent has signed for or on %ehalf of the carrier or for or on %ehalf of the master" ii) indicate that the goods have %een shipped on %oard a named vessel at the port of loading stated in the credit %yK pre+printed wording) or

an on %oard notation indicating the date on which the goods have %een shipped on %oard" The date of issuance of the non+negotia%le sea way%ill will %e deemed to %e the date of shipment unless the non+negotia%le sea way%ill contains an on %oard notation indicating the date of shipment) in which case the date stated in the on %oard notation will %e deemed to %e the date of shipment" #f the non+negotia%le sea way%ill contains the indication "intended vessel" or similar (ualification in relation to the name of the vessel) an on %oard notation indicating the date of shipment and the name of the actual vessel is re(uired" iii" indicate shipment from the port of loading to the port of discharge stated in the credit" #f the non+negotia%le sea way%ill does not indicate the port of loading stated in the credit as the port of loading) or if it contains the indication "intended" or similar (ualification in relation to the port of loading) an on %oard notation indicating the port of loading as stated in the credit) the date of shipment and the name of the vessel is re(uired" This provision applies even when loading on %oard or shipment on a named vessel is indicated %y pre+printed wording on the non+negotia%le sea way%ill" i " %e the sole original non+negotia%le sea way%ill or) if issued in more than one original) %e the full set as indicated on the non+negotia%le sea way%ill" " contain terms and conditions of carriage or ma$e reference to another source containing the terms and conditions of carriage (short form or %lan$ %ac$ non+negotia%le sea way%ill)" Contents of terms and conditions of carriage will not %e examined" i" contain no indication that it is su%*ect to a charter party" "" Bor the purpose of this article) transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit" c) i) . non+negotia%le sea way%ill may indicate that the goods will or may %e transhipped provided that the entire carriage is covered %y one and the same non+negotia%le sea way%ill" ii) . non+negotia%le sea way%ill indicating that transhipment will or may ta$e place is accepta%le) even if the credit prohi%its transhipment) if the goods have %een shipped in a container) trailer or ?.-D %arge as evidenced %y the non+negotia%le sea way%ill" d" Clauses in a non+negotia%le sea way%ill stating that the carrier reserves the right to tranship will %e disregarded"

Article 22 C6arter Part% $ill of 8adin!

a" . %ill of lading) however named) containing an indication that it is su%*ect to a charter party (charter party %ill of lading)) must appear toK i" %e signed %yK

the master or a named agent for or on %ehalf of the master) or the owner or a named agent for or on %ehalf of the owner) or the charterer or a named agent for or on %ehalf of the charterer" .ny signature %y the master) owner) charterer or agent must %e identified as that of the master) owner) charterer or agent" .ny signature %y an agent must indicate whether the agent has signed for or on %ehalf of the master) owner or charterer" .n agent signing for or on %ehalf of the owner or charterer must indicate the name of the owner or charterer" ii" indicate that the goods have %een shipped on %oard a named vessel at the port of loading stated in the credit %yK pre+printed wording) or an on %oard notation indicating the date on which the goods have %een shipped on %oard" The date of issuance of the charter party %ill of lading will %e deemed to %e the date of shipment unless the charter party %ill of lading contains an on %oard notation indicating the date of shipment) in which case the date stated in the on %oard notation will %e deemed to %e the date of shipment" iii) indicate shipment from the port of loading to the port of discharge stated in the credit" The port of discharge may also %e shown as a range of ports or a geographical area) as stated in the credit" i " %e the sole original charter party %ill of lading or) if issued in more than one original) %e the full set as indicated on the charter party %ill of lading" "" . %an$ will not examine charter party contracts) even if they are re(uired to %e presented %y the terms of the credit"

Article 2* Air Transport Doc(&ent

a" .n air transport document) however named) must appear toK i" indicate the name of the carrier and %e signed %yK the carrier) or a named agent for or on %ehalf of the carrier" .ny signature %y the carrier or agent must %e identified as that of the carrier or agent" .ny signature %y an agent must indicate that the agent has signed for or on %ehalf of the carrier"

ii" indicate that the goods have %een accepted for carriage" iii) indicate the date of issuance" This date will %e deemed to %e the date of shipment unless the air transport document contains a specific notation of the actual date of shipment) in which case the date stated in the notation will %e deemed to %e the date of shipment" .ny other information appearing on the air transport document relative to the flight num%er and date will not %e considered in determining the date of shipment" i " indicate the airport of departure and the airport of destination stated in the credit" ) %e the original for consignor or shipper) even if the credit stipulates a full set of originals" i" contain terms and conditions of carriage or ma$e reference to another source containing the terms and conditions of carriage" Contents of terms and conditions of carriage will not %e examined" ") Bor the purpose of this article) transhipment means unloading from one aircraft and reloading to another aircraft during the carriage from the airport of departure to the airport of destination stated in the credit" c" i) .n air transport document may indicate that the goods will or may %e transhipped) provided that the entire carriage is covered %y one and the same air transport document" ii) .n air transport document indicating that transhipment will or may ta$e place is accepta%le) even if the credit prohi%its transhipment"

Article 2+ Road. Rail or Inland Water9a% Transport Doc(&ents

a" . road) rail or inland waterway transport document) however named) must appear toK i" indicate the name of the carrier andK %e signed %y the carrier or a named agent for or on %ehalf of the carrier) or indicate receipt of the goods %y signature) stamp or notation %y the carrier or a named agent for or on %ehalf of the carrier" .ny signature) stamp or notation of receipt of the goods %y the carrier or agent must %e identified as that of the carrier or agent" .ny signature) stamp or notation of receipt of the goods %y the agent must indicate that the agent has signed or acted for or on %ehalf of the carrier" #f a rail transport document does not identify the carrier) any signature or stamp of the railway company will %e accepted as evidence of the document %eing signed %y the carrier"

ii" indicate the date of shipment or the date the goods have %een received for shipment) dispatch or carriage at the place stated in the credit" Unless the transport document contains a dated reception stamp) an indication of the date of receipt or a date of shipment) the date of issuance of the transport document will %e deemed to %e the date of shipment" iii" indicate the place of shipment and the place of destination stated in the credit" "" i) . road transport document must appear to %e the original for consignor or shipper or %ear no mar$ing indicating for whom the document has %een prepared" ii) . rail transport document mar$ed "duplicate" will %e accepted as an original" iii) . rail or inland waterway transport document will %e accepted as an original whether mar$ed as an original or not" c) #n the a%sence of an indication on the transport document as to the num%er of originals issued) the num%er presented will %e deemed to constitute a full set" d) Bor the purpose of this article) transhipment means unloading from one means of conveyance and reloading to another means of conveyance) within the same mode of transport) during the carriage from the place of shipment) dispatch or carriage to the place of destination stated in the credit" e" i) . road) rail or inland waterway transport document may indicate that the goods will or may %e transhipped provided that the entire carriage is covered %y one and the same transport document" ii) . road) rail or inland waterway transport document indicating that transhipment will or may ta$e place is accepta%le) even if the credit prohi%its transhipment"

Article 2, Co(rier Receipt. Post Receipt or Certificate of Postin!

a) . courier receipt) however named) evidencing receipt of goods for transport) must appear toK i" indicate the name of the courier service and %e stamped or signed %y the named courier service at the place from which the credit states the goods are to %e shipped3 and ii" indicate a date of pic$+up or of receipt or wording to this effect" This date will %e deemed to %e the date of shipment" "" . re(uirement that courier charges are to %e paid or prepaid may %e satisfied %y a transport document issued %y a courier service evidencing that courier charges are for the account of a party other than the consignee" c" . post receipt or certificate of posting) however named) evidencing receipt of goods for transport) must appear to %e stamped or signed and dated at the place from which the

credit states the goods are to %e shipped" This date will %e deemed to %e the date of shipment"

Article 26 ;On Dec#;. ;/6ipper<s 8oad and Co(nt;. ;/aid "% /6ipper to Contain; and C6ar!es Additional to Frei!6t
a" . transport document must not indicate that the goods are or will %e loaded on dec$" . clause on a transport document stating that the goods may %e loaded on dec$ is accepta%le" ") . transport document %earing a clause such as "shipper&s load and count" and "said %y shipper to contain" is accepta%le" c" . transport document may %ear a reference) %y stamp or otherwise) to charges additional to the freight"

Article 21 Clean Transport Doc(&ent

. %an$ will only accept a clean transport document" . clean transport document is one %earing no clause or notation expressly declaring a defective condition of the goods or their pac$aging" The word "clean" need not appear on a transport document) even if a credit has a re(uirement for that transport document to %e "clean on %oard""

Article 23 Ins(rance Doc(&ent and Co era!e

a" .n insurance document) such as an insurance policy) an insurance certificate or a declaration under an open cover) must appear to %e issued and signed %y an insurance company) an underwriter or their agents or their proxies" .ny signature %y an agent or proxy must indicate whether the agent or proxy has signed for or on %ehalf of the insurance company or underwriter" "" 7hen the insurance document indicates that it has %een issued in more than one original) all originals must %e presented" c" Cover notes will not %e accepted" d) .n insurance policy is accepta%le in lieu of an insurance certificate or a declaration under an open cover"

e" The date of the insurance document must %e no later than the date of shipment) unless it appears from the insurance document that the cover is effective from a date not later than the date of shipment" f" i) The insurance document must indicate the amount of insurance coverage and %e in the same currency as the credit" ii) . re(uirement in the credit for insurance coverage to %e for a percentage of the value of the goods) of the invoice value or similar is deemed to %e the minimum amount of coverage re(uired" #f there is no indication in the credit of the insurance coverage re(uired) the amount of insurance coverage must %e at least 1109 of the C#B or C#P value of the goods" 7hen the C#B or C#P value cannot %e determined from the documents) the amount of insurance coverage must %e calculated on the %asis of the amount for which honour or negotiation is re(uested or the gross value of the goods as shown on the invoice) whichever is greater" iii) The insurance document must indicate that ris$s are covered at least %etween the place of ta$ing in charge or shipment and the place of discharge or final destination as stated in the credit" !" . credit should state the type of insurance re(uired and) if any) the additional ris$s to %e covered" .n insurance document will %e accepted without regard to any ris$s that are not covered if the credit uses imprecise terms such as "usual ris$s" or "customary ris$s"" 6) 7hen a credit re(uires insurance against "all ris$s" and an insurance document is presented containing any "all ris$s" notation or clause) whether or not %earing the heading "all ris$s") the insurance document will %e accepted without regard to any ris$s stated to %e excluded" i" .n insurance document may contain reference to any exclusion clause" 7" .n insurance document may indicate that the cover is su%*ect to a franchise or excess (deducti%le)"

Article 24 E0tension of E0pir% Date or 8ast Da% for Presentation

a" #f the expiry date of a credit or the last day for presentation falls on a day when the %an$ to which presentation is to %e made is closed for reasons other than those referred to in article !/) the expiry date or the last day for presentation) as the case may %e) will %e extended to the first following %an$ing day" ") #f presentation is made on the first following %an$ing day) a nominated %an$ must provide the issuing %an$ or confirming %an$ with a statement on its covering schedule that the presentation was made within the time limits extended in accordance with su%+article 4 (a)"

c" The latest date for shipment will not %e extended as a result of su%+article 4 (a)"

Article *0 Tolerance in Credit A&o(nt. =(antit% and Unit Prices

a" The words "a%out" or "approximately" used in connection with the amount of the credit or the (uantity or the unit price stated in the credit are to %e construed as allowing a tolerance not to exceed 109 more or 109 less than the amount) the (uantity or the unit price to which they refer" "" . tolerance not to exceed 29 more or 29 less than the (uantity of the goods is allowed) provided the credit does not state the (uantity in terms of a stipulated num%er of pac$ing units or individual items and the total amount of the drawings does not exceed the amount of the credit" c" ;ven when partial shipments are not allowed) a tolerance not to exceed 29 less than the amount of the credit is allowed) provided that the (uantity of the goods) if stated in the credit) is shipped in full and a unit price) if stated in the credit) is not reduced or that su%+ article !0 (%) is not applica%le" This tolerance does not apply when the credit stipulates a specific tolerance or uses the expressions referred to in su%+article !0 (a)"

Article *1 Partial Dra9in!s or /6ip&ents

a) Partial drawings or shipments are allowed" ") . presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same *ourney) provided they indicate the same destination) will not %e regarded as covering a partial shipment) even if they indicate different dates of shipment or different ports of loading) places of ta$ing in charge or dispatch" #f the presentation consists of more than one set of transport documents) the latest date of shipment as evidenced on any of the sets of transport documents will %e regarded as the date of shipment" . presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will %e regarded as covering a partial shipment) even if the means of conveyance leave on the same day for the same destination" c" . presentation consisting of more than one courier receipt) post receipt or certificate of posting will not %e regarded as a partial shipment if the courier receipts) post receipts or certificates of posting appear to have %een stamped or signed %y the same courier or postal service at the same place and date and for the same destination"

Article *2 Instal&ent Dra9in!s or /6ip&ents

#f a drawing or shipment %y instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment) the credit ceases to %e availa%le for that and any su%se(uent instalment"

Article ** 'o(rs of Presentation

. %an$ has no o%ligation to accept a presentation outside of its %an$ing hours"

Article *+ Disclai&er on Effecti eness of Doc(&ents

. %an$ assumes no lia%ility or responsi%ility for the form) sufficiency) accuracy) genuineness) falsification or legal effect of any document) or for the general or particular conditions stipulated in a document or superimposed thereon3 nor does it assume any lia%ility or responsi%ility for the description) (uantity) weight) (uality) condition) pac$ing) delivery) value or existence of the goods) services or other performance represented %y any document) or for the good faith or acts or omissions) solvency) performance or standing of the consignor) the carrier) the forwarder) the consignee or the insurer of the goods or any other person"

Article *, Disclai&er on Trans&ission and Translation

. %an$ assumes no lia%ility or responsi%ility for the conse(uences arising out of delay) loss in transit) mutilation or other errors arising in the transmission of any messages or delivery of letters or documents) when such messages) letters or documents are transmitted or sent according to the re(uirements stated in the credit) or when the %an$ may have ta$en the initiative in the choice of the delivery service in the a%sence of such instructions in the credit" #f a nominated %an$ determines that a presentation is complying and forwards the documents to the issuing %an$ or confirming %an$) whether or not the nominated %an$ has honoured or negotiated) an issuing %an$ or confirming %an$ must honour or negotiate) or reim%urse that nominated %an$) even when the documents have %een lost in transit %etween the nominated %an$ and the issuing %an$ or confirming %an$) or %etween the confirming %an$ and the issuing %an$" . %an$ assumes no lia%ility or responsi%ility for errors in translation or interpretation of technical terms and may transmit credit terms without translating them"

Article *6 Force :a7e(re

. %an$ assumes no lia%ility or responsi%ility for the conse(uences arising out of the interruption of its %usiness %y .cts of 1od) riots) civil commotions) insurrections) wars) acts of terrorism) or %y any stri$es or loc$outs or any other causes %eyond its control" . %an$ will not) upon resumption of its %usiness) honour or negotiate under a credit that expired during such interruption of its %usiness"

Article *1 Disclai&er for Acts of an Instr(cted Part%

a" . %an$ utili,ing the services of another %an$ for the purpose of giving effect to the instructions of the applicant does so for the account and at the ris$ of the applicant" "" .n issuing %an$ or advising %an$ assumes no lia%ility or responsi%ility should the instructions it transmits to another %an$ not %e carried out) even if it has ta$en the initiative in the choice of that other %an$" c" . %an$ instructing another %an$ to perform services is lia%le for any commissions) fees) costs or expenses ("charges") incurred %y that %an$ in connection with its instructions" #f a credit states that charges are for the account of the %eneficiary and charges cannot %e collected or deducted from proceeds) the issuing %an$ remains lia%le for payment of charges" . credit or amendment should not stipulate that the advising to a %eneficiary is conditional upon the receipt %y the advising %an$ or second advising %an$ of its charges" d" The applicant shall %e %ound %y and lia%le to indemnify a %an$ against all o%ligations and responsi%ilities imposed %y foreign laws and usages"

Article *3 Transfera"le Credits

a) . %an$ is under no o%ligation to transfer a credit except to the extent and in the manner expressly consented to %y that %an$" ") Bor the purpose of this articleK Transfera%le credit means a credit that specifically states it is "transfera%le"" . transfera%le credit may %e made availa%le in whole or in part to another %eneficiary ("second %eneficiary") at the re(uest of the %eneficiary ("first %eneficiary")" Transferring %an$ means a nominated %an$ that transfers the credit or) in a credit availa%le with any %an$) a %an$ that is specifically authori,ed %y the issuing %an$ to transfer and that transfers the credit" .n issuing %an$ may %e a transferring %an$" Transferred credit means a credit that has %een made availa%le %y the transferring %an$ to a second %eneficiary"

c) Unless otherwise agreed at the time of transfer) all charges (such as commissions) fees) costs or expenses) incurred in respect of a transfer must %e paid %y the first %eneficiary" d) . credit may %e transferred in part to more than one second %eneficiary provided partial drawings or shipments are allowed" . transferred credit cannot %e transferred at the re(uest of a second %eneficiary to any su%se(uent %eneficiary" The first %eneficiary is not considered to %e a su%se(uent %eneficiary" e) .ny re(uest for transfer must indicate if and under what conditions amendments may %e advised to the second %eneficiary" The transferred credit must clearly indicate those conditions" f) #f a credit is transferred to more than one second %eneficiary) re*ection of an amendment %y one or more second %eneficiary does not invalidate the acceptance %y any other second %eneficiary) with respect to which the transferred credit will %e amended accordingly" Bor any second %eneficiary that re*ected the amendment) the transferred credit will remain unamended" !) The transferred credit must accurately reflect the terms and conditions of the credit) including confirmation) if any) with the exception ofK + the amount of the credit) + any unit price stated therein) + the expiry date) + the period for presentation) or + the latest shipment date or given period for shipment) any or all of which may %e reduced or curtailed" The percentage for which insurance cover must %e effected may %e increased to provide the amount of cover stipulated in the credit or these articles" The name of the first %eneficiary may %e su%stituted for that of the applicant in the credit" #f the name of the applicant is specifically re(uired %y the credit to appear in any document other than the invoice) such re(uirement must %e reflected in the transferred credit" 6) The first %eneficiary has the right to su%stitute its own invoice and draft) if any) for those of a second %eneficiary for an amount not in excess of that stipulated in the credit) and upon such su%stitution the first %eneficiary can draw under the credit for the difference) if any) %etween its invoice and the invoice of a second %eneficiary" i) #f the first %eneficiary is to present its own invoice and draft) if any) %ut fails to do so on first demand) or if the invoices presented %y the first %eneficiary create discrepancies that did not exist in the presentation made %y the second %eneficiary and the first %eneficiary fails to correct them on first demand) the transferring %an$ has the right to present the

documents as received from the second %eneficiary to the issuing %an$) without further responsi%ility to the first %eneficiary" 7) The first %eneficiary may) in its re(uest for transfer) indicate that honour or negotiation is to %e effected to a second %eneficiary at the place to which the credit has %een transferred) up to and including the expiry date of the credit" This is without pre*udice to the right of the first %eneficiary in accordance with su%+article !I (h)" #) Presentation of documents %y or on %ehalf of a second %eneficiary must %e made to the transferring %an$"

Article *4 Assi!n&ent of Proceeds

The fact that a credit is not stated to %e transfera%le shall not affect the right of the %eneficiary to assign any proceeds to which it may %e or may %ecome entitled under the credit) in accordance with the provisions of applica%le law" This article relates only to the assignment of proceeds and not to the assignment of the right to perform under the credit"