UCP 600: the new rules on documentary compliance

Abstract

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.

Citation

Yen Low, H. (2010), "UCP 600: the new rules on documentary compliance", International Journal of Law and Management, Vol. 52 No. 3, pp. 193-210. https://doi.org/10.1108/17542431011044643