Certainty in document credit to the banking operations

Abstract

Ten years have passed since the latest formal revision of the UCP (Uniform Customs and Practice for Documentary Credits)-UCP 600 was approved by the Banking Commission Executive Committee (UCC) and officially came into force on 1 July 2007. Through the review of the outstanding international litigations, the UCP 600 has achieved more “certainty” and “flexibility” in dispute resolution in comparison with the previous UCP 500 practice.

Key words: letter of credits; principle of independence; principle of strict compliance