LC subject to UCP and ISBP

[jim]

Dear sir,

is it possible to issue a letter of credit subject to both UCP and ISBP? if yes, can we raise discrepancy based on ISBP then?

[Navi]

Dear friend,

In my opinion, UCP 600 and ISBP should not be taken separately. ISBP is consistent with UCP 600 and does not amend it. It explains how the practices articulated in UCP 600 are applied. Therefore, an LC subject to UCP should be also subject to ISBP unless otherwise stated in the credit.

Complying presentation is defined in UCP as a presentation that is in accordance with the credit terms, provisions of UCP and international standard banking practice. From this definition, I understand that ISBP may be diagnostic in determining compliance of a presentation.

These are my opinions, I may be wrong of course. Other comments apreciated.

Regards

[narisa]

Dear Jim ,
In my opinion ,ucp is rules and ISBP is standard for practice of the rules and you can raised discs based on ucp and isbp.
rgds

[picant]

Dear Pals,

Art 14 d of UCP 600 links the UCP to the ISBP, so both rules are applicable. ISBP is the way to check documents, but discrepancies should be found as per UCP 600.
In case of disagreement by the presenting bank you can quote the ISBP point allowing you to state suc discrepancy.

Other comments appreciated

Ciao

[coopermoon]

actually an lc is issued according to the terms of UCP 600, not ISBP..
docs should be checked in the terms of both UCP 600 and ISBP, but discrepancies should be defined
in the articles of UCP 600.. brgds

[cnaw]

In my opinion, if an LC is issued under UCP600, then article 2 on complying presentation will apply. Complying presentation means
documents that comply with LC, UCP 600 and ISBP(not only the book but also any ICC opinion and judgements as well normal banking
practices)

[iLC]

Dear Pals,

Art 14 d of UCP 600 links the UCP to the ISBP, so both rules are applicable. ISBP is the way to check documents, but discrepancies should be found as per UCP 600.
In case of disagreement by the presenting bank you can quote the ISBP point allowing you to state suc discrepancy.

Other comments appreciated

Ciao

you have hit the point. but i really dont understand the purpose of ISBP here.

d. Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.

to me this simply means, data may be in conflict with ISBP as it only requires "need not to be identical"

in fact i do not understand why ICC makes so much mystery with ISBP. this is simply not acceptable to say that ISBP is some sorts of interpretation of UCP. there are few extra document specific rules (?) in ISBP which is missing in UCP. would ICC still call ISBP an interpretation?

[picant]

Hi Pal,

when in Rome , year 2002, the first publication ISBP was presented, I said "finally a booklet that let me to destroy hundreds of opinions, comments etc.". Unfortunately was not so. But those 200 points were useful for thousands of documents checker, sometime not sufficiently instructed by their banks. When UCP 600 came in force, I thought that the most of old comments had to be packed and placed in archiv. We have 700 official opinions, a lot of comments, Docdex decisions etc that are unknown to the most of documents checkers, as they, probably, belong to minor banks or are very far from their H.O..
Reading opinions and ISBP I discovered that sometime I lifted discrepancies, very pretestous or spurios, but it is impossible to know all details of ICC Opinions and comments, and those are not "rationale" so , if you have a very good experience in your work and a knowledge of other industries; transport, insurance etc, you can not realize the final decision of a problem, as this decision will be a compromise.
I think, that instead of a 39 article's booklet, next UCP will be 1,ooo, illustrating all the possible problems and the way to solve them.
Moreover, ICC has to publish a booklet with the list of the opinions still valid. So, it will help many documents checker, to work well and to avoid groundless discrepancies.

Hoping to have been clear!

Comments appreciated

Ciao

[21vita]

Dear sir,

is it possible to issue a letter of credit subject to both UCP and ISBP? if yes, can we raise discrepancy based on ISBP then?

As per icc,lc should not be subject to ISBP, actually even your lc do not mention being subject to ISBP,you can still raised discrepancy based on isbp.UCP600: A complying presentation shoud be in accordance with credit,ucp,and isbp.rmk,of course this isbp has more wide scope,it includes but not limited to ISBP,the pulication.