Hello
can we open an L/C in subject to UCP both parties (appl.benf. İB. nominated bank etc) in the same country
and if a L/C issued with MT 700 like that subject to domestic laws
which law can be valid ( is there a direct link to UCP because of issued by swift MT 700)
thanks in advance
domestic L/C and laws
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edilee
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picant
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Domestic l/c
Hi Pal,
Domestic l/c are possible under UCP if the local laws consent such possibility. In Italy, Local customs in a booklet issued by the Italian Chamber of Commerce quoting artt 1527 and 1530 of the italian civil code place a Documentary Credit under the pro-tempore ICC UCP.
MT 700 of SWIFT must indicate in field 40 E the applicable rules, that could be UCP Latest Version(UCP 600) but other rules or none.
So documenary credit could be ruled by different terms and conditions.
Other comments appreciated
Ciao
Domestic l/c are possible under UCP if the local laws consent such possibility. In Italy, Local customs in a booklet issued by the Italian Chamber of Commerce quoting artt 1527 and 1530 of the italian civil code place a Documentary Credit under the pro-tempore ICC UCP.
MT 700 of SWIFT must indicate in field 40 E the applicable rules, that could be UCP Latest Version(UCP 600) but other rules or none.
So documenary credit could be ruled by different terms and conditions.
Other comments appreciated
Ciao