The UCP 600 (Uniform Customs & Practice for Documentary Credits) is a certified publication issued by the International Chamber of Commerce (ICC). It includes a set of regulations comprising 39 articles that govern the international document credit practice and appl to 175 countries across the globe, constituting approximately USD 1tn of trade per year.
The UCP is the law functioning in documentary credit. It was set up by the international chamber of commerce (ICC) to alleviate the uncertainties produced by individual countries endorsing their national rules on documentary credit practice. The aim was to generate a set of contractual rules that would create homogeneity in that practice, attain worldwide understanding, a mutual understanding and application of documentary credit so that experts would not have to deal with plenty of contradictory national rules. It is the most constructive set of concealed rules for trade ever established.
The first version of the rule was published by ICC in 1933, which was known as UCP 82. It has been revised six times to keep pace with market requirements and practices. Latest version is the sixth revision of the rules and was published in July 2007.
One of the vital reasons for the implementation of UCP 600 is to provide easier language and address the advancement in numerous trades to amalgamate the interpretation and application of documentary credits. There are several reasons for the development of Uniform Customs & Practice for Documentary Credits. It was essential to address the various developments in sectors of banking, transport and insurance, to make the usage of the language easier and uniform – that is to eliminate wording that could lead to inconsistent usage and understanding. It helped to review ICC Opinions and DOCDEX Decisions.
It helps to consider the inclusion of or relationship with, ISBP 645, URR 525, ISP 98 and eUCP.
UCP 600 is not only an essential but vital part of trade and one that is well understood by the experts at Traydstream. From April 2021, all Standard Bank, South Africa, trade transactions within a set threshold have relied on the Traydstream platform to enhance human astuteness to complete all the essential UCP 600 and ISBP trade rule checks as well as cross-document and compliance verifications to identify incongruities.
In a multifaceted and expensive trade finance setting, Traydstream makes your expedition safer, ascendable and lucrative. An AI-empowered platform for trade document checking that digitalizes structured and unstructured rudiments automates trade rules and acquiescence checks with full centralized auditability.
Traydstream’s proprietary trade rules engine has over 300,000 variations and is equivalent to a qualified document checker with full document examination against UCP 600 and ISBP rules as well as uniformity and workability checks. The AI-powered engine incessantly acquires knowledge and can extract as well as infer document clauses, including amorphous fields on letters of credit, permitting clients to suggestively increase their trade processing proficiencies.
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