eUCP(Electronic Uniform Customs and Practice for Documentary Credits)

Introduction to eUCP

The International Chamber of Commerce (ICC) has recently published its final text of the revised Electronic Uniform Customs and Practice for Documentary Credits ( eUCP Version 2.0) and its very first-ever supplement of the Uniform Rules for Collections URC 522 ( eURC Version 1.0).

If we look at the according to the  ICC website , eUCP Version 2.0 supplements the ICC’s UCP No. 600 (2007 Revision) “for accommodating presentation of electronic records alone or in combination with paper documents where you can see credit indicating that it is subject to the eUCP”, while eURC Version 1.0 supplements the ICC’s URC 522 (1995 Revision) is used for electronic presentation or mixed electronic and paper document presentation “where a collection instruction indicates that it is subject to the eURC”.

The ICC says that the eUCP and eURC rules were intentionally developed along with a version number in order to enable regular updates without giving any impact to other existing ICC rules, in turn “reducing any time required to develop potential identified revisions in the future”.

What is eUCP?

The Uniform Customs & Practice for Documentary Credits (UCP 600) is basically considered as a set of rules that has been made and agreed by the International Chamber of Commerce (ICC), which apply to all finance institutions which issue Letters of Credit. eUCP is used by letter of credit practitioners all over the world, UCP have been declared the most successful private rules for trade ever developed. Bankers, traders, lawyers, transporters, academics and all those people who deal with letter of credit transactions worldwide will have to refer UCP 600 on a daily basis.

eRules and the eUCP

In order to develop the digitalisation of trade finance practices, ICC has recently issued new electronic rules that are also known as (eRules); they came into action on the 1st of July. The eRules will be continuously checked and will be updated to reflect future technological developments and trends that emerge in trade finance. ICC will ensure that the eRules remain applicable to all the banks that are related to trade market and other trade finance institutions. To give some Acknowledgement to the significance of these rules for the work of trade finance professionals, ICC had made the full text of eURC and eUCP which is also available online. ICC has also published a deep guidance of the changes in the eUCP v1.1 to v2.0 and the newly drafted eURC v 1.0.

Also the content that has been mentioned in the eRules will be constantly monitored to make sure that they work in the context of electronic documentation and trade. The eUCP will be constantly reviewed by trade practitioners so that they can give feedback updates and monitor eUCP in practise.

What has changed in the electronic presentation for UCP (eUCP)?

Article e1

• The Scope of the Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentations (“eUCP”)
• Heading re-worded in order to add the shorthand rendition “eUCP”
• Minor structural changes
• Clarification of the fact that if an eUCP credit does not indicate the applicable version of the eUCP, it is a subject to the latest version
• Addition of the requirement in order to add a physical location of a bank

Article e2

• Relationship of the eUCP with the UCP
• Minor structural changes
• Minor structural changes

Article e3

• Definitions
• Minor structural changes
• Format of each term reflects that used in UCP 600
• Addition of “data processing system” to the “place for presentation”
• New definition for “Presenter”
• New definition for “Data corruption”
• New definition for “Data processing system”
• Definition of “Electronic record” has been expanded to include logically associated information
• Deleted the word “traditional” from the definition of “paper”
• Definition of “Received” is now referring to a data processing system, and includes added reference to view and examine.
• New definition for “Re-present” and “re-presented”

Article e4

• Electronic Records and Paper Documents v. Goods, Services or Performance
• New article

Article e5

• Format
• Minor structural changes

Article e6

• Presentation
• Structural and grammatical changes
• ‘Beneficiary’ has been amended to ‘presenter’
• More precise explanation as to which banks are impacted
• Clarifying the fact that the notice of completeness acts as notification that the presentation is complete
• Clarifying the fact that the period for examination commences upon receipt of the notice of completeness
• A notice of completeness is now not required in forwarding of electronic records by a nominated bank to a confirming or issuing bank
• Additional methods are also added now in order to identify an eUCP credit
• In the event that the expiry date or last day for presentation are extended, it should be indicated in the covering schedule that this is occurring according to the rules and regulations.

Article e7

• Examination
• Sub-articles moved from the previous article e7 (Notice of Refusal)
• Minor structural changes
• Expansion to nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank
• Clarifying the fact that the forwarding of electronic records by a nominated bank indicates that it has satisfied itself as to the apparent authenticity of the records
• Addition of a sub-article in order to address the inability of an issuing bank or confirming bank to access electronic records already found compliant by a nominated bank

Article e8

• Notice of Refusal
• Minor structural changes
• Sub-articles moved for relevance to new article e7 (Examination)

Article e9

• Originals and Copies
• Minor structural changes

Article e10

• Date of Issuance
• Change of emphasis in that an electronic record must now be dated

Article e11

• Transport
• Addition of ‘taking in charge’ and ‘goods accepted for carriage’
• Minor structural changes

Article e12

• Data Corruption of an Electronic Record
• Title of article amended for preciseness
• Clarifying the role of the banks
• Minor structural changes

Article e13

• There will be an Additional Disclaimer of Liability for Presentation of Electronic Records under eUCP
• Minor structural changes
• Reference of a data processing system
• Banks are now liable for their own data processing systems