Article 1

1. The Uniform Customs and Practice for Documentary Credits, 2007 Revision, also known
as UCP 600, are rules that govern any documentary credit (including standby letters of
credit) if the credit explicitly states that it follows these rules.
2. These rules are mandatory for all parties involved unless the letter of credit specifically
changes or excludes them.

Article 2
1. Advising Bank: The bank that informs the beneficiary about the credit, as requested by
the issuing bank.
2. Applicant: The party who asks for the credit to be issued.
3. Banking Day: A day when a bank is open at the location where actions related to the
letter of credit are supposed to happen.
4. Beneficiary: The party who the credit is issued in favor of.
5. Complying Presentation: Documents presented according to the terms of the letter of
credit, these rules, and standard banking practices.
6. Confirmation: When a bank, in addition to the issuing bank, guarantees to honor a
complying presentation.
7. Confirming Bank: The bank that adds its assurance to a credit upon the request or
authorization of the issuing bank.
8. Credit: Any arrangement, irrevocable in nature, where the issuing bank commits to
honor a complying presentation.
9. Honour: Paying according to the terms of the credit, like paying immediately, deferring
payment, or accepting a bill of exchange.
10. Issuing Bank: The bank that issues the credit at the request of the applicant or on its own
behalf.
11. Negotiation: When a nominated bank buys drafts or documents from the beneficiary,
advancing funds before the reimbursement date.
12. Nominated Bank: The bank specified in the letter of credit where the beneficiary can
receive payment, or any bank if the credit is available with any bank.
13. Presentation: Delivering documents under the credit to the issuing or nominated bank,
or the documents themselves.
14. Presenter: The beneficiary, bank, or other party making a presentation.

Article 3
Interpretations
For the purpose of these rules:
1. Singular words also mean their plural form, and vice versa.
2. Once a credit is given, it can't be taken back, even if it doesn't explicitly say so.
3. You can sign a document in various ways, like writing by hand, using a stamp, or
electronically.
4. If a document needs to be legalized or certified, any suitable signature or mark will do.
 5. Banks in different countries are treated as separate entities.
6. Certain words like "qualified" or "official" mean anyone can issue a document except the
person who will benefit from it.
7. Words like "promptly" or "immediately" won't matter unless the document specifically
says they're needed.
8. "On or about" means within five days before or after the specified date.
9. Words like "to", "until", "from", and "between" include the mentioned dates.
10. "Before" and "after" exclude the mentioned date.
11. "From" and "after" exclude the mentioned date when talking about a maturity date.
12. "First half" and "second half" of a month mean the first 15 days and the last 15 days,
respectively.
13. "Beginning", "middle", and "end" of a month mean the first 10 days, the next 10 days,
and the remaining days, respectively.

Article 4

Credits v. Contracts

a letter of credit (LC) is a separate deal from any sales contract it's based on. Banks handling the
LC aren't involved with or bound by that contract, even if it's mentioned in the LC. So, if the
buyer has any issues with the seller or the bank, they can't bring them up when it comes to the
LC. The seller can't use any agreements between banks or between the buyer and the issuing
bank to their advantage.

Additionally, it suggests that banks issuing LCs should discourage buyers from trying to attach
copies of contracts or invoices to the LC itself.

Article 5
Documents v. Goods, Services or Performance

banks handle documents, not the actual goods, services, or performance that the documents
might be about.

Article 6
Availability, Expiry Date and Place for Presentation

a. The credit must say which bank can handle it or if any bank can. If it's available with a
nominated bank, it's also available with the issuing bank. (This means that the letter of credit (LC) must
specify whether it can be used at a particular bank or if it can be used at any bank. If the LC states that it can be used at a
nominated bank, it implies that it can also be used at the bank that issued the credit. In essence, if the LC is available with a
nominated bank, it is also available with the issuing bank.)

b. It says how the payment can be made: immediately, later, by acceptance, or by negotiation.
c. It can't be based on a draft from the buyer.

d.

i. There's a deadline for presenting documents. If there's a deadline for payment or negotiation,
it's the same as the presentation deadline.

ii. The location where it can be used determines where documents must be presented. If it can be
used at any bank, documents can be presented at any bank. It might have additional presentation
locations besides the issuing bank.

e. The beneficiary must present documents before the deadline, unless there are exceptions
mentioned in Article 29 (a).

Article 7
Issuing Bank Undertaking (commitments and responsibilities that the issuing bank takes
on when issuing a letter of credit (LC).

a. If the correct documents are given to the nominated or issuing bank and they meet the
requirements, the issuing bank must pay if:

i. The credit allows for immediate payment, delayed payment, or acceptance with the issuing
bank.

ii. Immediate payment is allowed with a nominated bank, but it doesn't pay.

iii. Delayed payment is allowed with a nominated bank, but it doesn't fulfill its obligation to pay
later, or if it does, doesn't pay on time.

iv. Acceptance is allowed with a nominated bank, but it either refuses to accept a draft drawn on
it or, if it does accept, doesn't pay on time.

v. Negotiation is allowed with a nominated bank, but it doesn't negotiate.

b. The issuing bank is committed to paying as soon as it issues the credit, and this commitment
cannot be changed.

c. The issuing bank promises to repay a nominated bank that has paid or negotiated a complying
presentation and sent the documents to the issuing bank. Repayment for a complying
presentation under a credit allowing for acceptance or delayed payment is due at the agreed time,
whether or not the nominated bank paid early or bought the documents before the due date. The
issuing bank's promise to repay a nominated bank is separate from its promise to the beneficiary.
 Article 8
Confirming Bank Undertaking (commitments and responsibilities that the issuing bank takes on
when issuing a letter of credit (LC).

a. If the correct documents are given to the confirming bank or any other nominated bank and
they meet the requirements, the confirming bank must:

i. Pay if: a. The credit allows for immediate payment, delayed payment, or acceptance with the
confirming bank. b. Immediate payment is allowed with another nominated bank, but it doesn't
pay. c. Delayed payment is allowed with another nominated bank, but it doesn't fulfill its
obligation to pay later, or if it does, doesn't pay on time. d. Acceptance is allowed with another
nominated bank, but it either refuses to accept a draft drawn on it or, if it does accept, doesn't pay
on time. e. Negotiation is allowed with another nominated bank, but it doesn't negotiate.

ii. Negotiate, without any guarantee, if the credit allows for negotiation with the confirming
bank.

b. Once the confirming bank adds its confirmation to the credit, it must honor or negotiate, and
this commitment cannot be changed.

c. The confirming bank promises to repay another nominated bank that has paid or negotiated a
complying presentation and sent the documents to the confirming bank. Repayment for a
complying presentation under a credit allowing for acceptance or delayed payment is due at the
agreed time, whether or not another nominated bank paid early or bought the documents before
the due date. The confirming bank's promise to repay another nominated bank is separate from
its promise to the beneficiary.

d. If a bank is asked to confirm a credit by the issuing bank but doesn't want to, it must inform
the issuing bank right away and may advise the credit without confirmation.
Article 9
Advising of Credits and Amendments (the process by which a bank informs the beneficiary
(usually the seller or exporter) about the existence of a letter of credit (LC) or any changes
(amendments) made to it.)

The advising bank tells the beneficiary about the letter of credit or any changes to it.

If the advising bank isn’t also guaranteeing the credit, it doesn’t promise to pay the beneficiary.

Using Another Bank:

The advising bank can ask another bank to pass on the message to the beneficiary.

The second bank checks the message it got and tells the beneficiary about it.
Being Consistent:

If a bank uses one advising bank, it should stick with that same one for any changes to the letter
of credit.

Notifying About Decisions:

If a bank decides not to tell the beneficiary about the credit or changes, it needs to say so quickly
to the bank that sent the instructions.

When Unsure about Authenticity:

If the advising bank isn’t sure if the message is real, it should say so to the bank that sent it.

Even if there are doubts, the advising bank may still pass on the message but will let the
beneficiary know about its concerns.

Article 10
Amendments

a. A credit can't be changed or canceled unless the issuing bank, confirming bank (if any), and
beneficiary all agree, except as specified in Article 38.

b. Once an amendment is issued, the issuing bank is committed to it immediately. A confirming

bank can also commit to an amendment when it advises it. However, a confirming bank can
choose to advise an amendment without committing to it, in which case it must inform the
issuing bank promptly and inform the beneficiary in its advice.

c. The original terms of the credit (or any previous amendments) stay in effect for the beneficiary
until they accept the amendment. The beneficiary needs to notify the bank that advised the
amendment whether they accept or reject it. If the beneficiary doesn't respond, presenting
documents according to the credit and any unaccepted amendments counts as accepting the
amendment, and the credit is changed at that point.

d. A bank that advises an amendment must tell the bank that sent the amendment about any
acceptance or rejection notification.

e. The beneficiary can't accept only part of an amendment; it's considered a rejection of the
whole amendment.

f. If an amendment says it will take effect unless the beneficiary rejects it within a certain time,
this condition is ignored.