ICC Rules (UCP 600, eUCP, ISBP)

Description: Master key UCP 600 articles (e.g., Article 7, 8) to ensure payment security in letter of credit (LC) transactions. Avoid disputes with overseas buyers by staying compliant.

Fact: Over 11% of global trade uses LCs governed by UCP 600, per ICC.

2-Minute Read Content: Indian exporters rely on letters of credit (LCs) to secure payments, and UCP 600 by the ICC standardizes these transactions.

• Here are five critical articles to know:

  • Article 7 ensures Issuing banks honor compliant documents, protecting you if buyers default.

  • Article 8 ensures Confirming banks honor compliant documents even if the Issuing Bank fails.

  • Article 14 sets a 5-day review period for the Banks, speeding up payments.

  • Article 16 outlines discrepancy handling, helping you resolve issues fast.

  • Article 38 makes LCs transferable, ideal for intermediaries. Non-compliance can delay payments by weeks. Always specify “Subject to UCP 600” in LC terms and verify documents against UCP and ISBP guidelines. Stay informed to avoid costly disputes and streamline exports.