This book contains a detailed analysis of the articles of UCP 600 while tracing the process of its evolution from UCP 500 to UCP 600 and reconstructing the significant stages up to its final transformation. For information of laypersons like me, UCP means Uniform Customs and Practice for Documentary Credits. Beginning with the various stages of transition of UCP 500 right up to its present-day version of UCP 600, the book highlights the changes introduced by the International Chamber of Commerce (ICC) and underscores their implications for the industry.
The book is written by one who started his banking career at the State Bank of India group with a major part of his professional life spent in international banking and international trade and treasury at several branches in India and abroad.
Part I of the book, comprising three chapters, deals with the compulsions for the revision of the initial considerations that influenced the revision process. UCP 500 had been working well for more than 10 years when the ICC decided to initiate the process of revising the document. The trades and industry had become accustomed to its provisions and begun to grasp the nuances of its various Articles while accepting the clauses, warts and all. The ICC took the initiative to explain how the practices articulated in the UCP were to be applied by the users of documentary credits. The aim was to reduce discrepancies in documents, reduce rejections and delays and thus improve the international trade environment. Revisions were needed because many developments had taken place since the UCP 500 was issued and to evaluate them against the present-day requirements, address other issues as necessary and in the process come up with a more effective version of the UCP.
The chapters in this part outline the process, the issues that came up for consideration, the manner in which these issues were resolved, the reasons for accepting or rejecting certain changes, highlight the changes that were finally made in the UCP and the reasons for the same. The evolution of UCP 600 is an interesting story that is told in detail. It provides the essential background to the Articles that are the very foundations of documentary credit operations today. Without this background information, the study of the revised Articles remains incomplete and so does the understanding of UCP 600.
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