UCP 600 is a set of rules established by the International Chamber of Commerce in 1933 that govern documentary credits, binding all parties involved unless modified. It defines various terms relevant to international trade such as advising bank, beneficiary, and issuing bank, as well as methods of document authentication and interpretation of timelines. The document outlines the irrevocable nature of credits, presentation requirements, and specific terms used in trade transactions.

2. UCP 600 Presented by : Malik Allah Nawaz Junaid Zamir

3. Article 1 Application of UCP

4. What is UCP? It is rules that apply to any documentary credit. This practice has been standardized by the ICC (International Chamber of Commerce) by publishing the UCP in 1933. They are binding on all parties unless expressly modified or excluded by the credit.

5. Documentary credit A standard, commercial letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable (cannot be amended or cancelled) payment undertaking. Letters of credit are generally used in International trade.

6. Article 2 Definitions

7. Definitions Advising bank Is the bank that advises the credit at the request of the issuing bank Applicant Is the party on whose request credit is issued Banking Day The day on which bank is open and performing its operations. Beneficiary The party on whose name credit is issued. Complying Presentation It is a presentation that is in accordance with the terms and conditions of the credit

8. Confirmation Means a definite undertaking of the confirming bank. Confirming Bank Means the bank that adds its confirmation upon the issuing bank’s authorization/request. Credit An arrangement that is irrevocable and constitutes definite undertaking. Honor To pay at sight if the credit is available by sight payment. To pay at maturity if the credit is available by deferred payment. To accept bill of exchange. Definitions

9. Issuing Bank The bank that issues a credit at the request of applicant Negotiation Purchase of draft/documents by the nominated bank by agreeing to advance funds to the beneficiary. Nominated Bank The bank with which the credit is available. Presentation Delivery of documents under a credit to the issuing bank. Presenter Is a beneficiary either bank or other party that makes a presentation. Definitions

10. Article 3 Interpretations

11. Interpretations A credit is irrevocable even if there is no indication to that effect. A document may be signed by handwriting, stamp, symbol or any other mechanical or electronic method of authentication. Document should be legalized , certified by signature, stamp or label Branches of bank in different countries are considered to be separate banks

12. Interpretations Terms such as first class, well known, qualified, independent, official or local are used to describe the issuer of a document. Words such as prompt / immediately / as soon as possible will be ignored unless required to be used in the document. Words “on or about” will be interpreted as a stipulation that an event is to occur during a period a of 5 calendar days or before/after the 5 calendar days or specified date. Words to / until / till / from / between whenever are used to determine a period of shipment and word before / after exclude the date mentioned. Words from / after determine maturity date exclude the date mentioned.

13. Terms 1 st half and 2 nd half of a month shall be considered as 1 st – 15 th & 16 th to the last day of the month (all dates inclusive). Terms beginning / middle / end of month shall be considered as 1 st – 10 th , 11 th – 20 th and the 21 st to the last day of the month (all dates inclusive). Interpretations

14. END THANK YOU!