Another issue that has been raised in the UCP revision consultancy process relates to the inclusion of copies of contracts in documentary credits.
UCP 600 sub-article 4 (b) discourages any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contract, proforma invoice and the like.
However, comment has been made that such practice should be banned completely on the basis that when such details are included within credits, it can be very complicated for the beneficiary to comply.
In this respect, reference should be made to the ‘Commentary on UCP 600' (ICC Publication no. 680) wherein it was recognised there was nothing that could be stated in the rules that would prohibit a credit from being issued with one of the attachments mentioned in sub-article 4 (b). In any event, an advising bank can elect not to advise a credit if they find this unacceptable.
As the above publication also highlights, it should additionally be noted by applicants that incorporation of such an attachment offers limited protection with regard to the goods and their standard or quality: such issues can be managed by requiring the appropriate documents and indicating the data that is to appear therein.