Significant feedback was received on each of the potential revision issues.
A number of key recommendations are highlighted below. These will be addressed in the 2nd draft, currently with ICC National Committees.
SANCTIONS
Proposed that a new Preliminary Consideration be added outlining that the ICC discourages the use of a sanction clause in a credit. Whilst not directly pertinent to document examination, sanctions clauses may have a tangential impact on the examination process.
The Legal Committee have finalised their review of the existing "Sanctions" guideline which clarifies that sanctions operate at the payment level and not at the examination level. As such, they should no longer be considered as non-documentary conditions. Accordingly, this issue is recommended not be included in the revision whilst the scope of ISBP remains pertinent solely to the examination of documents.
EXCESSIVE DETAIL
Proposed that credits which contain excessive details should be avoided as these often cause unintended consequences and payment delays.
Ensures alignment with the "Guidance Notes for Documentary Credit Formats".
PREVIOUSLY ACCEPTED DISCREPANCIES
The fact that a bank may have previously accepted discrepant documents, with or without an applicant waiver, does not bind that bank to accepting a similar discrepancy on any future drawing unless the law of the country applicable to that bank states otherwise.
Alignment with ICC Opinions R332 (TA212), R556 (TA525), and TA936rev.
IN CONTEXT WITH
As used in UCP 600 sub-article 14 (d), the text "when read in context with" means that the requirements of the documentary credit, the structure and purpose of the document itself, UCP 600, and international standard banking practice need to be assessed, understood and be taken into consideration in determining compliance of a document.
Alignment with the "Commentary on UCP 600", and TA Briefing No. 12.
AMBIGUITY
Proposed to extend Preliminary Consideration v) also to a confirming bank, which confirms a credit which is ambiguous or conflicting.
It would appear that a majority concern exists in extending this Consideration to the confirming bank. Accordingly, recommended additional text added at end of Preliminary Consideration v) in respect of the issuing bank; this then applies solely to the issuing bank.
ALL DOCUMENTS
Include reference to "all documents" in the opening paragraph of A19.
By consensus, recommended to include reference to "all documents" in the opening paragraph of A19, and add new sub-paragraph A19 (h).
WITHOUT DELAY
By consensus, recommended to add New General Principle - A42 Without delay.
Alignment with Technical Advisory Briefing No. 2 - Meaning of "without delay" in UCP 600.
NON-DOCUMENTARY CONDITIONS
By consensus, recommended to add new paragraph at the end of General Principle A26.
Alignment with Technical Advisory Briefing No. 1 - Non-documentary conditions in Documentary Credits subject to UCP 600.
DIRECT PRESENTATION
Alignment with Technical Advisory Briefing No. 9 - Direct presentation of documents to an Issuing Bank under a documentary credit subject to UCP 600.
Recommended as not for inclusion in the revision as strictly related to the presentation of documents, and has no direct impact on examination.
DETAILED
The notion of "detailed" in front of a document/certification should have no meaning and be disregarded unless otherwise defined in a credit.
Recommended consensus to include reference to "detailed" in the opening paragraph of A19, and add new A19 sub-paragraph (i).
MANUALLY
Within General Principle A31 (b), the word "manually" adds nothing to the context.
Recommended consensus to update General Principle A31 (b).
USE OF DRAFTS
New paragraph to align with the Guidance Paper "Use of Drafts under Documentary Credits", usage to be curtailed.
Recommended consensus to add new opening paragraph B1- Recommendation.
REQUIRMENT FOR DRAFT
In the event that a documentary credit is issued using an authenticated SWIFT message, the requirement for a draft, if needed under a documentary credit, should only appear in the designated fields of the SWIFT message.
Recommended consensus to add new paragraph B1 c) under "Basic Requirement" - B2 c) in updated version.
ENDORSMENT OF DRAFT
A draft is to be endorsed, unless required by the credit.
Recommended consensus to update paragraph B15 - B16 in updated version.
TITLE OF INVOICE
Alignment with Technical Advisory Briefing No. 7 - Title of Invoice.
Recommended consensus to add new paragraph C1 c) under "Title of an invoice".
FREE OF CHARGE
Address the issue which was raised by withdrawn ICC Opinion TA927rev2, and provides a workable and transparent approach.
Recommended consensus to update paragraph C13.
DIGITAL
No current market practice exists for eUCP processes, therefore recommended that digital should not be included in ISBP at this stage.
OTHER ISSUES
A number of further issues have also been raised, all of which are under consideration.
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A revised draft of ISBP 821 has been sent to ICC National Committees for feedback by 31 March 2025.
We will provide more details as the project moves forward.