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Non-documentary conditions

17/10/2019

On occasion, suggestions have been made that UCP 600 sub-article 14 (h) be modified. Such requests have been based upon the observation that, in practice, this stipulation often leads to poor credit wording by the issuing bank and consequent discussions surrounding discrepancies during the presentation of documents.

 

Just to recap, sub-article 14 (h) states that if credits include conditions that do not stipulate the document to be associated with such a condition, then the (non-documentary) condition will be unheeded. 

 

The data in documents will still be subject to review under sub-article 14 (d) to ensure that any data is not conflicting. 

 

The fact is that the issue covered by sub-article 14 (h) can be easily resolved by issuing banks and applicants ensuring that any term or condition stated in the credit is clearly linked to a stipulated document. 

 

 

 

 

 

 

 

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