UCP 600

Letters of credit, or documentary credits, are designed to reduce the payment risks and costs to buyers and sellers in international trade. For cross-border transactions, it is important that the same standards apply when it comes to the issuance of documentary credits. The International Chamber of Commerce (ICC) has established guidelines in order to mitigate risks arising from discrepancies in the definitions, obligations, and roles of the different parties involved in letters of credit. These guidelines are known as the Uniform Customs and Practice for Documentary Credits (UCP). The current version of these guidelines is UCP 600.


This course provides the background to the development of UCP 600 and describes how documentary credits are structured according to the ICC guidelines. The basic principles and processes are covered, as are the roles of the parties involved in documentary credit transactions.


    On completion of this course, you will be able to:

    Outline the background and history of UCP 600

    Describe the essentials of documentary credits under UCP 600)


    Topic 1: Background to UCP 600

    General Definition of Documentary Credits

    Documentary Credits under UCP 600

    History of UCP

    o From UCP 500 to 600

    Topic 2: Essentials of UCP 600 & Documentary Credits

    Parties to Documentary Credit Transactions

    o Applicant

    o Beneficiary

    o Presenter

    o Advising Name

    o Confirming Bank

    o Nominated Bank

    Principles Governing Documentary Credits

    o Independence

    o Compliance with Applicable Requirements

    Documentary Credit Cycle/Process under UCP 600

    o Stage 1: Initiation of the Documentary Credit Transaction

    o Stage 2: Advising the Credit

    o Stage 3: Presentation of Documents

    o Stage 4: Discharge of the Obligation to the Beneficiary

    o Stage 5: Discharge of the Obligation of the Issuing Bank

    Obligations of Names under UCP 600

    o Issuing Bank

    o Confirming Bank

    o Nominated Bank

    o Advising Bank

    Standard for Examination of Documents

    Key Article Changes from UCP 500 to UCP 600



    50 Minutes

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