745 ISBP What's New?

Nguyen Huu Duc

(The article was published print SBV Banking Review April 2013 Issue No. 8)

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Along with UCP 600, ISBP (International Standard Banking Practice for the Examination of Documents under Documentary Credits - Habits Bank International Standards Test under letters of credit vouchers) be considered as a handbook indispensable guide for banks, import-export companies, the logistics experts, insurance companies ... in the preparation and examination of documents presented under letters of credit (L / C).

The first version was called ISBP 645 ICC Banking Commission published in 2002. After 4 years of use, the Commission decided to conduct Bank ISBP 645 amendments and adopted the 2007 version called ISBP 681.- However, after almost two years of application, ISBP 681, in extent, has revealed many deficiencies and not meet the actual requirements of the inspection documents under L / C, therefore, in 3/2009 meeting in Dubai, ICC Banking Commission again decided recently amended on June ISBP 681.- 17/04/2013 ICC Banking Commission meeting in Lisbon (Portugal) adopted the The final draft ISBP ISBP called 745.

Immediately after the meeting of the ICC Banking Commission in Lisbon, Kim Sindberg - Members of the Drafting Group ISBP 745 - shared with the writer final draft was ISBP 745 ICC Banking Commission approval. Expected to take some time to come the new version 745 ISBP ICC Banking Commission officially published and applied force. The post also eager to be shared with colleagues and interested readers some new domestic notable ISBP ISBP than 681 745.

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PRELIMINARY ASSESSMENT OF INITIAL

We can say ISBP 745 version is amended careful than 681 ISBP both content and form. Drafting Group include Gary Collyer (British), RV Balasubramani (India), Graham Christiansen (England), Carlo Di Ninni (Italy), Wolfgang Heiter (Germany), Ed Jongenelen (Netherlands), Iqbal Karmalli (UAE), David Meynell (England), Rene Mueller (Switzerland) Kim Sindberg (Denmark), Charnell Williams (USA) and Zha Zhongming (China) took nearly 4 years to modify ISBP 681.

Learning from but disputed documents as well as from the real problems in the inspection documents presented under L / C which banks have reflected and have been for the ICC Banking Commission is answering in time Recently, the Drafting Group ISBP 745 rewrote the whole of ISBP guides paragraphs 681, adding a variety of situations and specific examples to illustrate more clearly. Besides, the group also prepared 745 additional ISBP testing more guidance documents previously ISBP 681 without a guide, for example, packing list (packing list) lists the weight (weight list), witness Certified by the beneficiary (Beneficiary 's certificate), the certificate of analysis (analysis), inspection (inspection), medical (health), phytosanitary (phytosanitary), the number (quantity) and quality ( quality) and other certifications. Therefore, the form, the version will be thicker ISBP 745 ISBP 681 doubles.

745 ISBP thoroughly solve the problems that people check documents presented under L / C often encountered before. ISBP 745 will certainly reduce disputes related documents. The writer of this article believe ISBP 745 will continue to be accepted as a handbook indispensable bedside of those who do work related to the preparation and checking documents presented under the L / C.

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NEW POINTS RELATING TO THE INSTRUCTIONS IN THE OPENING

ISBP 745 must be read in conjunction with UCP integral and 600:

Unlike ISBP 681, 745 ISBP immediate confirmation at the scope of application of that ISBP 745 must be read in connection and integral UCP 600.

Insists on showing that ISBP 745 is part of the UCP 600. Business Bank left the bases ISBP 745 to check the documents and can cite the appropriate section of ISBP direction 745 as a basis to refuse if the presentation is inconsistent with the terms and conditions of the L / C, UCP 600 and 745 ISBP.

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SOME NEW FEATURES RELATING TO GENERAL PRINCIPLES

Abbreviations

745 additional guidance ISBP case L / C use abbreviations are allowed presented documents showing acronyms or any other abbreviations have the same meaning or express words are spelled in full or opposite.

For the sign "/", ISBP 745 additional examples to clarify meaning. If the L / C rules "red / black / blue" without further explanation, it means that only red or black or blue or any combination of these colors can be accepted ring.

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The certificate, the testimony, the testimony and the statement

681 ISBP header record is testimony and testimony (Certifications and Declarations), extending 745 ISBP title as certificates, testimony, testimony and Declaration (Certificates, Certifications, Declarations and Statements).

This item ISBP 681 Guide only includes a paragraph shall ISBP 745 3 segments

with specific examples to clarify the meaning:

If the L / C required to present a certificate, testimony, testimony or statement, the documents that must be signed.

Certificate, testimony, testimony or statement shall include the date or not depends on the type of certificate, testimony, testimony or statement is requested, words and terms requirements expressed in vouchers.

For example, L / C required to present a certificate issued by the carrier or issuing agent stating that the ship does not exceed 25 years, the certificate can prove conformity by demonstrating:

(I) date or year the vessel is closed, and the date or year does not exceed 25 years prior to the date of delivery or the year in which the delivery is made, in this case does not need to record the release date, or

(Ii) the terms listed in the L / C, in this case requires a release date, thereby showing that until the day that the vessel shall not exceed 25 years.

When the certificate, testimony, statements or claims in other documents will be signed and dated, it does not require a signature and date when the certificate separately, testimony, testimony or statement was issued and signed by the same unit.

Vouchers and needs to fill the boxes, cases and vacancies

ISBP 745 additional instructions that if vouchers have a cell, or the blank field to fill in the data, it is not necessary to enter the data into the cell, the school or that vacuum. For example, it is not required to enter data into the "accounting information" (accounting inforrmation) or "information processing" (handling

information) often seen on the waybill no.

These terms are not defined in UCP

Compared with ISBP 681, 745 ISBP adding the following terms:

"Third party documents not acceptable" (documents from third parties are not accepted) - does not make sense and would not be interested.

"Shipping company" (the shipping company) - when used in the context of the person issuing a certificate, testimony or testimony relating to transport documents - means any person after here: the carrier, master, or when a bill of lading presented charterer, the captain, the ship owner or charterer, or any entity that is identified as the agent of any person on regardless of whether that person is released or sign transport documents presented or not.

"Documents acceptable as hiển" (documents can be accepted as presented) - is a presentation may include one or more of the specified documents as long as they are presented within the validity period specified in L / C and the amount paid in the value of L / C. If not, those documents will not be checking the conformity according to UCP 600 even when they are presenting the correct amount of the original or copy of the request or not.

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Language of documents

Language vouchers prescribed ISBP 681 vouchers issued by the beneficiary must be in the language of L / C. If the L / C provisions may accept vouchers issued by

two or more languages, the bank indicated, when informed L / C may limit the number of languages is acceptable as a condition committed in the L / C. 745 ISBP revised guidance on the language of the document complete and clearer. Whereby:

When the L / C provisions language documents presented, the data is L / C or UCP 600 requirements must be shown in that language.

When L / C is not specified in the language of the documents, the documents presented may be issued in any language;

When L / C allows two or more languages are acceptable, the confirming bank or banks designated to act in accordance with the specified language may limit or the number of languages is acceptable as as a condition of its commitments in the L / C, and in this case, the data in these documents shall be the language or languages acceptable;

When L / C allows a document containing the data in two or more languages are acceptable, the confirming bank or banks designated to act in accordance with the specified language may limit or number Language can accept as a condition of its commitments in the L / C, the bank is required to check the data in all acceptable language shown on the voucher.

The bank does not check the data are expressed in languages other than the language required or permitted in the L / C.

Name, organization, seal and certify the legality, Endorsement and content printed on the voucher, such as, but not limited to title, maybe in a language other than the language is required .

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Non-documentary conditions and conflicting data

745 ISBP additional guidance on the case of L / C provisions on non-documentary conditions. Accordingly, when L / C stipulated a condition where not specified documentation to demonstrate compliance with such document (called non-documentary conditions), it is not necessary to demonstrate compliance with the conditions on any documents that are prescribed. However, data on stipulated documents are not in conflict with non-documentary conditions. For example, L / C expressed packing conditions are "printed wooden packing Cases" but does not require such conditions shown on any documents specified, but the presentation is different from the present packing packing conditions stated in the L / C is considered to be conflicting data.

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Original and copy

Determination guide documents presented are original or replica, ISBP 681 recommendations ICC Banking Commission refer to Policy Statement, Document 470/481 (rev) "The Determination of an Original Document 500 in the context of UCP sub -article 20 (b) ", while 745 gave direct ISBP some contents of Document 470/481 (rev) into their own instructions.

The signature

Guide to the signature of 745 ISBP ventilation and clearer. Accordingly, the documents do not necessarily signed by handwriting. Documents may be signed by facsimile signature (signature printed or scanned signatures), signature perforation, signed by stamp, symbol or by any means electronic authentication or mechanical.

A request documents must be "signed and sealed" or a similar requirement will be satisfied by a signature in the form above and sign the name of the unit to be typed, stamped, handwritten, printed existing or scanned on vouchers ...

The statement on the document, such as "This document has been authenticated electronically" (This document has authenticated electronic side) or "This document is issued by electronic means and does not require signature" ( This document opens inside Produced by electronic means again and requires no signature) or by the terms have the same meaning, can not present itself as an electronic authentication method in accordance with the requirements of Article 3 UCP signature 600.

The statement on the document showing that the authentication can be done through a specific reference to a website (URL) constitute a form of electronic authentication in accordance with the requirements of signature in article 3 UCP 600. Banks will not visit those sites for authentication.

If the sign is signed on behalf of the record (for or on Behalf of) a subsidiary of the issuer, the signature which is considered the signature of the issuer.

Car vouchers, school or place to sign does not necessarily have to be signed. However, if the documents have the sentence "This document has no value unless it is followed up or signing" or similar statements from, the umbrella, school or place that must be signed.

Vouchers combination

ISBP 745 additional instructions:

Vouchers are L / C request represents more than one function can be presented with a voucher or by separate documents showing completion of each function. For example, L / C required to present a Certificate of Quality and Quantity will be satisfied by presenting a voucher or with a Certificate of Quality and a Confirmation Number as long as each document is expressed Its functions and presented the correct amount of the original and copies as required by the L / C.

ISSUES DRAFTS

The problem there is the draft documents are required to present under L / C or not, and flaws in the draft may constitute a reason to refuse payment or not has become a subject of debate without an end although there ISBP terminated by the regulations on the calculation of draft and maturity but not confirmed drafts Is documents presented under L / C and errors in the draft have constituted reason to bank refused pay.

3rd Draft asserted flaws in the draft is not related to maturity, the maturity date, amount, endorsement ... not making invalid votes. However, the draft then ISBP 745 and withdrew this claim.

SOME POINTS CONNECTED WITH THE NEW BILL

Issuers bill

681 ISBP no guidance on the invoice issuer. ISBP 745 additional guidelines to clarify Article 18 (a) (i) UCP 600 rules invoice issuer. Accordingly, the bill must be

issued by the beneficiary, or by the second beneficiary in the case of L / C has been transferred. When the beneficiary or beneficiaries second rename and L / C was recorded the old name, the invoice can be issued by the new company name as long as stating, "formerly known as [name of person The first beneficiary or beneficiaries Monday] or verbally with similar meaning.

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Payment or delivery several times

In the tutorial section of the bill, 681 ISBP only brief instructions regarding delivery several times, according to which, if the L / C request delivery several times, each time delivery to suit the delivery schedule . ISBP 745 additional instructions on payment several times, detailed as follows:

When the payment and delivery many times (drawing or shipment by installments) in the time period specified in the L / C, and any delivery times does not get paid or not been done in terms of time allow for delivery times, then L / C is no longer worth paying for delivery time and for any subsequent deliveries. The time period is the listing date determined the start date and end date for each delivery. For example, L / C request delivered 100 cars in March and 100 in April automobile as an example two period starts on 1 March and 1 April and end on 31 sequential Three and 30 April.

When payment and partial shipments (partial drawings or shipments) are permitted, allowing payment in installments or delivery in each delivery.

When L / C stipulated payment schedule and delivery by just recording some later date, rather than between an amount prescribed time limit, it is not repeated delivery schedule as prescribed by UCP 600 and Article 32 shall not apply. The presentation will comply with directives relating to the schedule and Article 31 UCP 600.

When payment and partial shipments are permitted, any number of payments or delivery occurs on or before the date of payment or at the latest delivery that is allowed.

Obviously with such guidance, help people check ISBP 745 vouchers can distinguish clearly the case of payment and partial shipments (partial drawings or shipments) and case payment and delivery is much Times (installment drawings and shipments) are prescribed in Article 31 and 32 UCP 600 which is very misleading.

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SOME OF NEW DOCUMENTS RELATING TO THE TRANSPORT CONDITIONS SET FORTH IN 19-25 UCP 600

ISBP 745 very detailed instructions on checking the transport document, with many new features and changes compared with 681 ISBP that can only fully presented in a separate article. In this article, the writer just go through some of the most common new point for all kinds of transport documents.

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Released, carriers, identify carriers and sign the bill of lading

681 ISBP just sign the bill of lading instructions, while ISBP 745 extended release guidelines, carriers, identify carriers and sign the bill of lading. Accordingly, on the signing of the bill of lading, ISBP 745 additional instructions:

When lading (multimodal, sea, air) or transport documents (road, rail, inland waterways) are signed by a branch of the carrier by name, the signature is treated as signed by the carrier.

ISBP 745 additional regulations on the case of L / C contains provisions not accept consignment of delivery (Freight Forwarder's Bill of Lading / Multimodal Bill of Lading are not acceptable) or not accept consignment consolidation (House Bill of Lading / Multimodal Bill of Lading are not acceptable). Accordingly, this provision does not make sense in the context of the title, format, content and form of lading signed unless the L / C has specific requirements about how the consignment was released and signed unless L / C has specific requirements about how the consignment was released and signed.

The bill of lading may be signed by any unit other than the carrier or the captain.

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Notes loading on board, the date of delivery, the first leg of transportation, destination and port of loading

681 ISBP just guiding notes on board, while comprehensive guide Notes loading on board, the delivery date, transportation initial stage where the consignee and the port of shipment. In particular, 745 ISBP guidance notes on loading on board (on board notation) very detailed matching the Commission's proposals concerning the Bank requirements for loading notes in Document No. 470 / 1128rev final - 22/04/2010 (Document No.470 / 1128rev final - 22 April 2010 - Recommendations of the Banking Commission of the Requirements print respect for an On Board Notation).

On the date indicated on the document, 745 ISBP clearer rules ISBP 681.- Accordingly, the original transport document, depending on type, must release date (a date of Issuance), loading notes marked day (a dated on board notation), date of delivery (a date of shipment), dated receipt to delivery (a date of receipt for shipment), date of shipment or carrier (a date of dispatch or carriage) or is days of receipt (a date of taking charge or a date of printing pickup or receipt).

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Country name, port name on the bill of lading

According ISBP 745 national name need not appear on the transport document whether L / C stipulates national name attached to the place of shipment, the place of loading or port of loading, port of discharge, final destination.

For air waybill, allow bearer ISBP 745 port and discharge using code IATA (International Air Traffic Association) instead of using the full name of the airport (for example, instead of Los Angeles LAX ).

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The consignee, notify party

Concerning information about the consignee (consignee) and the notification (notify party) on the transport document, in addition to similar ISBP guide 681, 745 ISBP additional guidance as follows:

When L / C providing details of one or more notification (notify party), transport documents may also show the details of one or more additional messages.

When L / C does not require a notified party shown on the transport document but the details of the person requesting issuance of L / C is shown on the notice, and these details including address details only and the contact details, we are not in conflict with the details outlined in the L / C.

When L / C request transport documents showing the goods are sent to or by the order of the "Issuer" or "requests issued L / C" or inform "people ask issuing L / C" or "Issuer", the documents must show the name of Issuer, or who require L / C but do not need to show details of addresses and contact details of the Issuer or the person requesting issuance of L / C.

When the details of the address and contact details of the person required to demonstrate that some of the details of the consignee or the notice, they must not conflict with the details outlined in the L / C .

Article 19 of UCP 600

Concerning Article 19 of UCP 600, 745 ISBP said when asked to show an LC transport document is not evidence multimodal transport, but LC showed more journeys using a method, eg when the places of delivery or final destination is an inland place, or when the recording port of shipment or discharge is actually a place in the hinterland rather than a port of the Article 19 UCP 600 used to examine that document.

Note that the instructions of ISBP 745 on this issue in stark contrast with the views of the former ICC.

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Delivery of goods have more than one consignment

745 ISBP adding examples to clarify:

A bill of lading is not clear that the goods indicated on the bill of lading which will only be delivered upon presentation of one or more other lading, unless all references lading presented once with a LC.

For example, if the bill of lading stating that the "Container XXXX belongs YYY and ZZZ lading number and can only be delivered to a trader when all of merchants of lading that are presented" (Container XXXX is Covered by B / L No. YYY and ZZZ and can only be released to a single merchant upon presentation of all bills of lading of mà merchant), the trader must produce a bill of lading or other related to the new container reference by consignee.

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SOME OF NEW DOCUMENTS RELATING TO INSURANCE

Issuers insurance

In addition to the same guidelines as ISBP 681, 745 ISBP for more examples to clarify insurance issuers.

Proof of insurance must be issued or signed by an insurer or the insurer (underwriter) or their agents or authorized person (proxy) of them. For example, an insurance document issued and signed by the "AA Insurance Ltd." deemed to have been signed by an insurance company.

When the issuer is identified as "insurance", the insurance document does not need to show that the insurer or the insurer.

Insurance document is signed by an agent or authorized person must sign the insurance company or insurance agent or a person authorized to sign on behalf of, unless the insurance company's name or the insurer were identified elsewhere on insurance documents. For example, the name "AA Insurance Ltd" has been realized on the insurance document are insured, the documents may be signed "John Doe (by proxy) on Behalf of the Issuer" (John Doe - authorized by - on behalf of the insurer) or "John Doe (by proxy) on Behalf of AA Insurance Ltd" (John Doe - would be authorized - on behalf AA Insurance Ltd.).

Insurance document which shows that insurance is provided by more than one insurer may be issued and signed by a representative or authorized by the behalf of all those insurance or signed by a the insurer on behalf of all co-insurance (co-insurers). For example, "AA Insurance Ltd., the leading insurer for [and on Behalf of] the co-insurers" (AA Insurance Ltd., a wholesale insurance on behalf of the co-

insurance). In this case, proof of insurance without showing the names of the insurance contract, not the expected percentage of their holdings in insurance.