An article-by-article analysis of eUCP variant 2.0 and eURC version 1.0 to explain for the new guidelines.
|Definitions||UCP 600||eUCP Version 2.0|
|Definitions||Where not defined or amended in the eUCP, definitions given in UCP 600 will continue to apply||Where terms are also used in UCP 600, definitions are updated for application to an electronic record|
|Scope||Paper documents (and electronic records if strictly defined, although UCP 600 only provides limited protection)||Electronic records alone or in combination with paper documents|
|Application||UCP 600||UCP 600 & eUCP Version 2.0|
|Relationship||UCP 600||In event of conflict, eUCP prevails|
|Presentation of only paper documents||UCP 600||UCP 600|
|Documents examined on their face||Review of data within a document in order to determine that a presentation complies with international standard banking practice and the principles contained in UCP||Electronic records are examined only for the data received and not the reality that such data represents|
|Document||The term suggests format in a paper medium: unless specifically allowed under the terms and conditions of a UCP 600 credit, it is expected that all presentations under such a credit be in a paper format||Adds the term ‘electronic record’ to the meaning||Place for presentation||The place where the documentary credit is available||Extends the phrase to include an electronic address||Data Processing System||Not necessarily used||A computerised or an electronic or any other automated means used to process and manipulate data, initiate an action or respond to data messages or performances in whole or in part||Electronic signature||Not specifically defined: article 3 highlights that ‘a document may be signed by handwriting, facsimile signature, perforated signature, stamp, symbol, or any other mechanical or electronic method of authentication’||Data attached to an electronic record with the intent of identifying the signer and authenticating the record||Format||Unless specifically stated otherwise, expected to be paper||The protocol by which data is organised, the version of that format, or the shorthand name by which that protocol is recognised and described||Paper document||Unless otherwise stipulated, assumption is that all ‘documents’ are in a paper medium: however, as is often the case with UCP 600, this fundamental assumption is not stated expressly and, instead, the term ‘document’ is used||Refers to a document in a paper medium, the type of document which is expected to be presented under UCP 600||Authentication||The process by which the validity of the representations and the paper documents containing them are ascertained: under UCP 600, the level of authentication of paper documents is facial||Identifying the person sending a message and the source of the message, and associating the person authenticating with the content of the message authenticated||Goods, Services or Performance||Banks deal with documents and not with goods, services or performance to which the documents may relate||Also addresses electronic records||Notice of completeness||Not applicable||Presentation does not take place until the presenter provides a notice of completeness to the nominated bank, confirming bank, if any, or to the issuing bank||Time for examination||Once presentation is made to an issuing or confirming bank, the time for examination commences||Electronic records may be presented separately and, even if paper documents are presented in one lot, they must be coordinated with the electronic records: the time for the examination of documents does not commence until the notice of completeness is received||Period for examination||Maximum of five banking days following the day of presentation to determine if a presentation is complying||Remains applicable||Approach by the issuing bank to the applicant in order to seek a waiver of discrepancies||UCP 600 sub-article 16 (b) (Discrepant Documents, Waiver and Notice)||Remains applicable||Notice process for discrepant documents||UCP 600 sub-article 16 (b) (Discrepant Documents, Waiver and Notice)||Remains applicable||Disposition of documents in event no instructions received subsequent to notice of refusal||Paper documents can be held or returned||Paper documents can be held or returned||Originals and copies||UCP 600 sub-articles 17 (b) and (c)||Any requirement for an original is satisfied by the presentation of one electronic record: in the event of a requirement for multiple copies, the condition will be fulfilled by presentation of one electronic record||Date of issuance||Requirement for a document to be dated is with respect to the identification of certain dates on transport and insurance documents. In addition, there are expectations that other documents, such as statements or certifications, must contain a date. ISBP 745 goes into more detail as to documentary requirements under UCP 600. Credits may also contain a specific requirement that a document be dated||Effectively dates electronic records, with the result that all such records must be dated: if there is to be any other way of determining the date of issuance then this will be for the eUCP credit itself to determine||Date of shipment or dispatch or taking in charge or a date the goods were accepted for carriage||Contains elaborate rules for determining the date of shipment or dispatch that are individualised according to the type of transport document involved||Date of shipment is the date in the electronic transport record indicating shipment or dispatch or taking in charge or the goods were accepted for carriage. If there is no date indicating shipment or dispatch or taking in charge or goods accepted for carriage, the date of shipment or dispatch is the date of issuance of the electronic transport record unless there is a notation evidencing shipment or dispatch or taking in charge or goods accepted for carriage||Data corruption||No rule for paper documents that are lost or rendered unreadable by a bank after they have been received; most banks have procedures in place that minimise the consequences of such loss and there is no perceived need for such a rule. These procedures involve refusing payment based on discrepancies in the documents that are presented, requesting a substitute document, or indemnifying the applicant for any harm that may result from the lost document||Provides a method by which corrupted data may be re- presented; based on the assumption that all electronic records are replaceable||Disclaimers||Contains several disclaimers that are also relevant to an eUCP credit||Additionally, disclaims banks’ liability for any divergence from the realities represented in authenticated electronic records||Force Majeure||States the force majeure events for which a bank assumes no liability or responsibility||Extended to cover the inability of a bank to access a data processing system, or a failure of equipment, software or communications network|
An eUCP credit must indicate the format of each electronic record. If the format of an electronic record is not indicated
The format means the method by which a data processing system organizes and reads data. eUCP sub-article e3 (b) (v) (Definitions) defines the term ‘format’ as ‘the data organization in which the electronic record is expressed or to which it refers’. eUCP article e5 requires that the format of an electronic record be specified in a eUCP credit and states the consequences
if not so indicated. In view of the fact that data processing systems are unable to recognize each and every format into which data may be organized, it is important that any data be in a format that is readable by the relevant data processing system.
As a result, it is essential that any eUCP credit (or relevant amendment) indicate the required format.
The eUCP is technology-neutral and does not specify the use of any particular format. The format is to be stated in the eUCP credit in a manner that is comprehensible to the presenter. With the ever-evolving change in technological development,
many systems of organization are regularly issued in successive versions. It is quite conceivable that an eUCP credit may indicate diverse formats for several documents. If the credit does not specify a format for a particular document, then such document may be presented in any format.
As mentioned above, it is essential that any related eUCP credit (or relevant amendment) indicate the required format.
Should it not do so, then the presenter can present in any format. Such a circumstance may result in a situation wherein,
while the issuing bank or any confirming bank would be unable to access the electronic records, they would still be liable to honor. Any ability to dishonour on the basis that a bank is unable to read the format in which data is presented would, under eUCP sub-article e7 (c) (Examination), not be feasible in such circumstances.
The sanction embodied in eUCP article e5 and sub-article e7 (c) (Examination) is not applicable to the presentation of data in a format that is not readable at all. Under eUCP sub-article e3 (b) (iii) (Electronic record), any data that has been presented in such circumstances is not an electronic record that, inter alia, must be capable of being examined for compliance.