An article-by-article analysis of eUCP variant 2.0 and eURC version 1.0 to explain for the new guidelines.
The new ICC eRules (eUCP Version 2.0 and eURC Version 1.0)
The new ICC eRules (eUCP Version 2.0 and eURC Version 1.0) came into force on 1 July 2019, and two distributions were made accessible by the ICC Banking Commission:
The further direction in regard to the treatment of the eRules, in view of the underlying principles in the UCP and URC
and standard practice right now existing for eCommerce transactions.
An extra direction paper was delivered on 7 April 2020 which gave specialized direction to the market on issues of power major, components to consider in adjusting ICC rules for explicit exchange financial instruments, and normal situations encounters in the conveyance of archives during the general wellbeing estimates attempted because of COVID-19.
Inside this report, it affirmed that ICC would keep on advancing the more extensive utilization of the eUCP Version 2.0.
It further explained that for existing credits subject to UCP 600, assuming all gatherings expect to change from the paper collection to electronic records, they might do as such by concurring a revision of the credit from UCP 600 to eUCP Version 2.0.
Scanned documents fall inside the meaning of an 'electronic record' in eUCP Version 2.0 however would have to meet
the prerequisites for confirmation as referenced in eUCP sub-article e6.
Concerning the eUCP, the substance of the ICC eRules is constantly observed to guarantee appropriateness.
Existing ICC rules, for example, UCP 600 and URC 522, while being invaluable in a paper world, give restricted insurance when applied to electronic exchanges.
The underlying knowledge of UCP 600 is essential, while an in-depth awareness of ISBP 745 is strongly recommended.
Legal.
To the extent that is known, no contention exists between the eUCP and eCommerce regulations. This is definitely the situation with UNCITRAL (United Nations Commission on International Trade Law) Model Laws including, in particular, the Model Law on Electronic Transferable Records and the Model Law on Electronic Signatures.
Noticed that when there is a compulsory prerequisite under nearby electronic business regulation for a more significant level
of validness, than would be expected under the eUCP, local electronic commerce law may impose additional requirements on an electronic presentation.
An audit of client arrangements genuinely should be embraced to guarantee that issues like organizations for electronic records, verification, and electronic mark necessities are covered.
Sales Contract and Request for Issuance of a Documentary Credit.
Likewise, with credits exclusively dependent upon UCP 600, an applicant should guarantee that any request for the issuance
of credit expressly clarifies and determines the appropriate documentary requirements as agreed with the beneficiary.
The documentation should likewise give an appropriate degree of confirmation concerning the quality, standard as well as sort of products being bought, thereby enabling a trouble-free importation of the goods.
As reflected in the ICC direction notes for narrative credit designs, the candidate and recipient ought to painstakingly consider the reports expected for the show, by whom they are to be given, their information content,
and the time span in which they are to be introduced.
As reflected in the ICC direction notes for narrative credit designs, the candidate and recipient ought to painstakingly consider the documents required for presentation, by whom they are to be issued, their data content,
and the time frame in which they are to be presented.
Documentary credits should exclude phrasing that is equivocal or dependent upon more than one understanding,
nor should they state conditions for which fulfillment cannot be ascertained from the face of a document.
Only documents that are necessary that are essential (e.g. for customs clearance purposes) ought to be expected by the credit.
The term ‘authenticate’ is used in the eUCP in two different senses:
In eUCP sub-article e3 (b) (iii) (Electronic record), it means identifying the person sending a message and the source of the message.
In eUCP sub-article e3 (b) (iv) (Electronic signature), it means associating the person authenticating with the content of the message authenticated.
The nature of this authentication is intimately connected to the nature of an electronic record and is covered in more detail regarding the meaning of 'electronic record' under eUCP sub-article e3 (b) (iii) (Definitions).
eUCP sub-article e6 (f) gives that when an electronic record can't be authenticated, it ‘is deemed not to have been presented.’
UCP 600 article 3 indicates that terms such as “first-class”, “well-known”, qualified”, “independent”, “official”, “competent”
or “local” should not be used to describe the issuer of a document. If a documentary requirement is so phrased, it will mean any issuer except the beneficiary is acceptable.
| 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 |
Les nouvelles eRègles de la CCI (eUCP Version 2.0 & eURC Version 1.0)
Une analyse article par article de la version 2.0 de l'eUCP et de la version 1.0 de l'eURC pour guider les praticiens sur les nouvelles règles. Ce guide fournit une explication approfondie pour chaque règle, ainsi que un aperçu du processus de préparation et de rédaction, en dessous les articles (Anglais).
ARTICLE E1—SCOPE OF eUCP
ARTICLE E2—RELATIONSHIP OF eUCP TO UCP
ARTICLE E3—DEFINITIONS
ARTICLE E4—ELECTRONIC RECORDS AND PAPER DOCUMENTS V. GOODS, SERVICES OR PERFORMANCE
ARTICLE E5—FORMAT
ARTICLE E6—PRESENTATION
ARTICLE E7—EXAMINATION
ARTICLE E8—NOTICE OF REFUSAL
ARTICLE E9—ORIGINALS AND COPIES
ARTICLE E10—DATE OF ISSUANCE
ARTICLE E11—TRANSPORT
ARTICLE E12—DATA CORRUPTION OF AN ELECTRONIC RECORD
ARTICLE E13—ADDITIONAL DISCLAIMER OF LIABILITY FOR PRESENTATION OF ELECTRONIC RECORDS UNDER eUCP
ARTICLE E14—FORCE MAJEURE
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