As such, it filled a needed gap in the market between the general principles in the UCP and the daily job of the practitioner. Though much of the ISBP remains unchanged from the version, certain alterations have had to be made. These are essentially to remove paragraphs from ISBP where the principle has been incorporated in UCP ; to make technical adjustments in capitalization; to substitute UCP article references for those of UCP ; to change dates from to ; and to incorporate changes in ISBP paragraphs necessary to bring the wording in line with wording in UCP Though some of these changes are minor, practitioners would be well advised to have this latest version of the ISBP at hand. In addition to giving needed guidance to the practitioner, the ISBP was originally created to help reduce the large percentage of documents refused for discrepancies on first presentation. Anecdotal evidence suggests that this objective has been partially attained.

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One problem with the UCP rules is that they are written in a general manner, which means that they are not detailed enough to cover the day-to-day practice.

So ISBP was born. UCP was the latest version of the rules, which were governing the documentary letters of credit, at the time of ISBP was being prepared. Another aim of the drafting commission of the ISBP was to achieve internationally accepted standards for examination of documents under documentary letters of credit. In order to succeed on this aim commission asked various ICC national committees and members to send checklists on how documents were examined in their organizations.

After 14 meetings and 4 different drafts, the ISBP was finally put into its final shape. UCP replaced the previous rules.

ICC publication number is ISBP consists of 10 chapters and consecutive paragraphs. Headings of the ISBP chapters are given below. Under each chapter, very detailed explanations can be found relating to the specific subject.

International Standard Banking Practice — ISBP is the latest and the most comprehensive guide to handling and examining trade documents under letters of credit. Use of ISBP has significantly reduced international discrepancies for documentary credits and is regularly used by banking, logistics, insurance, legal and corporate professionals and academics worldwide.

It is a great companion book with UCP All professionals, banking, logistics, insurance, legal and corporate professionals and academics worldwide, who deal with documentary credits can use International Standard Banking Practice — ISBP as a 1st reference book on their daily routine.

IEC 60265-1 PDF

ISBP: International Standard Banking Practices

Introduction International Standard Banking Practice ISBP first approved by the ICC Banking Commission in Publication and updated in Publication , has developed into an invaluable aid to banks, corporates, logistics specialists and insurance companies alike, on a global basis. Participants in ICC seminars and workshops continue to indicate that rejection rates have decreased over the past 11 years, and it would be appropriate to acknowledge that a major contributing factor is the application of the practices detailed in ISBP. At the time ISBP Publication was approved by the Banking Commission it was stated by a number of national committees that its application had no relationship with UCP , mainly due to UCP having been implemented some 8 years previous. It is emphasized that this was an updated version as opposed to a revision of ICC Publication This publication is the first revision of Publication This publication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit. It is the expectation of the Drafting Group and the Banking Commission that the application of the principles contained in the ISBP, including subsequent revisions thereof, will continue during the time UCP is in force.


UCP 600 and Letters of Credit | Trade Finance Global 2020 Guide

The terms of a credit are independent of the underlying transaction even if a credit expressly refers to that transaction. To avoid unnecessary costs, delays and disputes in the examination of documents, however, the applicant and beneficiary should carefully consider which documents should be required, by whom they should be produced and the time frame for presentation. The applicant bears the risk of any ambiguity in its instructions to issue or amend a credit. Unless expressly stated otherwise, a request to issue or amend a credit authorizes an issuing bank to supplement or develop the terms in a manner necessary or desirable to permit the use of the credit. The applicant should be aware that UCP contains articles such as 3, 14, 19, 20, 21, 23, 24, 28 i , 30 and 31 that define terms in a manner that may produce unexpected results unless the applicant fully acquaints itself with these provisions. For example, a credit requiring presentation of a bill of lading and containing a prohibition against transhipment will, in most cases, have to exclude UCP sub-article 20 c to make the prohibition against transhipment effective.


International Standard Banking Practice

Many banks and lenders are subject to this regulation, which aims to standardise international trade, reduce the risks of trading goods and services, and govern trade. UCP was created by industry experts, and mandated by the Banking Commission, rather than through legislation. The UCP rules are voluntarily incorporated into contracts and have to be specifically outlined in trade finance contracts in order to apply. They also allow flexibility for the international parties involved.

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