Difference Between UCP600 Article 13 and URR 725

[dinesh2476]

Dear Experts,

Please provide your opin on the below case.

a. What is the difference between Article 13(bank to bank reimbursements) and URR725?
b.Why we have article 13 and URR 725 for reimbursements?

When the letter of credit states URR725, we will apply URR725 and the credit is silent,we will apply article 13

Regards
Dinesh

[dinesh2476]

Dear Experts,

Please provide your opin on the below

Regards
Dinesh

[arumkar]

URR 725 give more clear instructions about reimbursements. So if credit is states URR725, we will apply URR725 and the credit is silent,we will apply article 13

[Navi]

Dear Friend,

Article 13 deals with reimbursements but with least detail. It shortly indicates:

* that LC should state which rules for reimbursement will be applied.
* that issuing bank should send reimbursement authorization to reimbursing bank, (no expiry date should be mentioned)
* that reimbursing bank will not require certificate of compliance
* that reimbursing bank has no obligatory to honour claims and issuing bank is responsible for any delays and or non honoured claim. ,
* that reimbursing charges are for account of issuing bank unless otherwise stipulated in the credit.

URR 725 was written due to deficiency of article 13 when applied to more complicated issue. It is more detailed brochure arranging bank to bank reimbursements. It comprises shortly;
* all definitions,
* liabilities and responsibilities of all parts;
* forms of reimbursement authorizations, amendments and claims
* maturities, amendments, cancellations,
* details of reimbursement undertaking (not explained in article 13)
* charges. interests etc.

LC and reimbursement authorization should expressly indicate which rules to be applied. For instance when LC issued via MT700/710 than field 40E may state UCP LATEST VERSION (article 13 will apply) or UCPURR LATEST VERSION (URR 725 will apply)
.
Best regards

[dinesh2476]

Dear Navi&arumkar,

Thanks

Regards
Dinesh