Best Trade Solution

Dear all,
considering Art. 1 of UCP 600 (modification and exclusion)could any one please explain how do they ( modification and exclusion ) in practice fulfilled and also which Articles or part of it can be modified and which of them have to necessarily be excluded? I hope i could have clearly described my question.

Dear Hassan,


when it comes to documentary credits and related contracts the possible variety of conditions, clauses, exceptions, specialities is surely endless.

By allowing both “modification” and “exclusion” article 1 is quite flexible and supports all kind of necessary adjustments to be made.

From my point of view it would be quite difficult to create a definite list of articles which may only be modified and others which may only be excluded. This approach doesn’t seem to be practicable as it really depends on the underlying transaction and the parties involved whether the default requirements of UCP are suitable or whether a different requirement is needed.

My personal preference though is to describe exactly what the beneficiary has to present rather than excluding an article in which a different default clause is included.

At the end of the day it is the responsibility of the issuing bank to offer assistance to the applicant in creating the wording for suitable requirements.


Kind regards


Currer

dear hassan,

agree with currer. in addition, u may have a look at it.

http://www.besttradesolution.com/librar ... lusion.pdf

regd

shahriar

The other day, I heard about an exclusion clause which I found quite interesting.

The issuing bank excluded article 14 (i) in their documentary credit. While at first this exclusion seems to refer to prohibiting issuance of documents prior to issuance of the documentary credit, it should be noted that 14 (i) also prohibits presentation of documents with an issuance date in the future.

While one may argue that a document with an issuance date in the future would be discrepant on the basis of logic and common sense, the question remains whether the issuing bank is aware of excluding this particular requirement and whether its intention was to allow documents to be issued with a date in the future.

Such documentary credits may be better worded with an explicit requirement that all documents have to be issued after issuance date of the credit - thus modifying article 14 (i).


Regards


Currer

interesting indeed. but i think that it is actually possible that some document may be dated later than the date of presentation depending on their nature. for example a bank chaque may be of future date and still be valid. sorry could not think of a better example.

dear iLC,

when we ask for a document, we ask it for some reason. a future dated document, if valid, will serve a purpose only from that future date. whats the benefit of a presentation where applicant has to wait ...

regd

shahriar