PRESENTED BY MD. SHOAIB AHMED EXECUTIVE VICE PRESIDENT MERCANTILE BANK LTD.

1. International Standard Banking Practicefor the Examination of Documents under Documentary Credits(ISBP)2007 Revision for UCPDC 600Publication No. 681

2. PRESENTED BYMD. SHOAIB AHMEDEXECUTIVE VICE PRESIDENT MERCANTILE BANK LTD.

3. Features: • First Published in 2002 by ICC (Publication No. 645) • Checklist of procedures to be followed in examining documents presented under Letter of Credits. • One of the objectives is to reduce the large percentage of documents refused for discrepancies on first presentation. • It is not a substitute for the UCPDC, rather demonstrates how UCP ruls to be integrated into daily practice. • Total 185 articles for different items.

4. Abbreviations: (Article 6 – 7) • Generally accepted abbreviations do not make documents discrepant: • ‘Ltd’, ‘Int’l, ‘Co’, ‘kgs’ or ‘kos’ (for kilos), ‘Ind’ (Industry), ‘mt’ (metric), ‘mfr’ (manufacturer). • But slash “/” should not be used as a substitute for a word.

5. Certification/Declaration:(Article 8) • A certification, declaration may either be a separate document or contained within another document as required by the credit.

6. Corrections/Alterations:(Article 9 – 12) • Corrections/alterations must appear to be authenticated • Corrections in documents issued by the beneficiary need not be authenticated.

7. Dates: (Article 13 – 18) • Documents must be dated. • Any document may be dated after date of shipment. • Dates may be of different formats (Recommended to use the month’s name instead of number, e.g., 12 August 2009)

8. Expressions not defined in UCP 600: (Article 21) • ‘Shipping documents’, ‘Stale documents’, ‘exporting country’, ‘third party document acceptable’.

9. Issuer of Documents: (Article 22) • Documents to be issued on its letterhead, or if there is no letterhead, the documents appear to be completed or signed by, or on behalf of the named person or entity.

10. Misspellings/Typing errors: (Article 25) • Misspellings/Typing errors that do not affect the meaning of a word or the sentence do not make documents discrepant.

11. Multiple pages/attachment: (Article 26 – 27) • Signature in any page if not stated otherwise in the LC.

12. Originals and Copies: (Article 28 – 33) • ‘Original’, ‘Duplicate’, ‘Triplicate’, ‘First Original’, ‘Second Original’ etc will be treated as original documents. • Number of Originals should be mentioned.

13. Title of documents and combined documents:(Article 41 – 42) • Documents may be titled as called for in the credit, bear a similar title or be untitled. • (‘Packing note’, ‘packing and weight list’ = ‘packing list’)

14. Tenor: (Article 43 – 44) • Bill of lading date is on board date, not the date of issuance. • ‘from’ or ‘after’ will be determined as following tha date (Example: 10 days after or from March 1 is March 11). • For more than one on board notations in one B/L, the earliest on board will be used to calculate tenor. • If more than one Bills of lading against one draft, the date of the last bill of lading will be used to calculate tenor.

15. Maturity Date: (Article 45 – 47) • In case of non complying documents where refusal notice is issued, the date of acceptance (draft available by acceptance) must be no later than the date the issuing bank accepts the waiver of the applicant.

16. Invoices: (Article 58 - 67) • Invoice need not be signed, if otherwise not expressed in the LC • An invoice showing the entire goods description, then stating what has actually been shipped , is also acceptable.

17. Transport DocumentsConsignee, Order Party: (Article 76 – 78) • For direct consignment (‘consigned to Bank X’), multimodal BL must not contain words such ‘to order’ or ‘to order of’.

18. Goods description: (Article 84) • Description in BL should be in general term that does not conflict with the LC.

19. Correction/Alterations in BL: (Article 85 - 86) • Non-nego BL needs not be signed.

20. Date of Shipment (AWB): (Article 139 – 140) • The date of issuance of Air Transport Document (AWB) is deemed to be the date of shipment unless document shows a separate notation of flight date.

21. Airports of Departure/Destination:(Article 141 – 142) • Short name of Airports (as per IATA code) is not a discrepancy.

22. Consignee, Order Party(AWB): (Article 143 – 144) • AWB should not be issued showing ‘to order’ or ‘to order of’ (as not a document of title).

23. Issuers of Insurance Documents:(Article 171 - 172) • Documents must appear to have been issued and signed by insurance companies or underwriters or their agents or proxies.

24. THANK YOU ALL