| Topic | Guidance example | |-------|------------------| | Abbreviations | Accepted unless ambiguous | | Corrections | Must be authenticated (stamp/signature) | | Invoice amounts | Must not exceed credit amount | | Bill of lading | Must show “on board” notation with date | | Insurance documents | Must cover the specified risks | | Addresses | Can be different from applicant’s address |
While UCP 600 sets the rules, it does not define every detail. For example, UCP 600 says documents must comply, but it doesn't explicitly state whether a signature must be handwritten, stamped, or electronic. This ambiguity historically led to high rates of refusal of payment. ucp 600 and isbp 681pdf
UCP 600 and letters of credit | Trade Finance Global 2025 guide | Topic | Guidance example | |-------|------------------| |
Her first instinct was to look for substance over semantics: did the documents, taken together, demonstrate that the goods had been shipped as required? UCP 600’s Article 14 reminded her that banks must examine documents with reasonable care to ensure apparent compliance. ISBP 681’s guidance, more granular, suggested when certain descriptions might be acceptable or when an inconsistency could be cured by context. UCP 600 and letters of credit | Trade
The International Chamber of Commerce (ICC) maintains these publications to standardize how banks handle Letters of Credit (LCs)