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ICC announces adoption of new DOCDEX rules

11/11/2014 At the ICC Banking Commission meeting held in Istanbul on 5 and 6 November, the national committees of the ICC unanimously agreed to the final draft of the revision of the DOCDEX rules. The scope of the DOCDEX rules has now been widened to transactions that are not subject to ICC rules. Gary Collyer was one of the members of the Drafting Group. The ICC will now start the process of creating a new list of experts who will be charged to review the cases submitted for a decision.


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26/11/2024

The latest newsletter is now available in the members trade information section under the category of 'Newsletters'...more

ICC release Technical Advisory Briefing No. 11 - Definition of Trade Finance 19/09/2024

Recognising that there is no global standard for the defining Trade Finance, this Briefing document provides a suggested text and has been recommended for use by the ICC Banking Commisison Steering Committee...more

Latest Question

Our client will open a letter of credit for the import of goods (spare parts). Payment terms will be 90 days after bill of lading date provided that our customer will check the goods whether they are in good order and condition prior to proceeding with the payment, either for the full amount/part of the amount/or not to proceed with payment at all if the goods are not found to be in good order and condition. Please let us have your opinion on the below 2 questions, and on the wording of the clauses which will be added under Additional Conditions of the L/C in order to secure our customer concerning the payment of the L/C: Question 1: The confirming letter which will be presented by the applicant to us (Issuing Bank), whether it should be requested under the DOCUMENTS REQUIRED Field 46A of the credit OR whether it should be considered as a special term that concerns only the payment and should be requested under Additional Conditions of the credit as follows: PAYMENT WILL ONLY BE EFFECTED AT MATURITY (90 DAYS AFTER BILL OF LADING DATE) SUBJECT TO FULFILMENT OF POINTS 1 AND 2 BELOW: 1. UPON PRESENTATION OF COMPLIANT DOCUMENTS AT OUR COUNTERS AND DELIVERY TO APPLICANTS TO CLEAR GOODS FROM CUSTOMS; 2. UPON PRESENTATION BY ΤΗΕ APPLICANT (DIRECTLY TO THE ISSUING BANK) OF A WRITTEN LETTER CONFIRMING, EITHER: (A) THAT THE GOODS RECEIVED ARE IN GOOD ORDER AND CONDITION AND THE ISSUING BANK SHALL PROCEED WITH PAYMENT OF THE FULL INVOICE VALUE AS PRESENTED OR (B) THAT ONLY PART OF THE GOODS RECEIVED ARE IN GOOD ORDER AND CONDITION AND CLEARLY STATING THE AMOUNT TO BE PAID UNDER THE LETTER OF CREDIT, IN FULL SETTLEMENT OF THE LETTER OF CREDIT (WITHOUT FURTHER BENEFICIARY'S CONSENT) AND IRRESPECTIVE OF THE INITIAL VALUE OF THE INVOICE PRESENTED. THE PAYMENT SHALL BE CONSIDERED CONCLUSIVE ON BOTH PARTIES (APPLICANT AND BENEFICIARY) AND ISSUING AND NOMINATED BANK OR (C) GOODS RECEIVED ARE NOT IN GOOD ORDER AND CONDITION AND CLEARLY STATING THAT APPLICANT REJECTS PAYMENT OF ANY AMOUNT UNDER THE LETTER OF CREDIT, WITHOUT THE NEED OF BENEFICIARY'S CONSENT AND IRRESPECTIVE OF THE INITIAL VALUE OF THE INVOICE PRESENTED. THE DOCUMENTS SHALL BE CONSIDERED CONCLUSIVE ON BOTH PARTIES (APPLICANT AND BENEFICIARY) AND ISSUING AND NOMINATED BANK. THE WRITTEN LETTER MAY BE PRESENTED AFTER THE EXPIRY DATE OF THE LETTER OF CREDIT BUT NOT LATER THAN 85 DAYS FROM BILL OF LADING DATE. Question 2: Please clarify whether the above document should be presented within the validity of the L/C (i.e., Shipment date + Presentation Period) or whether it can be presented after the expiry of the L/C (e.g., 85 days after the bill of lading date).