What is ‘negotiation’, and why it must stay in the UCP

Introduction

There is no formal announcement from the International Chamber of Commerce (ICC) as of date, no preparatory move, no action at all on this front. No matter. The brainstorming has begun in right earnest! Intensive discussions are taking place on what changes are desirable in the next version of the Uniform Customs and Practice for Documentary Credits (UCP), an ICC publication that lays down the rules for the operation of documentary letters of credit (LC). This article examines only a few of the proposals that have been put forward in recent times.

The proposals

The suggestions are to:

a)     delete all references to drafts from the UCP

b)    merge the UCP with ISBP

c)     make the ISBP and the ICC Banking Commission Opinions available through the electronic medium to all (if it must be so, at an affordable price)

d)    purge ‘negotiation’ from the UCP and the ISBP.

Drafts

The angst against drafts is understandable. It emanates primarily from  (contd....)

[The complete article is available in the book 'Beyond Trade Finance', published on 13-Apr-2021 by Notion Press, and available at https://notionpress.com/read/beyond-trade-finance or at https://www.amazon.in/dp/1638508666]

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[1] Some random thoughts on the UCP, LC Monitor-Trade Services Update, Special Edition, January 2011 and Negotiation and the law of contracts, DC Insight, Vol. 16, No. 2, April-June 2010.