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745 ISBP What's New?

Nguyen Huu Duc


(The article was published print SBV Banking Review April 2013
Issue No. 8)
.
Along with UCP 600, ISBP (International Standard Banking Practice
for the Examination of Documents under Documentary Credits Habits Bank International Standards Test under letters of credit
vouchers) be considered as a handbook indispensable guide for
banks, import-export companies, the logistics experts, insurance
companies ... in the preparation and examination of documents
presented under letters of credit (L / C).
The first version was called ISBP 645 ICC Banking Commission
published in 2002. After 4 years of use, the Commission decided
to conduct Bank ISBP 645 amendments and adopted the 2007
version called ISBP 681.- However, after almost two years of
application, ISBP 681, in extent, has revealed many deficiencies
and not meet the actual requirements of the inspection
documents under L / C, therefore, in 3/2009 meeting in Dubai, ICC
Banking Commission again decided recently amended on June
ISBP 681.- 17/04/2013 ICC Banking Commission meeting in Lisbon
(Portugal) adopted the The final draft ISBP ISBP called 745.
Immediately after the meeting of the ICC Banking Commission in
Lisbon, Kim Sindberg - Members of the Drafting Group ISBP 745 shared with the writer final draft was ISBP 745 ICC Banking
Commission approval. Expected to take some time to come the
new version 745 ISBP ICC Banking Commission officially published
and applied force. The post also eager to be shared with

colleagues and interested readers some new domestic notable


ISBP ISBP than 681 745.
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PRELIMINARY ASSESSMENT OF INITIAL
We can say ISBP 745 version is amended careful than 681 ISBP
both content and form. Drafting Group include Gary Collyer
(British), RV Balasubramani (India), Graham Christiansen
(England), Carlo Di Ninni (Italy), Wolfgang Heiter (Germany), Ed
Jongenelen (Netherlands), Iqbal Karmalli (UAE), David Meynell
(England), Rene Mueller (Switzerland) Kim Sindberg (Denmark),
Charnell Williams (USA) and Zha Zhongming (China) took nearly 4
years to modify ISBP 681.
Learning from but disputed documents as well as from the real
problems in the inspection documents presented under L / C
which banks have reflected and have been for the ICC Banking
Commission is answering in time Recently, the Drafting Group
ISBP 745 rewrote the whole of ISBP guides paragraphs 681,
adding a variety of situations and specific examples to illustrate
more clearly. Besides, the group also prepared 745 additional ISBP
testing more guidance documents previously ISBP 681 without a
guide, for example, packing list (packing list) lists the weight
(weight list), witness Certified by the beneficiary (Beneficiary 's
certificate), the certificate of analysis (analysis), inspection
(inspection), medical (health), phytosanitary (phytosanitary), the
number (quantity) and quality ( quality) and other certifications.
Therefore, the form, the version will be thicker ISBP 745 ISBP 681
doubles.
745 ISBP thoroughly solve the problems that people check
documents presented under L / C often encountered before. ISBP

745 will certainly reduce disputes related documents. The writer


of this article believe ISBP 745 will continue to be accepted as a
handbook indispensable bedside of those who do work related to
the preparation and checking documents presented under the L /
C.
.
NEW POINTS RELATING TO THE INSTRUCTIONS IN THE OPENING
ISBP 745 must be read in conjunction with UCP integral and 600:
Unlike ISBP 681, 745 ISBP immediate confirmation at the scope of
application of that ISBP 745 must be read in connection and
integral UCP 600.
Insists on showing that ISBP 745 is part of the UCP 600. Business
Bank left the bases ISBP 745 to check the documents and can cite
the appropriate section of ISBP direction 745 as a basis to refuse
if the presentation is inconsistent with the terms and conditions of
the L / C, UCP 600 and 745 ISBP.
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SOME NEW FEATURES RELATING TO GENERAL PRINCIPLES
Abbreviations
745 additional guidance ISBP case L / C use abbreviations are
allowed presented documents showing acronyms or any other
abbreviations have the same meaning or express words are
spelled in full or opposite.
For the sign "/", ISBP 745 additional examples to clarify meaning.

If the L / C rules "red / black / blue" without further explanation, it


means that only red or black or blue or any combination of these
colors can be accepted ring.
.
The certificate, the testimony, the testimony and the statement
681 ISBP header record is testimony and testimony (Certifications
and Declarations), extending 745 ISBP title as certificates,
testimony, testimony and Declaration (Certificates, Certifications,
Declarations and Statements).
This item ISBP 681 Guide only includes a paragraph shall ISBP 745
3 segments with specific examples to clarify the meaning:
If the L / C required to present a certificate, testimony, testimony
or statement, the documents that must be signed.
Certificate, testimony, testimony or statement shall include the
date or not depends on the type of certificate, testimony,
testimony or statement is requested, words and terms
requirements expressed in vouchers.
For example, L / C required to present a certificate issued by the
carrier or issuing agent stating that the ship does not exceed 25
years, the certificate can prove conformity by demonstrating:
(I) date or year the vessel is closed, and the date or year does not
exceed 25 years prior to the date of delivery or the year in which
the delivery is made, in this case does not need to record the
release date, or
(Ii) the terms listed in the L / C, in this case requires a release

date, thereby showing that until the day that the vessel shall not
exceed 25 years.
When the certificate, testimony, statements or claims in other
documents will be signed and dated, it does not require a
signature and date when the certificate separately, testimony,
testimony or statement was issued and signed by the same unit.
Vouchers and needs to fill the boxes, cases and vacancies

ISBP 745 additional instructions that if vouchers have a cell, or


the blank field to fill in the data, it is not necessary to enter the
data into the cell, the school or that vacuum. For example, it is
not required to enter data into the "accounting information"
(accounting inforrmation) or "information processing" (handling
information) often seen on the waybill no.

These terms are not defined in UCP


Compared with ISBP 681, 745 ISBP adding the following terms:

"Third party documents not acceptable" (documents from third


parties are not accepted) - does not make sense and would not be
interested.
"Shipping company" (the shipping company) - when used in the
context of the person issuing a certificate, testimony or testimony
relating to transport documents - means any person after here:

the carrier, master, or when a bill of lading presented charterer,


the captain, the ship owner or charterer, or any entity that is
identified as the agent of any person on regardless of whether
that person is released or sign transport documents presented or
not.
"Documents acceptable as hin" (documents can be accepted as
presented) - is a presentation may include one or more of the
specified documents as long as they are presented within the
validity period specified in L / C and the amount paid in the value
of L / C. If not, those documents will not be checking the
conformity according to UCP 600 even when they are presenting
the correct amount of the original or copy of the request or not.
.
Language of documents
Language vouchers prescribed ISBP 681 vouchers issued by the
beneficiary must be in the language of L / C. If the L / C provisions
may accept vouchers issued by two or more languages, the bank
indicated, when informed L / C may limit the number of languages
is acceptable as a condition committed in the L / C. 745 ISBP
revised guidance on the language of the document complete and
clearer. Whereby:
When the L / C provisions language documents presented, the
data is L / C or UCP 600 requirements must be shown in that
language.
When L / C is not specified in the language of the documents, the
documents presented may be issued in any language;
When L / C allows two or more languages are acceptable, the

confirming bank or banks designated to act in accordance with


the specified language may limit or the number of languages is
acceptable as as a condition of its commitments in the L / C, and
in this case, the data in these documents shall be the language or
languages acceptable;
When L / C allows a document containing the data in two or more
languages are acceptable, the confirming bank or banks
designated to act in accordance with the specified language may
limit or number Language can accept as a condition of its
commitments in the L / C, the bank is required to check the data
in all acceptable language shown on the voucher.
The bank does not check the data are expressed in languages
other than the language required or permitted in the L / C.
Name, organization, seal and certify the legality, Endorsement
and content printed on the voucher, such as, but not limited to
title, maybe in a language other than the language is required .
.
Non-documentary conditions and conflicting data
745 ISBP additional guidance on the case of L / C provisions on
non-documentary conditions. Accordingly, when L / C stipulated a
condition where not specified documentation to demonstrate
compliance with such document (called non-documentary
conditions), it is not necessary to demonstrate compliance with
the conditions on any documents that are prescribed. However,
data on stipulated documents are not in conflict with nondocumentary conditions. For example, L / C expressed packing
conditions are "printed wooden packing Cases" but does not
require such conditions shown on any documents specified, but

the presentation is different from the present packing packing


conditions stated in the L / C is considered to be conflicting data.
.
Original and copy
Determination guide documents presented are original or replica,
ISBP 681 recommendations ICC Banking Commission refer to
Policy Statement, Document 470/481 (rev) "The Determination of
an Original Document 500 in the context of UCP sub -article 20 (b)
", while 745 gave direct ISBP some contents of Document 470/481
(rev) into their own instructions.

The signature
Guide to the signature of 745 ISBP ventilation and clearer.
Accordingly, the documents do not necessarily signed by
handwriting. Documents may be signed by facsimile signature
(signature printed or scanned signatures), signature perforation,
signed by stamp, symbol or by any means electronic
authentication or mechanical.

A request documents must be "signed and sealed" or a similar


requirement will be satisfied by a signature in the form above and
sign the name of the unit to be typed, stamped, handwritten,
printed existing or scanned on vouchers ...

The statement on the document, such as "This document has


been authenticated electronically" (This document has
authenticated electronic side) or "This document is issued by
electronic means and does not require signature" ( This document
opens inside Produced by electronic means again and requires no
signature) or by the terms have the same meaning, can not
present itself as an electronic authentication method in
accordance with the requirements of Article 3 UCP signature 600.

The statement on the document showing that the authentication


can be done through a specific reference to a website (URL)
constitute a form of electronic authentication in accordance with
the requirements of signature in article 3 UCP 600. Banks will not
visit those sites for authentication.
If the sign is signed on behalf of the record (for or on Behalf of) a
subsidiary of the issuer, the signature which is considered the
signature of the issuer.
Car vouchers, school or place to sign does not necessarily have to
be signed. However, if the documents have the sentence "This
document has no value unless it is followed up or signing" or
similar statements from, the umbrella, school or place that must
be signed.
Vouchers combination
ISBP 745 additional instructions:
Vouchers are L / C request represents more than one function can
be presented with a voucher or by separate documents showing
completion of each function. For example, L / C required to

present a Certificate of Quality and Quantity will be satisfied by


presenting a voucher or with a Certificate of Quality and a
Confirmation Number as long as each document is expressed Its
functions and presented the correct amount of the original and
copies as required by the L / C.

ISSUES DRAFTS
The problem there is the draft documents are required to present
under L / C or not, and flaws in the draft may constitute a reason
to refuse payment or not has become a subject of debate without
an end although there ISBP terminated by the regulations on the
calculation of draft and maturity but not confirmed drafts Is
documents presented under L / C and errors in the draft have
constituted reason to bank refused pay.

3rd Draft asserted flaws in the draft is not related to maturity, the
maturity date, amount, endorsement ... not making invalid votes.
However, the draft then ISBP 745 and withdrew this claim.

SOME POINTS CONNECTED WITH THE NEW BILL


Issuers bill
681 ISBP no guidance on the invoice issuer. ISBP 745 additional
guidelines to clarify Article 18 (a) (i) UCP 600 rules invoice issuer.
Accordingly, the bill must be issued by the beneficiary, or by the
second beneficiary in the case of L / C has been transferred. When

the beneficiary or beneficiaries second rename and L / C was


recorded the old name, the invoice can be issued by the new
company name as long as stating, "formerly known as [name of
person The first beneficiary or beneficiaries Monday] or verbally
with similar meaning.
.
Payment or delivery several times
In the tutorial section of the bill, 681 ISBP only brief instructions
regarding delivery several times, according to which, if the L / C
request delivery several times, each time delivery to suit the
delivery schedule . ISBP 745 additional instructions on payment
several times, detailed as follows:
When the payment and delivery many times (drawing or
shipment by installments) in the time period specified in the L / C,
and any delivery times does not get paid or not been done in
terms of time allow for delivery times, then L / C is no longer
worth paying for delivery time and for any subsequent deliveries.
The time period is the listing date determined the start date and
end date for each delivery. For example, L / C request delivered
100 cars in March and 100 in April automobile as an example two
period starts on 1 March and 1 April and end on 31 sequential
Three and 30 April.
When payment and partial shipments (partial drawings or
shipments) are permitted, allowing payment in installments or
delivery in each delivery.
When L / C stipulated payment schedule and delivery by just
recording some later date, rather than between an amount
prescribed time limit, it is not repeated delivery schedule as

prescribed by UCP 600 and Article 32 shall not apply. The


presentation will comply with directives relating to the schedule
and Article 31 UCP 600.

When payment and partial shipments are permitted, any number


of payments or delivery occurs on or before the date of payment
or at the latest delivery that is allowed.
Obviously with such guidance, help people check ISBP 745
vouchers can distinguish clearly the case of payment and partial
shipments (partial drawings or shipments) and case payment and
delivery is much Times (installment drawings and shipments) are
prescribed in Article 31 and 32 UCP 600 which is very misleading.
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SOME OF NEW DOCUMENTS RELATING TO THE TRANSPORT
CONDITIONS SET FORTH IN 19-25 UCP 600
ISBP 745 very detailed instructions on checking the transport
document, with many new features and changes compared with
681 ISBP that can only fully presented in a separate article. In this
article, the writer just go through some of the most common new
point for all kinds of transport documents.
.
Released, carriers, identify carriers and sign the bill of lading
681 ISBP just sign the bill of lading instructions, while ISBP 745
extended release guidelines, carriers, identify carriers and sign
the bill of lading. Accordingly, on the signing of the bill of lading,

ISBP 745 additional instructions:


When lading (multimodal, sea, air) or transport documents (road,
rail, inland waterways) are signed by a branch of the carrier by
name, the signature is treated as signed by the carrier.
ISBP 745 additional regulations on the case of L / C contains
provisions not accept consignment of delivery (Freight Forwarder's
Bill of Lading / Multimodal Bill of Lading are not acceptable) or not
accept consignment consolidation (House Bill of Lading /
Multimodal Bill of Lading are not acceptable). Accordingly, this
provision does not make sense in the context of the title, format,
content and form of lading signed unless the L / C has specific
requirements about how the consignment was released and
signed unless L / C has specific requirements about how the
consignment was released and signed.
The bill of lading may be signed by any unit other than the carrier
or the captain.
.
Notes loading on board, the date of delivery, the first leg of
transportation, destination and port of loading
681 ISBP just guiding notes on board, while comprehensive guide
Notes loading on board, the delivery date, transportation initial
stage where the consignee and the port of shipment. In particular,
745 ISBP guidance notes on loading on board (on board notation)
very detailed matching the Commission's proposals concerning
the Bank requirements for loading notes in Document No. 470 /
1128rev final - 22/04/2010 (Document No.470 / 1128rev final - 22
April 2010 - Recommendations of the Banking Commission of the
Requirements print respect for an On Board Notation).

On the date indicated on the document, 745 ISBP clearer rules


ISBP 681.- Accordingly, the original transport document,
depending on type, must release date (a date of Issuance),
loading notes marked day (a dated on board notation), date of
delivery (a date of shipment), dated receipt to delivery (a date of
receipt for shipment), date of shipment or carrier (a date of
dispatch or carriage) or is days of receipt (a date of taking charge
or a date of printing pickup or receipt).
.
Country name, port name on the bill of lading
According ISBP 745 national name need not appear on the
transport document whether L / C stipulates national name
attached to the place of shipment, the place of loading or port of
loading, port of discharge, final destination.
For air waybill, allow bearer ISBP 745 port and discharge using
code IATA (International Air Traffic Association) instead of using
the full name of the airport (for example, instead of Los Angeles
LAX ).
.
The consignee, notify party
Concerning information about the consignee (consignee) and the
notification (notify party) on the transport document, in addition
to similar ISBP guide 681, 745 ISBP additional guidance as follows:
When L / C providing details of one or more notification (notify
party), transport documents may also show the details of one or

more additional messages.


When L / C does not require a notified party shown on the
transport document but the details of the person requesting
issuance of L / C is shown on the notice, and these details
including address details only and the contact details, we are not
in conflict with the details outlined in the L / C.
When L / C request transport documents showing the goods are
sent to or by the order of the "Issuer" or "requests issued L / C" or
inform "people ask issuing L / C" or "Issuer", the documents must
show the name of Issuer, or who require L / C but do not need to
show details of addresses and contact details of the Issuer or the
person requesting issuance of L / C.
When the details of the address and contact details of the person
required to demonstrate that some of the details of the consignee
or the notice, they must not conflict with the details outlined in
the L / C .
Article 19 of UCP 600
Concerning Article 19 of UCP 600, 745 ISBP said when asked to
show an LC transport document is not evidence multimodal
transport, but LC showed more journeys using a method, eg when
the places of delivery or final destination is an inland place, or
when the recording port of shipment or discharge is actually a
place in the hinterland rather than a port of the Article 19 UCP
600 used to examine that document.
Note that the instructions of ISBP 745 on this issue in stark
contrast with the views of the former ICC.
.

Delivery of goods have more than one consignment


745 ISBP adding examples to clarify:
A bill of lading is not clear that the goods indicated on the bill of
lading which will only be delivered upon presentation of one or
more other lading, unless all references lading presented once
with a LC.
For example, if the bill of lading stating that the "Container XXXX
belongs YYY and ZZZ lading number and can only be delivered to
a trader when all of merchants of lading that are presented"
(Container XXXX is Covered by B / L No. YYY and ZZZ and can
only be released to a single merchant upon presentation of all
bills of lading of m merchant), the trader must produce a bill of
lading or other related to the new container reference by
consignee.
.
SOME OF NEW DOCUMENTS RELATING TO INSURANCE
Issuers insurance
In addition to the same guidelines as ISBP 681, 745 ISBP for more
examples to clarify insurance issuers.
Proof of insurance must be issued or signed by an insurer or the
insurer (underwriter) or their agents or authorized person (proxy)
of them. For example, an insurance document issued and signed
by the "AA Insurance Ltd." deemed to have been signed by an
insurance company.

When the issuer is identified as "insurance", the insurance


document does not need to show that the insurer or the insurer.
Insurance document is signed by an agent or authorized person
must sign the insurance company or insurance agent or a person
authorized to sign on behalf of, unless the insurance company's
name or the insurer were identified elsewhere on insurance
documents. For example, the name "AA Insurance Ltd" has been
realized on the insurance document are insured, the documents
may be signed "John Doe (by proxy) on Behalf of the Issuer" (John
Doe - authorized by - on behalf of the insurer) or "John Doe (by
proxy) on Behalf of AA Insurance Ltd" (John Doe - would be
authorized - on behalf AA Insurance Ltd.).
Insurance document which shows that insurance is provided by
more than one insurer may be issued and signed by a
representative or authorized by the behalf of all those insurance
or signed by a the insurer on behalf of all co-insurance (coinsurers). For example, "AA Insurance Ltd., the leading insurer for
[and on Behalf of] the co-insurers" (AA Insurance Ltd., a wholesale
insurance on behalf of the co-insurance). In this case, proof of
insurance without showing the names of the insurance contract,
not the expected percentage of their holdings in insurance.