Comments to UCP Revision - Complete Draft November 2005

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4 January 2006

To: The Chair and Members
Canadian Working Party on the
ICC Commission on Banking Technique and Practice

Dear Members of the CWP,
Below is my comments on the UCP 600 Complete Draft November 05.

Line Numbers Comments

14 After "bank" add "or another bank" because the second advising bank is instructed by the first advising bank, not the issuing bank.

16 After "Applicant" add "or Accountee" to accommodate USA banking practice.

64 After "signed," add "or authenticated" to treat signing and authenticating as the same.

100 After "legalized" add "authenticated" to cover authentication.

172 After "or to pay at maturity" add "when there is no draft" for clarity.

211 - 212 Deletion of "without recourse" in the definition of confirmation and here may be misinterpreted by the parties to mean that negotiation by a confirming bank is now with recourse, a change from UCP 500 where "without recourse" is highlighted.

239 Delete "and" and add ",".

242 Delete "and" and add ",".

245 Delete "and" and add ",".

246 Delete "and" and add ",".

370 Prefer Alternative 1 to support total consistency amongst the documents.

398 - 402 This sub-Article cannot work in Austria and Czechoslovakia because in these countries different companies of different addresses may share the same company name. It is then impossible to determine whether the applicant or beneficiary is that named in the credit.

520 & 529 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

609 & 618 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

624 After "notation" add "on".

718 After "notation" add "on".

703 & 712 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

754 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

764 Before "stamp" add "notation" to accommodate the fact that most MMTDs are in bill of lading format.

813 & 864 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

881 Delete "in different modes of transport" because transhipment can only take place within the same mode of transport and line 888 allows only one mode of transport for transhipment.

910, 912 & 915 Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.

967 - 969 To be consistent with the cargo insurance backbone doctrine, where the effective date of insurance is based on the occurrence of an event (commencement of transport) rather than the issuing date of the insurance document, this sub-Article should be reworded as "An insurance document is acceptable if it bears linkage to the goods in the commercial invoice or to the shipment in the transport document".

1004 Add at the end "Institute Commodity Trades Clauses (A)" which is agreed with the Federation of Commodity Associations for the insurance of shipments of cocoa, coffee, cotton, fats and oils not in bulk, hides, skins and leather, metals, oil seeds, sugar (raw or refined) and tea. These commodity goods are very popular, particularly associated with charter party bill of lading. Since we have one article dedicated to charter party bill of lading, we should at least have one insurance clause for commodities, particularly that we do not have a frozen food article and yet we have frozen food insurance clause in the UCP 600.

See you all on Friday (Jan 6) morning.
Happy New Year!
T. O.

(416) 298-5881

(416) 292-5535

Line Numbers	Comments
14	After "bank" add "or another bank" because the second advising bank is instructed by the first advising bank, not the issuing bank.
16	After "Applicant" add "or Accountee" to accommodate USA banking practice.
64	After "signed," add "or authenticated" to treat signing and authenticating as the same.
100	After "legalized" add "authenticated" to cover authentication.
172	After "or to pay at maturity" add "when there is no draft" for clarity.
211 - 212	Deletion of "without recourse" in the definition of confirmation and here may be misinterpreted by the parties to mean that negotiation by a confirming bank is now with recourse, a change from UCP 500 where "without recourse" is highlighted.
239	Delete "and" and add ",".
242	Delete "and" and add ",".
245	Delete "and" and add ",".
246	Delete "and" and add ",".
370	Prefer Alternative 1 to support total consistency amongst the documents.
398 - 402	This sub-Article cannot work in Austria and Czechoslovakia because in these countries different companies of different addresses may share the same company name. It is then impossible to determine whether the applicant or beneficiary is that named in the credit.
520 & 529	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
609 & 618	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
624	After "notation" add "on".
718	After "notation" add "on".
703 & 712	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
754	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
764	Before "stamp" add "notation" to accommodate the fact that most MMTDs are in bill of lading format.
813 & 864	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
881	Delete "in different modes of transport" because transhipment can only take place within the same mode of transport and line 888 allows only one mode of transport for transhipment.
910, 912 & 915	Replace "goods' with "cargo" because "goods' are to be used in a commercial invoice and "cargo" is to be used in a transport document.
967 - 969	To be consistent with the cargo insurance backbone doctrine, where the effective date of insurance is based on the occurrence of an event (commencement of transport) rather than the issuing date of the insurance document, this sub-Article should be reworded as "An insurance document is acceptable if it bears linkage to the goods in the commercial invoice or to the shipment in the transport document".
1004	Add at the end "Institute Commodity Trades Clauses (A)" which is agreed with the Federation of Commodity Associations for the insurance of shipments of cocoa, coffee, cotton, fats and oils not in bulk, hides, skins and leather, metals, oil seeds, sugar (raw or refined) and tea. These commodity goods are very popular, particularly associated with charter party bill of lading. Since we have one article dedicated to charter party bill of lading, we should at least have one insurance clause for commodities, particularly that we do not have a frozen food article and yet we have frozen food insurance clause in the UCP 600.