Right of Subsitution of Invoices and Bill of Exchange

Right of Substitution of Invoices and Bill of Exchange

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Questions Raised by V.T.:
In a transferable LC, UCP 600 indicates a right of substitution of invoices and Bill of Exchange by the first beneficiary. If the first beneficiary wants to substitute other documents (like insurance advice, applicant advice, etc.), does UCP allow this? Or prohibit any substitution other than invoice and Bill of Exchange? What is the general history on such substitutions through UCP journey till 600?

General Response from T.O. Lee:
Dear All,
From my observations, there are four levels of competence in UCP application.

Those DC practitioners who cannot observe all the articles because of inadequate understanding of the intent behind the articles or inaccurate interpretations of some sub- articles.
Those who observe the rules strictly, without any flexibility in applying the articles.
Those who know the articles profoundly, including the intent behind the articles and can make the best use of the articles to achieve his/her objectives, yet in a safe manner.
Those who have the courage to point out that some sub-articles in UCP or certain ICC Banking Commission opinions are actually not reflecting the trade practices of other trades, such as in transport and cargo insurance, even though his/her voice is not listened by the ICC Banking Commission and the local ICC National Committees. S/he is doing this to respect "the right to know the truth" of the general public. S/he has to walk alone, with more opponents than friends and sometimes being referred to as a trouble maker or a loosen canon ball.
Which of these roles you wish to play?
Regards,
T. O.

Zahoor's Response to the questions from V.T.:
Just as UCP 600 mentions that any rules can be ... - in same way we should also ...
Regards
Zahoor N Dattu
Principal Consultant
B. Management Consultancy

T.O.'s Addendum (including Comments to Zahoor's Response):
Well said, Zahoor.
All rules are intended to ... but it is not intended to ...
For example, ...
Is this a violation of UCP? ...
Bankers should ...
Best regards to all!
T. O.

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