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The extensively updated rules, known as URDG 758, came into force on July 1, 2010. They reflect international practice in the use of demand guarantees, and apply to all sectors of trade and industry including construction, banking, project finance and trade finance. Clearer, more precise and more comprehensive than previous version, URDG 458, the new rules aim to maintain risk control by fostering a high level of certainty and predictability.
“URDG 758 is another fine ICC tool for the facilitation of global trade,” said Don Smith, principal at Global Trade Advisory and former chair of USCIB’s Banking Committee. “URDG 758 levels the playing field for U.S. bankers as they provide a fuller set of product offerings to assist U.S. businesses compete globally.”
Comprised of 35 articles, the new URDG have been updated to describe more clearly each stage of the guarantee lifecycle, from drafting a guarantee and counter-guarantee, to making a presentation, examining it, making payment and termination of the undertaking.
The ICC Guide to Uniform Rules for Demand Guarantees is a practical companion to the URDG 758, and was written as a user-friendly, comprehensive resource for anyone wanting to put the rules into practice.
“The guide is key to understanding how best to use ICC’s Uniform Rules for Demand Guarantees,” according to Georges Affaki, who chaired the URDG 758 drafting group. “It explains the fundamental principles of the URDG 758 rules, their scope and the advantages they offer to all parties involved. It will help users and issuers of demand guarantees and counter-guarantees to make the most of URDG 758.”
The new guide’s co-author, Roy Goode, added: “Each word of the new URDG was chosen after meticulous examination by the drafting group in light of comments received from ICC national committees around the world. The guide is not simply a straightforward analysis of the URDG, it penetrates below the surface to explain the nuances of the rules and their practical significance.”
Divided into five chapters, the ICC Guide
gives valuable information on what demand guarantees are and how they should be applied in daily practice. It provides an overview of the URDG 758, their main features, as well as the reasons that led to their adoption. A large part of the publication is dedicated to an article-by-article commentary of the rules, richly illustrated by case studies. Comparative tables offer, at a glance, the similarities and differences between the URDG 758 and the URDG 458, UCP 600, ISP98 and the UNCITRAL Convention on Independent Guarantees.
The publication also offers an engaging account of the approaches used by the ICC experts during the revision process that spanned two-and-a-half years. “The guide leaves no secret as to the background of each policy choice and drafting decisions that we took when drafting the new rules,” said Mr. Affaki.
To purchase the ICC Guide to Uniformed Rules for Demand Guarantees, visit USCIB International Bookstore.
About ICC
The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 120 countries have interests spanning every sector of private enterprise. A world network of national committees keeps the ICC International Secretariat in Paris informed about national and regional business priorities. More than 2,000 experts drawn from ICC’s member companies feed their knowledge and experience into crafting the ICC stance on specific business issues. The United Nations, the World Trade Organization, the G20 and many other intergovernmental bodies, both international and regional, are kept in touch with the views of international business through ICC. For more information, visit www.iccwbo.org.
About USCIB
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.
Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org
USCIB International Bookstore website
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