USCIB Gives Feedback on OECD New Approach to Economic Challenges Project

L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).
L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).

USCIB and member representatives met with officials from the Organization of Economic Cooperation and Development (OECD) on January 22 at USCIB’s New York office to give feedback on the OECD’s New Approach to Economic Challenges (NAEC), aimed at updating the organization’s instruments and policy analyses.

USCIB President and CEO Peter Robinson met with the main authors of the NAEC report, Mathilde Mesnard and William Hynes, along with member representatives from Citigroup, Wells Fargo and JPMorgan Chase.

The informal meeting gave USCIB an opportunity to provide member feedback and concerns at this stage of the NAEC project.

USCIB is the American affiliate of the Business and Industry Advisory Committee to the OECD (BIAC), which acts as the voice of business in the OECD and has provided structured input to the NAEC project.

The OECD’s final synthesis report on its NAEC work will be delivered to OECD ministers in June 2015.


Global Trade Set to Benefit From ICC Trade Register Report

4762_image002It has long been anecdotally known that trade finance is a low risk for lenders. That claim now has a wealth of data to back it up. Today the International Chamber of Commerce (ICC) released its 2014 Trade Register Report, providing overwhelming evidence that trade and export finance – in all its forms – is a low risk bank financing technique.

The report supports ICC’s and USCIB’s advocacy of trade finance as a strong contribution to economic recovery and growth. Its findings hold the potential to alter attitudes towards trade finance, and therefore contribute to the growth of both global trade and the global economy.

The Trade Register also highlights a concern about the effect overly-stringent money laundering regulations have on trade finance flows. Strict regulations have damaged access of some firms to trade and export finance services.

“The intention of the Register was to progress the understanding of trade finance, its importance to global trade and its highly-effective risk mitigation capabilities,” explained Kah Chye Tan, Chair of ICC Banking Commission. “The impact of the Register, however, is much greater. As the latest results show, the Register provides concrete fact-based evidence that trade finance is low risk which, if fully reflected in capital requirements, would help banks to give companies the financing support they need for their exports, and to contribute even further to the global economy as it recovers from the global financial crisis.”

The report’s findings may help policymakers understand the negative consequences such laws have on export finance, which is crucial for economic growth in the developing world.

First launched in 2009 by ICC’s Banking Commission, the report is widely recognized as one of the world’s leading analytical reports on global risks for the trade finance industry—identifying risks across a range of trade finance products and markets.

Read more on the ICC website.

ICC Flags up Concerns Over Effect of Money-Laundering Laws (Financial Times)

Staff contact: Eva Hampl

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Uncertainty Hampering Trade Finance ICC Survey Shows

4547_image002The International Chamber of Commerce’s 2013 survey on trade and finance, released in June, has found that a continued shortage of trade finance for international trade remains a major challenge for economic recovery and development, with many traders depending on overdraft and other corporate loans to finance exports and imports.

The proliferation of new regulations in recent years has increased cost pressure on financial institutions and depressed markets. Some 65% of surveyed experts said implementation of Basel III regulations is affecting the cost of funds and liquidity for trade finance. While many changes have already been implemented or proposed, the regulatory future remains unclear due to lack of harmonization, which remains a major problem for trade financiers and their clients.

The ICC survey positively indicates that despite uneven performance around the world in 2012, the market for trade finance does show signs of slow and steady growth, with temporary trade measures imposed during the financial crisis – including the rise in fees for trade –slowly being removed.

“This shows that financial intermediaries are continuing to satisfy the demand for financing and that investing in trade assets is part of a more sustainable model of banking, said Pascal Lamy, director general of the World Trade Organization, in the survey’s foreword.

Click here to read more on ICC’s website.

Staff contact: Eva Hampl

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ICC Recognized for Trade Services

The ICC Banking Commission has won the Trade and Forfaiting Review
2013 Excellence Award for Best Non-Bank Trade Services Provider.

With 80 years of experience and more than 600 members in over 100 countries, the commission is ICC’s largest commission and has gained a reputation as the most authoritative voice in the field of trade finance.

The ICC Banking Commission rules and related services include rules and guidelines on documentary credits, UCP 600 – the most successful privately drafted rules for trade ever developed – and Bank Payment Obligation rules on supply chain finance.

The award follows the commission’s recent launch of new standards in the field of trade finance, including Uniform Rules for Forfaiting and Bank Payment Obligation and International Standard Banking Practice.  Both publications are available for purchase in the USCIB International Bookstore.

Click here to read more on ICC’s website.

New Report Says Trade Finance Not to Be Feared

4489_image001The International Chamber of Commerce (ICC) today issued Global Risks – Trade Finance 2013 providing a timely, accurate and comprehensive outlook on the risks in trade finance from the global trade finance industry’s perspective.

Based on data from ICC’s Trade Register, a comprehensive online database of over 15 million transactions provided by 21 banks, the new report shows that trade finance is a relatively low-risk asset class that should not be feared by financial institutions, nor over-regulated by governments.

In relation to comparable corporate default rates, the trade register data recorded a lower level of defaulted transactions adding weight to the hypothesis that trade finance transactions enjoy a lower than average likelihood of default. For medium- and long-term Export Credit Agency (ECA)-backed transactions, a similarly relative low risk is observed.

The ICC Trade Register contains data reflecting no less than 60-65% of traditional global trade finance activity, worth approximately US$2-2.5 trillion. Data reveals fewer than 1,800 defaults were made across close to 8.1 million short-term trade finance transactions. This equates to an approximate 0.02% default rate on a transaction basis. Consolidating the volume of trade and export finance and the likelihood of default for trade and export finance products, the ICC Trade Register is vital to crafting fair regulations necessary for a well-functioning global trading and banking system.

“The ICC Trade Register has been instrumental in fostering dialogue with regulators on a global scale. The integrity of the data is proven and is a strong incentive for other banks to participate,” said Pascal Lamy, director general of the World Trade Organization.

Kah Chye Tan, chair of the ICC Banking Commission and global head of trade and working capital at Barclays said: “I hope that by focusing on the critical connections between default levels in trade finance and the shaping of new regulatory recommendations, decision-makers will be able to engage collectively in efforts to improve the global financial system’s overall resilience.”

Read more, and download a copy of Global Risks – Trade Finance 2013, on the ICC website.

Staff contact: Eva Hampl

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Developing Countries Continue to Lead Trade Growth

229 banks in 100 countries took part in the survey.
229 banks in 100 countries took part in the survey.

Developing nations were the key drivers of growth in international trade for 2011, in spite of the volatility caused by the international financial crisis, according to a report published today by the International Chamber of Commerce, the world business organization for which USCIB serves as the American national committee.

This year’s ICC Global Survey on Trade and Finance – titled “Rethinking Trade and Finance” – notes that after a year of upheavals, annual trade volume grew 6.6 percent in 2011, slightly above forecasts by the World Trade Organization. After positive growth prospects at the beginning of the year, a series of global shocks including the Arab Spring, the tsunami in Japan and the continuation of the global debt crises, resulted in an uneven performance for the year.

The survey, which provides some of the most important international data on trade finance, suggests the current environment is dampening prospects for 2012, with annual trade growth forecast at 5.2 percent this year, increasing to 7.2 percent in 2013, according to the report.

Developing countries continued to lead trade growth in spite of the slowdown towards the end of the year. South Asia exports, driven by soaring Indian trade with China, outperformed other developing regions in the first three quarters of 2011, but subsequently plummeted.

The report – in which representatives of 229 banks in 100 countries, a sharp increase on last year, took part – reveals that China’s trade experienced particularly volatile growth throughout the year, and exports from East Asia have fallen. Many major developing countries in the region are experiencing a slowdown in growth due to a tightening of domestic policy initiatives introduced between late 2010 and early 2011 to combat high inflation.

Read more on ICC’s website.

Staff contact: Eva Hampl

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The Future of Trade Finance: Outlook 2011

By Michael F. Quinn, Managing Director, JP Morgan Global Trade and Chair of USCIB’s Banking Committee

As 2009 ended, we viewed the global economy – and its lifeblood, trade – through the prism of cautious optimism. The limited trade finance available from strong providers had been supplemented by central banks and international finance organizations. To keep the wheels of commerce turning, central banks had also injected liquidity into local economies and assisted in deleveraging bloated balance sheets. In markets where local action was weak or nonexistent, massive trade finance initiatives by various regional and global development banks had delivered much-needed liquidity. For all these reasons, we saw 2010 as the year in which the global economy would  receive a strong push along its road to recovery.

Trade rebounds

Throughout 2010,this proved to be the case. Economies in Asia and Latin America stayed strong as intra-Asia and South-South trade continued to show growth and vitality, although the rebound in Western Europe and the United States was slower, and some regions — Africa, Central Asia and Central America  — continued to lag behind.  Throughout 2010, demand for manufactured and finished goods increased. The voracious appetite of China and India for raw materials to support their internal infrastructure and increased production capacity continued unabated, keeping commodity flows strong as well . In the US, consumers who saw low inflation and a marked improvement in returns on investment came back from the sidelines, showing their famous American optimism even as housing values continued to erode and the job market failed to improve. Europe’s economic engine, Germany, resumed its traditionally strong performance, providing stability and funding to the Eurozone economies.  Global supply chains were restored — and in some cases, streamlined.  The shipping industry, which had over-invested in capacity in boom times, adjusted capacity to meet demand while taking less efficient equipment out of inventory.  Countries not previously engaged in global trade entered the market as the new low cost providers.  The evidence of these global improvements was faster growth in Trade than the WTO had originally envisioned. Its original growth forecast for 2010 was 9%; the actual figure is a considerably higher 14.5%.

In 2010, Letters of Credit usage continued to remain flat to the ’09 exit rate, with volume concentrated in support of Small and Medium sized Enterprises (SMEs) and smaller economies.  Dollar values tended to increase, tracking the rising costs of commodities as well as consumer goods and electronics orders that were the largest seen since early 2008. J.P. Morgan’s correspondent bank customers increased their demand for dollar-based financing to support the needs of their local customers, but from all appearances the transactions financed were open account.  Supply chain finance demand continued its growth trajectory as major buyers continued to strengthen their supply chains while negotiating more favorable terms.  As sellers showed more appetite for their counterparty’s paper, previously constrained liquidity sources began freeing  up capacity. Highly structured trade finance transactions re-emerged, but with greater transparency and fortified documentation.  The credit insurance market also saw improvement as overall trade flows grew and underwriting became more viable.

In 2011, with mostly good news on a macroeconomic front, Trade Finance pricing continues to fall. In many markets, prices are now at or near pre-crisis levels.  Secondary markets have been restored, with investor appetite continuing to increase and ramping to near pre-crisis capacity through a combination of direct participation in deals and continued utilization of development bank  support programs.  Market participation has also expanded to pre-crisis levels as banks that withdrew during the crisis returned.  Unfortunately, some are now demonstrating the bad behavior that was in evidence before the crisis and taking risk without reasonable and rational return.

Trade trend: Up, with some possible turbulence

A repercussion of the economic crisis for the banking community has been intensified scrutiny by the local and global regulators working to prevent a reoccurrence of the ’08 debacle. Basel III emerged in 2010, sending shock waves through the banking industry. The proposed requirements for trade transactions — increased capital, higher risk premiums –are causing banks to seriously reconsider their involvement in the trade finance arena.  Especially troubling are proposals to dramatically increase the capital required to support off-balance sheet documentary credits. The Asset Value Correlation factor, which impacts credit exposure to other financial institutions, and the Liquidity Ratio, which implies that Export Credit Agency lending will be considered illiquid, promise to raise the cost of trade loans significantly.  Uncertainty about Basel III is also challenging trade bankers, since much of the implementation timing and actual capital impact of Basel III will be determined by local regulators. On another regulatory front, global sanctions imposed on Iran by the United Nations have also had a major impact on most banks, requiring greater scrutiny of transportation information associated with trade transactions.  As local “know your customer” requirements diverge, global banking could become increasingly fragmented, impeding the flow of information and documentation among buyers, sellers and bankers.

Despite these challenges and complexities, our global trade outlook for 2011 and beyond is bullish.  Major trading partners are expected to continue their rebound or growth trajectories.  Trade finance will remain in demand, but capacity in most markets will continue to improve, reducing prices even further.  Initial forecasts indicate that by early 2012, global trade will have recouped its losses and will resume its traditional growth rates. Other than in credit constrained markets, the expectation is that the multilateral financing vehicles will diminish in importance in the primary and secondary markets, but will remain as a safety net in the event of a double dip recession. Letter of Credit utilization will continue to be concentrated in SME markets and the smaller economies, since their growth prospects are not as favorable as the major markets. Priming the pump in these markets continues to be challenging. For any financial institution other than donor organizations, the ability to do effective KYC is both problematic and not cost effective, given the relative size of the parties. This lack of access to traditional bank funding  will further impede economic development efforts in this sector.

Though increasingly less likely, the threat of a double dip in 2011 remains as deleveraging and the purging of “bad” assets continue unabated. The dreaded risk of inflation will also lurk as the cheap liquidity used to stoke economies after the crisis is reduced or eliminated. China’s strong internal inflation is now threatening low cost exporters. Brazil’s commodity boom is showing signs of contributing to inflationary pressure; Argentina seems to be suffering from the same complaint. In the Eurozone, any future disruptions threatening the fundamentals of its currency will force the European Union’s strong countries to take collective action. Increased volatility in sovereign risk and foreign exchange rates may create another dimension of risk in this year’s trade environment.  A “wild card” to the trajectory of global trade growth is the seismic shift in governments in North Africa and the Middle East.  Immediate and obvious impact will be on the price of oil which has implications for the almost every country but could be particularly harmful to economies which are still struggling to regain momentum.  Austerity measures taken in the United Kingdom and contemplated in other markets could adversely impact global economic growth and have a knock-on effect among trading partners. But whatever bumps we encounter on the road to recovery, we remain optimistic about this year’s prospects for global trade and  trade finance.

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ICC Delivers Trade Finance and Regulatory Messages to EU

ICC’s Europe Region Consultative Group convened in Brussels to address issues of importance to international trade.
ICC’s Europe Region Consultative Group convened in Brussels to address issues of importance to international trade.

The International Chamber of Commerce (ICC), USCIB’s affiliate, recently presented key trade finance messages, along with a host of regulatory concerns, to Olli Rehn, the European Union commissioner responsible for economic and monetary affairs, in Brussels.

The ICC Europe Region Consultative Group met March 28-29 in the Belgian capital, where they met with a number of EU representatives to address issues of importance to international trade. Martin Granholm, ICC regional coordinator for the Europe Region, underlined trade financing challenges in his meeting with Mr. Rehn.

While global trade flows rebounded across many regions in 2010, high pricing has meant that traders in many low-income countries still face difficulties accessing affordable financing. These were the findings of the ICC Trade and Finance Global Survey 2011, which polled representatives from 210 banks in 94 countries.

The European Commission is a key player in new global regulatory initiatives for the banking sector. Mr. Granholm, who is also an ICC Executive Board member, emphasized during his meeting that companies all over the world are concerned about the impact of such regulations, including the Basel Committee on Banking Supervision document known as Basel III, on the financing of international trade.

Click here to read more on ICC’s website.

Staff contact: Eva Hampl

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ICC website

Global Trade Recovery Faces Difficulties Across Many Low-Income Countries

Most respondents agreed in the Survey that business on the whole has been significantly improving since the final quarter of 2009
Most respondents agreed in the Survey that business on the whole has been significantly improving since the final quarter of 2009

Global trade flows rebounded across many regions in 2010, according to latest trade and finance global survey from USCIB’s affiliate, the International Chamber of Commerce (ICC), but high pricing meant that traders in many low-income countries still faced difficulties accessing affordable trade finance.

Representatives from 210 banks in 94 countries responded to the ICC survey, which asked for their opinion, as well as statistics, on the current trade finance landscape in their respective countries. The survey, the fourth consecutive ICC poll of its kind, registered 30 percent more responses than in the previous year, in terms of the number of banks.

Recovery worldwide has been driven by increased trade in North America, Europe and Asia, as well as between Asia and the rest of the world, according to the survey. Other regions, especially Africa, continued to have stressed markets, and the cost of trade finance also remained high in many parts of Asia and Latin America.

Traders in many low-income countries still have considerable difficulty accessing trade finance at an affordable cost, particularly for import finance. One positive development is that the average price for letters of credit, or “L/Cs”, in large emerging economies fell from 150-250 basis points in 2009 to 70-150 basis points in 2010.

“What is needed now is a more targeted use of resources, focusing on the poorer countries and small and medium sized enterprises around the world,” said Pascal Lamy, director general of the World Trade Organization. “They should not be paying the high price for the repair and re-regulation of the global finance industry.”

Most respondents, however, agreed in the survey – which was commissioned by the WTO Expert Group on Trade Finance to track the developments in the industry – that business on the whole has been significantly improving since the final quarter of 2009. Markets in several advanced economies are quickly returning to normal trading conditions, in terms of liquidity and the availability of trade finance. The acceptance of risk and pricing has also become more favorable.

The 2003-2010 SWIFT trade traffic figures, which were provided to ICC on an exclusive basis, confirm that, overall, the downward trend in volumes experienced in 2008 and 2009 is now over. There were a total of 42.9 million transactions registered in 2010, representing a 5.81 percent increase over 2009 volumes, which stood at 40.5 million (rounded).

Results have been uneven across regions, according to SWIFT. Asia-Pacific continues to register far greater volumes for sent (import) messages. The regions with the largest volumes   ̶  Asia-Pacific, Europe-Eurozone and North America   ̶  showed larger fluctuations than those with smaller volumes.

Africa showed the highest growth between 2009 and 2010, at 21.2 percent, followed by Asia-Pacific with 10.1 percent and Central & Latin America with 9.7 percent. However, it was the large volume of transactions in Asia that drove the upswing in SWIFT traffic, rather than Africa, where volumes were small.

Banks responding to the ICC Survey witnessed an increasing demand for bank-intermediated L/Cs, which are particularly favoured by traders and producers in developing countries with weak institutions.

Survey respondents were concerned about the impact of new regulatory initiatives, in particular the new requirements of the Basel Committee on Banking Supervision document known as Basel III, on the financing of international trade.

There has been concern that a one-size-fits-all approach to regulation could threaten trade finance in emerging markets dependant on trade.

Banks argue that rules set by bank regulators impose capital requirements on trade finance and are disproportionately high considering the relative safety of these mechanisms. The rules, they say, force them to lock up funds that could otherwise be used to support trade.

The Survey revealed that respondents are not only wary of these regulations, but also do not have a clear understanding of them. When asked the question “Do you anticipate that the Basel III requirements will cause your bank to re-assess its trade finance strategy and products?” 34 percent indicated that the new regulatory regime would make their financial institution reconsider its trade finance strategy. At the same time, 57 percent of respondents answered that they were lacking sufficient information on the new regulations.

“The regulators should step up their engagement with the industry and seek feedback to ensure that the regulations are on track to achieving what they are intended to accomplish,” said ICC Banking Commission Chair Kah Chye Tan.

ICC research has shown that, contrary to the beliefs underpinning new regulations, trade finance is low risk and self-liquidating in nature. In 2010, ICC developed the International Trade Credit (Loss) Register for collecting performance data in trade finance.

The register specifically examined the default risk of trade finance instruments between 2005 and 2009. Out of some 5.2 million transactions, with a total value of over US$2.5 trillion, ICC found that off-balance sheet trade finance transactions had an average tenor of just 80 days and an insignificant incidence of default. Even during the global economic downturn, trade finance transactions had relatively low default levels, with fewer than 500 defaults for 2.8 million transactions.

“This initiative is particularly useful in providing evidence that trade finance is safe and worth promoting,” said Mr. Lamy.

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Big Changes in Store for the Little Old Letter of Credit

By Donald R. Smith

Paper and PenIt is estimated that between ten and 15 percent of all international trade – amounting to more than a trillion dollars per year – utilizes letters of credit.  They are a tried and true instrument of global commerce – so tried and true, perhaps, that those not involved in trade finance would assume they never change.

But in international trade, as in everything, change is inevitable.  And when it comes to letters of credit, the International Chamber of Commerce, the world business organization that forms a key part of USCIB’s global network, is the instrument of that change.

Over 70 years ago, to overcome the conflicting laws on letter of credit in different countries, ICC first issued its Uniform Customs and Practices, or UCP.  Used by letter of credit practitioners worldwide, the UCP rules are the most successful private rules for trade ever developed, providing the basis for billions of dollars in trade transactions every year.

They have undergone periodic revisions to keep pace with changing usage and the fast-paced nature of global trade.  The latest such exercise recently concluded when, at an October meeting in Paris of ICC’s Banking Commission, the newest version, UCP 600, was adopted by a unanimous vote of 91-0.

What’s New in UCP 600?

The revision to ICC’s rules for letters of credit, which will come into effect on July 1, 2007, incorporates a number of changes from the previous version, UCP 500:

  • New sections on “definitions” and “interpretations” have been added to clarify the meaning of ambiguous terms
  • The phrase “reasonable time” for acceptance or refusal of documents has been replaced by a “maximum of five banking days”
  • New provisions allow for the discounting of deferred payment credits
  • Banks can now accept an insurance document that contains reference to any exclusion clause

Learn more at

A very brief history of the present revision will put this into perspective.  In addition to setting the rules for letters of credit, ICC also interprets these rules when discrepancies or disputes occur.  At a 2002 meeting of the ICC Banking Commission, technical advisor Gary Collyer was asked to examine the then-current UCP500 and found that seven articles accounted for more than 55 percent of the ICC’s rulings and outline the major issues at stake.

Once a technical review had been completed, draft articles were circulated to commission members, and a consultative group made up of experts appointed by ICC national committees set up to fine-tune the new rules.

Mr. Collyer recommended bringing together the multitude of documents produced by the ICC Banking Commission under one framework, creating an environment with more certainty, not just for document checkers but also for the exporters and the nominating banks involved in letter of credit transactions.

The thrust of the successful revision has been to more firmly place the responsibility upon the issuer to state precisely what the required documents must contain, and by whom they must be issued, thereby reducing discrepancies and increasing the assurance and speed of payment.

There are several major changes in UCP 600 – perhaps the most important are reflected in their structure, as well as in the roles and responsibilities of the parties.  Regular letter of credit users will immediately recognize these as important steps, and infrequent or new users should take note – they need to learn what this is all about (see sidebar).

Mr. Smith is vice president for client services with Norman Technologies and chair of USCIB’s Banking Committee.  Write to him

Nationwide Seminar Series to Explain Rule Changes

So you’re an issuer or user of letters of credit – where do you turn to learn how the new UCP 600 will change the way you do business? The author of this article has teamed with USCIB and experienced trade practice instructor Frank Reynolds to organize a nationwide series of training seminars beginning in January. Each seminar features a full day of expert instruction covering the changes from UCP 500 to UCP 600 and how they apply to actual situations, from application through presentation. Who should attend? Exporters, importers, forwarders, customs brokers, carriers, and those bankers wishing to not only learn the rules but how their clients perceive them. To learn more, click here.

This article appeared in the Winter 2006-2007 issue of International Business, USCIB’s flagship publication.  For more information or to subscribe, click here.
This article appeared in the Winter 2006-2007 issue of International Business, USCIB’s flagship publication. For more information or to subscribe, click here.

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USCIB Guides Effort to Determine Standard Letter of Credit Practices

Banking & Trade Finance:

USCIB Guides Effort to Determine Standard Letter of Credit Practices

It is estimated that between 60 and 70 percent of letters of credit contain discrepancies in their first presentation,
resulting in non-payment.  These are often caused by differences in personal opinions, experiences amongst practitioners, subjective approaches and questions of interpretation.

ICC is already the arbiter of banking technique and practice under UCP 500, its universally accepted rules on letters of credit.  But the more than 600 queries received since publication of the 1993 revision of UCP 500 clearly indicates the need for additional guidance.  Now, ICC is seeking to harmonize banking practices by formulating and articulating “international standard banking practice” in more complete detail than UCP 500 could achieve on its own.

Donald Smith (Citibank), who chairs USCIB’s Banking Committee, helped lead an ICC task force documenting international standard banking practices, as defined in UCP 500, and articulating what these practices mean to practitioners.  The task force had the difficult job of documenting – but not creating – established practice, neither altering nor amending UCP 500 but rather determining the meaning of stated practices and how those practices are put into application consistent with applicable ICC opinions.

By publishing international standard banking practices, ICC hopes to increase the transparency of the process for all parties and to reduce the frequency of avoidable discrepancies.  The ICC Banking Commission is expected to approve this document at its October 30 meeting.

Subcommittees focused on the groups of practices that received the most inquiries, including: alterations, certificates of origin, drafts, signing of documents, beneficiary and applicant addresses on documents, trade terms, mathematical calculations, combining documents, transport documents and insurance documents.

When questions arose as to the target audience for this publication, the committee quickly discovered that with so many technical aspects to every point under discussion, the target audience would inevitably be all users of documentary letters of credit.


Staff contact: Heather Shaw

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