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Nordea takes part in ICCs revision of the ISBP

 

An important reference when an exporter is making the documents to be presented under a documentary credit is of course the UCP 600 – i.e. the international rules for documentary credits. Similar important however is the ISBP.

ISBP is an abbreviation for International Standard Banking Practice for the Examination of Documents under Documentary Credits.

This publication is today a valuable tool for companies and banks working with documentary credits. It describes how the UCP 600 is to be applied in practice, taking in the official opinions given by the ICC Banking Commission – primarily related to the banks examination of the documents presented.

In November 2009 the ICC Banking Commission decides to initiate a revision of the ISBP. The aim for the new ISBP is to cover the numerous documents not currently mentioned in the ISBP, together with the international standard banking practices in relation to for example transferable credits, assignment of proceeds, revolving and installment drawing credits.

In February 2010 an “ISBP Drafting Group” was constituted. The group consists of 12 international experts on documentary credits. Kim Christensen, being Head of Trade Products and Business Relations and Chairman of the Expert Group in Nordea Trade Finance, is part of this group.

The members of the “ISBP Drafting Group” are as follows:

  • Gary Collyer (Chair)
  • Dan Taylor (Vice Chair)
  • Zha Zhongmin (China)
  • Kim Christensen (Denmark)
  • Wolfgang Heiter (Germany)
  • R.V. Balasubramani (India)
  • Carlo Di Ninni (Italy)
  • Ed Jongenelen (Netherlands)
  • Rene Mueller (Switzerland)
  • Iqbal Karmally (UAE)
  • Graham Christiansen (UK)
  • Charnell Williams (USA)
  • Observer: Leo Cullen (Coastline Solutions, Ireland)

The first version of the ISBP was published in 2003 – being subject to UCP 500 – the documentary credit rules applicable at that time. In connection with the UCP 600 which came into force 1 July 2007 the ISBP was updated and published as ICC Publication No. 681.

The ISBP consist of 185 paragraphs on various topics and documents. For example paragraph 21 which reads:

Expressions such as "shipping documents", "stale documents acceptable", "third party documents acceptable" and "exporting country" should not be used as they are not defined in UCP 600. If used in a credit, their meaning should be made apparent. If not, they have the following meaning under international standard banking practice:

a. "shipping documents" - all documents (not only transport documents), except drafts, required by the credit.

b. "stale documents acceptable" - documents presented later than 21 calendar days after the date of shipment are acceptable as long as they are presented no later than the expiry date for presentation as stated in the credit.