DC Insight

There is great deal of variety in this issue of DCInsight. Of course, we continue to bring you assessments of UCP 600, which is now only a year old. In our "Expert commentary", Donald Smith sets the tone by laying out a list of lessons practitioners should have learned by now when applying the new rules. After pointing out that many of the principles in UCP 500 are also present in 600, Smith asks the perfectly reasonable question:

"Why would someone now object to something with which they have lived perfectly well through the past version(s)?" Those who complain about certain provisions in 600 might well ponder that one. Other articles explore some of the specifics in the new rules. Kim Christensen takes a careful look at the transport articles and at issues such as addresses and contact details, port-ofreceipt v. port-of-loading and the master's signature on certain documents. He concludes that "much of the practice remains to be clarified". Pavel Andrle zeroes in on freight forwarder documents, one of the most contentious issues during the revision.

Quite apart from UCP 600, other articles look into long-standing problems in credit practice. Jee Meng Chen contributes another of his perceptive articles about back-to-back credits. Using a case study and recounting it with humour and precision, he demonstrates the complexities of back-to-back transactions and how one FOB oil shipment deal went disastrously wrong. His conclusion: "Never ignore the fundamental requirement of credit risk management - proper due diligence."

Finally, one of our regular contributors, Brooke Wunnicke, gives us an inside look at US bankruptcy laws and how they impact on letters of credit. In a time when bankruptcies, particularly in the US, are all too frequent, it pays to know some of the intricacies of US law. With variety like this, there should be something here for every taste.