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Documentary Credit World

  2. Trade Finance
  3. Documentary Credit World
  4. January 2024 Vol. 28 No.1
Documentary Credit World (DCW) - January 2024 Vol. 28 No. 1 section - Updates

Ground Rules for ISBP Review Process Disclosed

After receiving approval in October 2023 from its higher authority within the ICC structure to establish a working group for purposes of evaluating ISBP 821 to assess if existing content in line with current market practice and to consider digital practices, the ICC Banking Commission formulated its plan for the task.

From the outset, certain “ground rules” were put in place to ensure uniformity and transparency throughout the process. These guiding principles were revealed by ICC Banking Commission Senior Technical Advisor David Meynell following treatment of ICC Opinions at the Commission’s quarterly discussion session The “ground rules” include:

  • Suggestions must be based upon a revised requirement from the market, or a gap that has been identified
  • Do not try to fix something that is “not broken” - if a process is working, then no business rationale to change
  • Changing text for the sake of it will create more questions and problems than is necessary
  • Style of wording must be consistent with existing text
  • Ensure clarity and avoid unambiguity which may lead to misinterpretation
  • Address issues relating to electronic documents and digitalisation of trade – how and where to incorporate?
  • Consider “non-bankers” involved in document preparation and examination

Meynell further informed that the 25-person Working Group is divided into three teams with responsibility for review of three distinct areas of ISBP: A) Preliminary Considerations, General Principles, Drafts, Invoices; B) Multimodal Transport, Bill of Lading, Non-negotiable Sea Waybill, Charter Party Bill of Lading, Air Transport, Road, rail, or inland waterway; and C) Insurance, Certificate of Origin, Packing List, Weight List, Beneficiary’s Certificate, Certificates.

In updating ICC Banking Commission members on the project’s status, Meynell explained that more than 70 potential issues have been identified and although several suggestions are deemed as “out of scope”, about 40 issues are currently under consideration for relevance within a revised ISBP. Meynell added that the Working Group will deliver a detailed overview during the next ICC Banking Commission session in April 2024. Thereafter, the findings will be distributed to ICC National Committees, providing them the opportunity to comment on potential next steps.