The International Chamber of Commerce (ICC) has published a compendium of four guidance papers on documentary credit usage for trade finance practitioners.

The papers contemplate requirements for on board notation; the principle of strict compliance; use of drafts under documentary credits, and simple documentary credit format.

On board notation and compliance

Recommendations in respect of the requirements for an on board notation guide banks in the correct interpretation and application of the UCP 600 Rules in relation to on board notations for bills of lading, sea waybills and charter party bills of lading, and for multimodal or combined transport documents, where the first part of the carriage is by sea.

The note on strict compliance seeks to clarify issues concerned with the examination of documents presented under documentary credits, including in respect of the interpretation and application of this doctrine.

Drafts and simple format

The guidance paper on the use of drafts under documentary credits focuses on the best practices around the use of a draft outlining past and current usage of drafts in relation to documentary credits.

Guidance on the simple documentary credit format provides references to best practices to achieve a straightforward, uncomplicated documentary credit format and includes an overview of relevant Swift messaging fields.

More information on the guidance papers can be found here, from where the compendium can also be downloaded.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.