Since October 2006 when the latest revision of the Uniform Customs and Practice for Documentary Credits (UCP 600) was announced, bankers have been learning about and working with the new rules.

Now some banks are taking UCP 600 to their customers.

Targeted businesses

Union National Bank (UNB) for example recently organised a series of intensive seminars on the revised UCP for its corporate clients involved with international import and export trade.

The bank based in the United Arab Emirates says it targeted businesses in Abu Dhabi, Dubai and Sharjah.

Important changes

More than 150 corporate clients attended one event, according to UNB, where senior managers appear concerned that clients understand the new rules and procedures.

"The importance of the changes made in UCP 600 are highly significant and through these sessions, the bank intends to explain these changes and it's implications to our corporate customers," says head of UNB's operations division, Mr Qamar uz Zaman.

Discussions

Participants at the seminar were taken through a detailed presentation of the fundamentals of international trade finance but focused on the implementation of the new UCP.

Discussions focused on how the trade finance business has evolved over the years and the importance of having a clear and thorough understanding of basic principles.

UCP 600 came into effect on 1 July 2007 and is the sixth revision of the rules since they were first promulgated in 1933.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.