UCP600 Article 5

RaymondC · Post by **RaymondC** » Sat Nov 25, 2006 12:00 am

UCP600 Article 5 states "Banks deal with documents and not with goods, services or performance to which the documents may relate".

UCP500 Article 4 states "In Credit operations all parties concerned deal with documents, and not with goods, services and/or other performances to which the documents may relate".

It seems UCP600 implies parties other than banks deal with documents, goods, services ...Nowadays there are quite a number of non-bank inssued LC (Private Label LC) all subject to UCP. Base on the new Articles, as they are not banks, so they could deal with both documents and goods even they subject to UCP600?

KimChristensen · Post by **KimChristensen** » Sun Nov 26, 2006 12:00 am

Dear Raymond,

I do not think this is the point of this change. It is merely to say that importers and exporters of course deal with the goods. Banks on the other hand do not.

I am not sure where you are aiming at. Even if it is a non-bank LC I still do not think that an “issuer” can stop payment based on circumstances regarding the goods if documents comply.

Best regards
Kim