eUCP, the supplement to UCP 500 for electronic presentation, is now available in the Rules section of DC-PRO Focus.
The eUCP, when used in conjunction with the UCP, will provide the necessary rules for the presentation of the electronic equivalents of paper documents under letters of credit.
Please use this section of the discussion forum for any comments that you have regarding the use and application of eUCP.
I look forward to lively and informative discussions in this new section of the discussion forum.
Discussions on eUCP
Discussions on eUCP
So as not to disappoint Leo, who I otherwise think could be waiting quite some time for any sort of discussion regarding eUCP (let alone one that is lively and informative), and to emulate the spirit of the great pioneers down the ages (Columbus, Livingstone etc), I hereby make the first subscriber posting to the new section.
In his DC-PRO Focus article ‘Banks gear up for eUCP’ Ron Katz states ‘The strong demand indicates that a number of banks are gearing up for eUCP use when the new supplement comes into force’. However, my impression is that ‘we’ are still very far (a decade or more?) from the creation of an international electronic infrastructure, that meets the requirements of sub-Articles e3b i & ii of eUCP, that would enable the WIDESPREAD use of electronic presentation. This is despite whatever developments there have been with regard to Bolero and @globaltrade. Therefore, use of eUCP will only take place in a small minority of transactions for quite some time to come (a bit like URDG & ISP98). Are others of the same view? If not, why not?
[edited 2/6/02 4:01:44 PM]
In his DC-PRO Focus article ‘Banks gear up for eUCP’ Ron Katz states ‘The strong demand indicates that a number of banks are gearing up for eUCP use when the new supplement comes into force’. However, my impression is that ‘we’ are still very far (a decade or more?) from the creation of an international electronic infrastructure, that meets the requirements of sub-Articles e3b i & ii of eUCP, that would enable the WIDESPREAD use of electronic presentation. This is despite whatever developments there have been with regard to Bolero and @globaltrade. Therefore, use of eUCP will only take place in a small minority of transactions for quite some time to come (a bit like URDG & ISP98). Are others of the same view? If not, why not?
[edited 2/6/02 4:01:44 PM]
-
larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Discussions on eUCP
I concur, in general, with Jeremy's assessment of the likely slow uptake of eUCP.
There are various reasons for this :
1. High entry costs - financial, technical and training
2. Lack of awareness among banks and importers/exporters
3. Although substantial progress has been made in updating e-commerce legislation in Western economies, this has to propagate globally to make eUCP a first preference rather than a poor relation of UCP (in terms of volume).
4. Bankers wholehearted acceptance of eUCP is essential to make it work, but although I dislike generalisations, they tend to be quintessentially conservative. I suspect that the prudence with which they are usually noted may prevent many of them from "dipping their toes in the waters" of eUCP.
On reflection, however, perhaps to-day is not an auspicious day to speak of bankers' prudence in view of the news about the AIB "Nick Leeson version II" scandal happening in the USA.
Laurence
There are various reasons for this :
1. High entry costs - financial, technical and training
2. Lack of awareness among banks and importers/exporters
3. Although substantial progress has been made in updating e-commerce legislation in Western economies, this has to propagate globally to make eUCP a first preference rather than a poor relation of UCP (in terms of volume).
4. Bankers wholehearted acceptance of eUCP is essential to make it work, but although I dislike generalisations, they tend to be quintessentially conservative. I suspect that the prudence with which they are usually noted may prevent many of them from "dipping their toes in the waters" of eUCP.
On reflection, however, perhaps to-day is not an auspicious day to speak of bankers' prudence in view of the news about the AIB "Nick Leeson version II" scandal happening in the USA.
Laurence
Discussions on eUCP
Thank you Mr. Columbus/Jeremy for kicking off this new section to the discussion forum.
I feel that in the short-term it will be pioneers - that can see the potential rewards in investing
in electronic systems (time savings, labour savings, etc) - that will drive the use and development of electronic presentations.
This will result in:
-banks becoming fully geared for electronic presentations to accomodate the larger companies/customers
-costs coming down.
I can envisage significant use of electronic presentations in the short-to-medium term (3-5yrs),however, as you rightly say paper based L/Cs will remain the mainstay in international trade for the next decade - at least.
[edited 2/6/02 5:32:02 PM]
I feel that in the short-term it will be pioneers - that can see the potential rewards in investing
in electronic systems (time savings, labour savings, etc) - that will drive the use and development of electronic presentations.
This will result in:
-banks becoming fully geared for electronic presentations to accomodate the larger companies/customers
-costs coming down.
I can envisage significant use of electronic presentations in the short-to-medium term (3-5yrs),however, as you rightly say paper based L/Cs will remain the mainstay in international trade for the next decade - at least.
[edited 2/6/02 5:32:02 PM]
Discussions on eUCP
Jeremy,
As we have little time assigned for the Discussion Forum, which is not even enough to look at all the comments, we would however like to show some support to Leo by pointing out some of our observations here, which may affect the healthy growth of eUCP.
First, please do not get so sensitive over Ron Katz’s statement, which one would do the same if put on Ron’s shoes. It is sort of grand style opening for a new product from ICC.
DAMAGES TO eUCP BY INCOMPETENT SPEAKERS
What we are worry about is that, from information recently received from registered visitors of our website, a lot of training courses are provided in the market place by institutes even before the eUCP becomes effective, by speakers who know nothing about the eUCP except that they can read English. In the training profession, they are known as "read the book first" speakers. They have never taken part in the development of the Articles during the drafting stage and do not realise the pros and cons arguments about the changes in wordings in the Articles. But they are free to interpret the eUCP Articles according to their own understanding or “guessing”, if you will. The results will be a repetition of the dilemma when UCP 500 was introduced - disputes arise due to different interpretations of the Articles and some are from incompetent speakers. These would hinder the otherwise wider adoption of eUCP as well as healthy development of e-commerce.
http://www.tolee.com
[edited 2/9/02 4:21:17 PM]
As we have little time assigned for the Discussion Forum, which is not even enough to look at all the comments, we would however like to show some support to Leo by pointing out some of our observations here, which may affect the healthy growth of eUCP.
First, please do not get so sensitive over Ron Katz’s statement, which one would do the same if put on Ron’s shoes. It is sort of grand style opening for a new product from ICC.
DAMAGES TO eUCP BY INCOMPETENT SPEAKERS
What we are worry about is that, from information recently received from registered visitors of our website, a lot of training courses are provided in the market place by institutes even before the eUCP becomes effective, by speakers who know nothing about the eUCP except that they can read English. In the training profession, they are known as "read the book first" speakers. They have never taken part in the development of the Articles during the drafting stage and do not realise the pros and cons arguments about the changes in wordings in the Articles. But they are free to interpret the eUCP Articles according to their own understanding or “guessing”, if you will. The results will be a repetition of the dilemma when UCP 500 was introduced - disputes arise due to different interpretations of the Articles and some are from incompetent speakers. These would hinder the otherwise wider adoption of eUCP as well as healthy development of e-commerce.
http://www.tolee.com
[edited 2/9/02 4:21:17 PM]