CDCS Exam Preparation | Key ICC Publications

UCP (Uniform Customs and Practice for Documentary Credits)

UCP (Uniform Customs and Practice for Documentary Credits) is a set of internationally recognized rules governing the use of letters of credit (L/C) in international trade. It was first introduced in 1933 by the International Chamber of Commerce (ICC), and its purpose is to standardize and regulate the processes surrounding documentary credits to ensure consistency and uniformity in international trade transactions.
Since its introduction, UCP has been revised multiple times to reflect the evolving nature of international trade, technological advancements, and changing banking practices.
The current version, UCP 600, was introduced in 2007 and became effective from July 1, 2007. UCP 600 contains 39 articles, which govern the issuance, examination, and negotiation of documentary credits.

ISBP (International Standard Banking Practice)

ISBP is a set of guidelines published by the International Chamber of Commerce (ICC) to ensure consistent practices in the examination of documents under documentary credits. It provides clear instructions to help banks and traders interpret and apply the UCP rules, minimizing discrepancies and facilitating smoother transactions.
History and Development:
First introduced in 2000 as ISBP 645, it was created to address interpretational challenges arising from UCP 500. These guidelines were based on various ICC opinions issued in response to disputes between parties over the correct interpretation of UCP rules. In 2007, ISBP 745 was released, aligning with UCP 600. The latest version, ISBP 821, was published in 2020 to reflect the evolving nature of documentary credit transactions.

Incoterms (International Commercial Terms)

Incoterms are a set of international trade terms developed by the International Chamber of Commerce (ICC) to standardize and simplify the rules governing the responsibilities of buyers and sellers in international transactions. These terms define the allocation of costs, risks, and responsibilities between the parties involved in shipping goods.
The first edition of Incoterms was published in 1936 by the ICC to address the complexities of international trade and shipping. Since then, Incoterms have been revised multiple times to keep pace with changing global trade practices and shipping methods.
The latest version, Incoterms 2020, came into effect on January 1, 2020. This version introduced key changes to reflect modern logistics, including the use of electronic documentation.

Main Incoterms Categories

• Group 1: Rules for any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP.
• Group 2: Rules for sea and inland waterway transport only: FAS, FOB, CFR, CIF.

URR (Uniform Rules for Bank-to-Bank Reimbursements)

URR (Uniform Rules for Bank-to-Bank Reimbursements) is a set of rules established by the International Chamber of Commerce (ICC) to govern bank-to-bank reimbursement arrangements under documentary credits. These rules provide a standardized framework for handling reimbursement claims between the bank of the beneficiary and the bank of the applicant.
URR 525 was introduced by the ICC in 1995 to provide clarity on the bank-to-bank reimbursement process under UCP 500. The rules were revised in 2008 with the introduction of URR 725, aligning with the UCP 600 and addressing evolving practices in trade finance.

eUCP (electronic Uniform Customs and Practice for Documentary Credits)

eUCP is a supplement to the UCP 600 that addresses the use of electronic documents in the context of documentary credits. It was developed by the International Chamber of Commerce (ICC) to modernize and align documentary credit practices with the growing use of electronic transactions in global trade.
eUCP was first introduced in 2000 by the ICC to respond to the increasing adoption of electronic documents in international trade. It was revised in 2007 to align with the UCP 600 and further refine the use of electronic records in documentary credit transactions.

ISP 98 (International Standby Practices 1998)

ISP 98 is a set of rules developed by the International Chamber of Commerce (ICC) for the issuance and operation of standby letters of credit. It serves as a standard for the use of standby letters of credit in international trade and finance.
ISP 98 was introduced by the ICC in 1998 to standardize practices and provide clear guidance on standby letters of credit (SBLCs), distinguishing them from commercial letters of credit. The rules were developed to address the growing use of standby letters of credit as a tool for financial guarantees rather than payment for goods and services.

ABOUT ICC

The International Chamber of Commerce (ICC), founded in 1919 and headquartered in Paris, France, is a leading global business organization with members in over 130 countries. Representing millions of companies, the ICC works to promote free trade and reduce barriers to international commerce.
The core objectives of the ICC are to:

• Advocate for policies that enhance global business and trade.
• Develop international standards and rules, such as UCP 600 (for documentary credits), Incoterms (for trade terms), and ISBP (for documentary credit interpretation).
• Provide dispute resolution and arbitration services through its International Court of Arbitration, offering impartial and efficient solutions for international trade disputes.