UCP  600                 effective since July 2007

ISBP 745              effective since July 2013

URDG 758             effective since Juy 2011 ( Bank Guarantees)

URC 522               effective since January 1996

ISP  98                 effective since January 1999 (Stand by Letters of Credit)

Irrevocable Letter Of Credit :

Irrevocable Letter Of Credit  is a letter of credit type which can not be cancelled or amended by the issuing bank without the agreement of the parties of the letter of credit transaction. For example, issuing bank has no power to modify letter of credit terms if beneficiary does not find them acceptable. In other words, every amendmend at least requires beneficiary's acceptance in order to be effective. Irrevocable letters of credit give much more payment security to the beneficiaries than revocable letters of credit because of the reasons explained above. As a result irrevocable letters of credit are the types of L/Cs that dominantly seen on the market place.

Banks will only add their confirmation to the irrevocable letters of credit. A confirming bank is not obligated to add its confirmation to any amendmend. Also, transferable letters of credit should not be issued in a revocable form.

Letters of credits are transmitted through banks via a secure and authanticated system which is called SWIFT. There are various swift message types for different situations. For example banks use MT700 ( Message Type 700 ) when issuing a letter of credit. 

UCP 600

UCP 600 is the latest version of the rules that govern letters of credit transactions worldwide. UCP 600 is prepared by International Chamber of Commerce’s (ICC) Commission on Banking Technique and Practice. Its full name is 2007 Revision of Uniform Customs and Practice for Documentary Credits, UCP 600, and (ICC Publication No. 600). The ICC Commission on Banking Technique and Practice approved UCP 600 on 25 October 2006.  The rules have been effective since 1 July 2007.

UCP 500 was the rules that had been in implementation before UCP 600.

ISBP 745 

International Standard Banking Practice - 2013 Edition (ISBP 2013)

As of July 2013 International Standard Banking Practice - ISBP 2013 is the latest and the most comprehensive guide to handling and examining trade documents under letters of credit. ISBP 2013 published by ICC with the ICC Publication No. 745. ICC defines the importance of new International Standard Banking Practice edition with these words "An invaluable source of practical information for trade finance professionals and academics, this revised edition of ISBP provides readers with the latest ICC approved guidelines for all parties to documentary credits. 

ICC emphasize that ISBP 2013 is the best reference book in banking practices for international letters of credit documents subject to UCP 600.

Use of ISBP 2013  has significantly reduced international discrepancies for documentary credits and is regularly used by banking, logistics, insurance, legal and corporate professionals and academics worldwide.

Previous International Standard Banking Practice which is called  ISBP 2007 published in year 2007 by ICC was covering below trade documents:

·         Drafts 

·         Invoices

·         Transport document covering at least two different modes of transport

·         Bill of lading

·         Charter party bill of lading

·         Air transport document

·         Road, rail or inland waterway transport documents

·         Insurance document and coverage

·         Certificates of origin

In addition to above stated documents International Standard Banking Practice - ISBP 2013 also covers;

·         Packing list

·         Weight list

·         Beneficiary certificate

·         Non-negotiable sea waybills

·         Analysis, inspection, health, quantity and quality certificate

All professionals, banking, logistics, insurance, legal and corporate professionals and academics worldwide, who deal with documentary credits can use International Standard Banking Practice - ISBP 2013

History of ISBP publications

International Standard Banking Practice for the Examination of Documents under Documentary Credits - ISBP 2002 - ICC publication No: 470

International Standard Banking Practice for the Examination of Documents under Documentary Credits - ISBP 2007 ICC publication No: 645

International Standard Banking Practice for the Examination of Documents under Documentary Credits - ISBP 2013 ICC Publication No. 745