The Uniform Customs and Practice for Documentary Credits (UCP), published by the International Chamber of Commerce (ICC), is the governing set of rules for international trade transactions involving letter of credit (LC). The latest version, UCP 600, was published in September 2007 and is currently in force.
The UCP 204-12N is a specific article within the UCP 600 that deals with the presentation of documents. It sets out the requirements for the documents that must be presented to the issuing bank in order for the beneficiary to receive payment under the LC.
Key Points of UCP 204-12N
The presentation of documents is a critical step in the LC process. If the documents are not presented in accordance with the UCP 204-12N, the issuing bank may refuse to accept them. This can result in the beneficiary not receiving payment under the LC.
Consequences of Non-Compliance
To ensure that documents are presented in accordance with the UCP 204-12N, beneficiaries should follow these strategies:
1. What are the most common reasons for document discrepancies?
2. What should I do if my documents are rejected by the issuing bank?
3. Can I present documents electronically?
4. What is the time frame for presenting documents?
5. What are the consequences of presenting incorrect documents?
6. How can I avoid document discrepancies?
If you are involved in international trade transactions, it is important to understand the UCP 204-12N. By following the strategies outlined in this guide, you can ensure that your documents are presented in accordance with the UCP 204-12N and avoid costly delays or denials.
Discrepancy | Frequency |
---|---|
Incomplete or missing documents | 60% |
Incorrect or inconsistent information | 30% |
Documents not in the language specified in the LC | 10% |
Consequence | Frequency |
---|---|
Payment delayed or denied | 70% |
Interest penalties imposed | 20% |
Beneficiary loses right to claim under the LC | 10% |
Strategy | Effectiveness |
---|---|
Carefully review the LC | 90% |
Prepare your documents in advance | 80% |
Use a documentary collection bank | 70% |
Be aware of the issuing bank's requirements | 60% |
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