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International Trade vocabulary · Payment Methods and Letters of Credit

UCP 600

Meaning in international trade, with examples

abbreviationAdvanced term

In international trade, UCP 600 means: Uniform Customs and Practice for Documentary Credits: the ICC rules, in force since 2007, that most banks use for issuing and handling letters of credit.

In Turkish: UCP 600, Akreditiflere İlişkin Tek Tip Kurallar ve Uygulamalar

How it is used

Most L/C texts say they are 'subject to UCP 600'. It has 39 articles covering the examination of documents, presentation periods and bank obligations. It is used together with ISBP, which explains how banks check documents in practice.

Example sentences

  1. This credit is subject to UCP 600.

  2. Under UCP 600, documents must be presented no later than 21 days after shipment unless the credit says otherwise.

Common collocations

  • subject to UCP 600
  • under UCP 600
  • UCP 600 article
  • UCP 600 rules
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
  • discrepancyA difference between the documents presented and the terms of a letter of credit, or between the documents themselves, that gives the bank a reason to refuse payment.
  • irrevocableDescribes a promise, such as a letter of credit, that cannot be changed or cancelled without the agreement of all the parties concerned.
  • issuing bankThe buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.

More terms: Payment Methods and Letters of Credit

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