UCP-600 Article-3 Interpretations

Where applicable, words in the singular include the plural and in the plural include the singular.

We can accept the document if given in singular in letter of credit and presented documents shown as plural or vice versa, however, that should not change the meaning of the word. 

-A credit is irrevocable even if there is no indication to that effect.

It says that even if we don’t mention in field 40A of letter of credit as “irrevocable” it will deemed to be irrevocable and can’t be cancelled or amended without the consent of all the parties of the letter of credit. 

-A document may be signed by handwriting, facsimile signature, perforated signature, stamp, symbol or any other mechanical or electronic method of authentication.

Let’s first understand what facsimile and perforated signature is-Facsimile: a facsimile signature means the reproduction by engraving, imprinting, stamping, or other means of the manual signature, we can refer in below example:

Perforated signature: signature by making hole on the paper or on any other object, refer below for example:

A signature can be done as per letter of credit requirement or ICC rules, in handwriting, facsimile, perforated, any rubber stamp, any symbol or any other mechanical method which shows that the signature is there, here electronic signature means data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign, it can be mentioned on the document that it is electronically signed however, we need an URL or Link where signature can be verified electronically, though as per ICC guidelines for bankers we do not need to do the verification part.

Example of an electronic signature:

 - A requirement for a document to be legalized, visaed, certified or similar will be satisfied by any signature, mark, stamp or label on the document which appears to satisfy that requirement.

Lets understand the word meaning first-

Legalization, visaed or certification: A third person/entity to make the document legal, visaed or certified by signing or stamping (examples- notary service, school certificates, and diplomas), Above para of article 3 UCP says that any form of signature will suffice the requirement for legalization, visaed, or certifications.

- Branches of a bank in different countries are considered to be separate banks.

We can understand it by taking an example, like Bank of India, India and Bank of India, London will be treated as two different banks in terms of ICC rules.

- Terms such as "first class", "well known", "qualified", "independent", "official", "competent" or "local" used to describe the issuer of a document allow any issuer except the beneficiary to issue that document.

If documents have been asked to issue using any of the above word, it means that issuer is referring to a third party and that particular document can be issued by anyone (apart from money laundering and sanction prospective) except beneficiary.

-Unless required to be used in a document, words such as "prompt", "immediately" or "as soon as possible "will be disregarded.

We should avoid such a wording to add as an integral part of the letter of credit until it is not the requirement of the document, in other cases we can disregard such a wording.

-The expression "on or about" or similar will be interpreted as a stipulation that an event is to occur during a period of five calendar days before until five calendar days after the specified date, both start and end dates included.

We can take an example to understand the above one, suppose letter of credit called shipment to be done on or about (any one of them) 10^th March 22, so here we will take up 5 days apart from 10^th March backward and forward, so five day backward will be 9,8,7,6,5 March and forward 11,12,13,14,15 March so it can be done from 5^th to 15^th March 2022, it will lead to total period of 11 days.

-The words "to", "until", "till", "from" and "between" when used to determine a period of shipment include the date or dates mentioned, and the words "before" and "after" exclude the date mentioned.

-we can go as per simple wording to calculate the period of shipment, let’s take an example, if letter of credit says shipment to be done until/till/from (any one of them) 10^th March which means last date of shipment is 10^th March, likewise if it says between 1^st to 10^th march so both start and end date included.

-The words "from" and "after" when used to determine a maturity date exclude the date mentioned.

The point to note is, word “from” here exclude if we calculate the maturity, if letter of credit says 30 days from shipment date and shipment date is 10^th March, so maturity will be calculated from 11^th march to 30.

-The terms "first half" and "second half" of a month shall be construed respectively as the 1st to the 15th and the 16th to the last day of the month, all dates inclusive.

First half is 1^st to 15^th of the month, and second half is 16^th to last day of the month.

-The terms "beginning", "middle" and "end" of a month shall be construed respectively as the 1st to the 10th, the 11th to the 20th and the 21st to the last day of the month, all dates inclusive.

Beginning-1^st to 10^th of the month, middle- 11^th to 20^th, end- 21^st to last day of the month.