Uniform customs and practice for documentary credits ucp 600

Abstract

Documentary credit is a way of payment used for international transactions, since it allows payments to be made from one place to another distant one. Uniform Customs Practices is a set of practices that have been collected and ordered by the International Chamber of Commerce to govern the bank documentary credits and their version 600 entered into force in July 1st, 2007. Documentary credits are a corner stone of the international trade, they consist of a complex network of legal and financial operations between the party who opens the credit, through its bank, to be made to the bank of a second party, once all the requirements of the credit are met.