A Proposal for Establishing Examination Criteria of Bill of Exchange under the International Standard Banking Practice (ISBP) 745

Abstract

When UCP 500 was revised to UCP 600 by the International Chamber of Commerce (ICC) in July 2007, the International Standard Banking Practice for the Examination of Documents under documentary credits (hereinafter referred to as “ISBP 681”) was duly revised by the ICC Banking Commission on April 17, 2013. The ISBP 681 was fully revised to ISBP 745 in July 2013. The ISBP 745 prescribes the examination criteria of bill of exchange along with shipping documents. The bill of exchange stated in the ISBP 745 must be presented to the issuing bank by the beneficiary. The practitioners such as bankers, buyers and sellers related to the letter of credit transaction need to know well the provisions of UCP 600 and ISBP 745. Otherwise, disputes related to letter of credit between the practitioners can happen. Therefore, the purpose of this paper is to reduce the disputes occurring in letters of credit transactions by providing a proposal establishing the examination criteria of bill of exchange provided in ISBP 745.