ICC releases revised eUCP (Version 2.0) & first-ever eURC (Version 1.0)
The International Chamber of Commerce (ICC) recently published its final text of the revised Electronic Uniform Customs and Practice for Documentary Credits (eUCP Version 2.0) and its first-ever supplement of the Uniform Rules for Collections URC 522 (eURC Version 1.0).
According to the ICC website, eUCP Version 2.0 supplements the ICC’s UCP No. 600 (2007 Revision) “in order to accommodate presentation of electronic records alone or in combination with paper documents […] where the credit indicates that it is subject to the eUCP”, while eURC Version 1.0 supplements the ICC’s URC 522 (1995 Revision) to similarly accommodate for electronic presentation or mixed electronic and paper document presentation “where a collection instruction indicates that it is subject to the eURC”.
Both revisions come into force on 01 July 2019.
The ICC adds that the eUCP and eURC rules have been intentionally developed with a version number to enable regular updates without impacting upon other existing ICC rules, in turn “reducing any time required to develop potential identified revisions in the future”.
The move comes as part of the ICC Banking Commission’s ongoing work in assisting banks and corporates to accelerate adoption of paperless trade, focusing on three core pillars:
- eCompliance – evaluating ICC rules and guidelines to ensure they are "e" compliant and enable banks to accept data vs. documents
- eLegal – conducting legal reviews of enforceability of digital vs. paper bills of lading, which banks use as security for trade finance transactions; and
- eStandards –developing and refining a set of minimum standards to enable digital connectivity, focused on legal, liability, information security and technology
It is our view that the ICC’s latest eUCP revision plus introduction of eURC are major milestones for digital trade – reflecting global and industry-wide consensus towards making trade finance processes and rules fit for the digital era.