Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
The ICC Banking Commission has released three Draft Opinions that will be discussed at its next opinion review session that will be conducted virtually on 20 April 2022. The numbered opinions deal with the following matters:
TA922 – For a counter- guarantee and a guarantee both issued subject to URDG758, guarantee included a reduction schedule and guarantor incorrectly extended 50% of its guarantee while counter- guarantee contained no reduction schedule similar to guarantee. Guarantor asked whether counter-guarantor wrongly refused its claim for the non-reduced counter-guarantee amount.
TA923 – Query asked series of questions pertaining to a company’s signing of a bill of lading that upon B/L presentation a confirming bank refused due to UCP600 Article 20(a)(i) and further contended was not in line with ISBP745 Paragraph E5(c).
TA924 – Query asked whether a presented insurance certificate including pre-printed wording referring to “details contained in the System Database” makes the insurance document non-UCP compliant.
Note: Between the ICC Banking Commission’s previous set of Opinions covered in October 2021 (TA915-TA920) and this set, a number gap exists as TA921 was withdrawn by its initiator.
Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
On 15 Feb 2023, DCSA members pledged to issue 50% of bills of lading (B/Ls) electronically by 2028 and 100% by 2030, aiming to cut costs and boost global trade.
