One Way eUCP’s Aim to Facilitate Electronic Presentation Can Be Advanced

The Query addressed in ICC Opinion TA.900 (April 2020) involved electronic presentation (e-presentation). With technological development and advancement of electronically-produced documents including SWIFT messages, there are more frequent calls for e- presentation. Trade transactions can be done in paperless fashion on digital platforms by using digitized documents including eB/L. SWIFT is also exploring ways to connect platforms for advancing paperless trade. To advance the digitalization transition of the trade finance industry, ICC has endeavored to drive practice use of eRules that are focused on e-presentation of documents however “the eUCP has largely remained of theoretical value”.¹ Chinese banks have greatly advanced digitalization of LC transactions by using digital platforms, such as Bolero and essDOCs, but e-presentation under LCs needs to be developed and the eUCP has not received significant usage in China. As such, greater use of the eUCP should be motivated to enable and facilitate e-presentation. Due to the issues related to the electronic mode of presentation being complex, they deserve careful discussion.

Summary of Practice Rules on Mode of Presentation
Because of the common use of unique documents of title, the normal mode of presentation under commercial LCs is paper.² UCP600 does not address the mode of presentation directly, but it is expected that all presentations under UCP600 be in paper format as only paper documents are presented under UCP600.3 Additionally, some terms contained in UCP600 such as ‘original’ presume the presentation of paper. As such, UCP600 would apply to the paper documents. ISP98 also reflects the practice that documents will be presented in paper form⁴ and ISP98 Rule 3.06(b) states that: “Where no medium is indicated, to comply a document must be presented as a paper document …”. URDG758 provides that failure to specify the form means that the presentation must be in paper form and URDG758 Article 14(e) states that: “Where the guarantee does not indicate whether a presentation is to be made in electronic or paper form, any presentation shall be made in paper form.”

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UCP600 does not address electronic records and the word “document” is not defined in UCP600, but it provides that a document may be signed by electronic method of authentication⁵ and the eUCP also formulates definitions for terms used in the UCP milieu for the presentation of electronic records. ISP98 permits e-presentation and contains rules regarding e-presentation. ISP98 Rule 3.06(c) states that “A document is not presented as a paper document if it is communicated by electronic means even if the issuer or nominated person receiving it generated a paper document from it.” It contains definitions of the fundamental terms of necessary to utilize e-presentation. It also provides that electronic records is the data be in form of a record and be communicated by electronic means. The data also be capable of being authenticated and examined for compliance. ISP98 further provides that an electronic demand complies when it is presented by a beneficiary that is a SWIFT participant.⁶ URDG758 defines “document” broadly, covering electronic records of information and URDG758 Article 2 (Definitions) states that “Document means a signed or unsigned record of information, in paper or electronic form, that is capable of being reproduced in tangible form by the person to whom it is presented.” It also provides the authentication of electronic documents that can verify that the sender is the person by whom the document purports to have been sent and that the data have remained complete and unaltered during transmission.⁷