ICC Draft Opinions Released for January 2023 Discussion

Three Draft Opinions will be addressed at the next session of ICC Banking Commission’s quarterly discussion of Opinions on 24 January 2023. The Draft Opinions were released in November 2022 to ICC National Committees for review and comment by 10 Jan.

Draft Opinion TA927 involves a query submitted by ICC China in which a nominated bank challenged an issuing bank’s deduction of a USD 100 fee for a discrepancy that the presented invoice evidenced free of charge goods which was not allowed as per the LC issued subject to UCP600. The query asked if the discrepancy is valid and also if the wording of ISBP745 Paragraph C12(b) should be interpreted as “it means to prohibit an invoice indicating goods stated to be free of charge under any circumstances unless allowed by the L/C”.

Draft Opinion TA928 deals with a query from ICC Denmark about an insurance policy presented under a UCP600 LC that “does not appear to have been issued and signed by an insurance company, an underwriter or their agent or proxy”.

Draft Opinion TA929 involves a query sent by ICC United Kingdom regarding a back-to-back LC in which the first LC was issued subject to eUCP and the second LC was issued subject to UCP600 alone. As regards presentation under the LC subject to UCP600, the query asked if image signatures can be used to endorse a paper bill of lading pursuant to UCP600 Article 3 (Interpretations) wording that: “A document may be signed by handwriting, facsimile signature, perforated signature, stamp, symbol or any other mechanical or electronic method of authentication.”