Notable Chinese Supreme People's Court Cases Involving Application of ISBP

Treatment of the current International Standard Banking Practices (ISBP) and its past versions in the Chinese courts is an area of high interest within the letter of credit industry.[[1]] This article[[2]] will attempt to provide a brief review of two significant cases from the Supreme People’s Court in China.[[3]]

Macsteel International USA Corp. v. Chinese-Polish Joint Stock Shipping Co.

In a ruling[[4]] to dismiss the application for retrial issued by the Supreme People's Court, the Supreme People's Court held that both the sales contract for the goods and the payment terms under the letter of credit clearly required the seller to provide clean bills of lading. According to UCP600 Article 27[[5]] and ISBP745 Paragraph E20,[[6]] if the actual packaging condition is accurately annotated on the bill of lading, all three original bills of lading in this case are considered unclean bills of lading.