INTERNATIONAL STANDARD BANKING PRACTICE (ISBP)

Long awaited by letter of credit users, the ISBP contains some 200 paragraphs setting forth the
steps document checkers should take when reviewing presented documents.

Highlights

• Background, Purpose and Objectives of ISBP
• Introduction and Preliminary Considerations
• General Principles
• Specific Requirements of the Stipulated Documents

Some of the questions answered in the workshop:
Are you 100% sure you have the right answers?

• Do drafts, certificates and declarations - if not stated in the credit - require a signature?
• Under what conditions can drafts drawn on the applicant be issued?
  
• What effect do on board notations have if they contain the words "shipped in apparent good order",
  "laden on board" and "clean on board"?
• What will be deemed to be the date of dispatch on a multi modal transport document?
  
• Does an air transport document have to indicate that the goods have been accepted for carriage?
  
• What constitutes an “alteration” or “addition” to a document, when and how should these
  be authenticated?
  
• How should documents be signed, if this is not explicitly stated in the credit?
  
• How should one handle typing errors on documents regarding the name and address, different
  addresses of same company, etc.?
• Must trade terms, such as Incoterms, appear on the invoice?
• What is the “face” of a transport document and should a practitioner examine the reverse side to
  determine the name of carrier, description of the journey, etc.?
• What is a full set of insurance documents, a copy vs. an original, endorsements, and the effective date?
  
• If the LC is silent, does a certificate require a date and/or a signature?
  
• If the LC requires a document issued by Company A and an authorized signatory of Company A signs on Company B letterhead. Is this acceptable?
  
• Can a bank reduce the number of acceptable languages in its advice and confirmation of the LC?
  
• What three kinds of documents must bear an issuing date even if the LC and the UCP 600 are both silent?
  
• "Within 2 days of (an event)" means 2 days before, or 2 days after that event or both?
  
• If the LC requires a packing list and a weight list, is presentation of a combined packing/weight list acceptable?
  
• Under what conditions is a typographical error not deemed to be a discrepancy?
  
• Can documents show goods not mentioned in the LC, but all supplied free of charge, such as advertising materials, spare parts and other sales supports?
  
• Must all bills of lading be marked "originals"?
  
• Can an endorsement in a BL be made by an agent of the shipper?
  
• Is a BL stating "packaging may not be sufficient for the sea voyage" acceptable?
  
• If LC requires "insurance for 110%", should "sum insured" be exactly 110% CIF value or it only represents a minimum amount?