UCP Latest Version - UCP 600

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Almost all of the letter of credit texts having a phrase Under field "40E: Applicable Rules" telling us that credit subject to "UCP LATEST VERSION". 
What does UCP mean? and What is the latest version of UCP?
On this page we will have look at this statement and I will be answering the questions such as "What does UCP mean?" and "What is the latest version of UCP?".

What does UCP means?

UCP is the short form of Uniform Customs and Practice for Documentary Credits. UCP is the set of international rules that govern the letter of credit transactions throughout the world. It would be necessary to state that some practicers mistakenly use UCPDC abbreviation instead of UCP. Correct usage should be UCP for the Uniform Customs and Practice for Documentary Credits not UCPDC.

What is the latest version of UCP?

Uniform Customs and Practice for Documentary Credits have been established long ago. First  international letter of credit rules published nearly 80 years ago in year 1933. Since then letter of credit rules have been revised regularly by ICC ( International Chamber of Commerce). Let us have a look at the UCP history below,

  • 1933 – Uniform Customs and Practice for Commercial Documentary Credits
  • 1951 Revision - Uniform Customs and Practice for Commercial Documentary Credits
  • 1962 Revision - Uniform Customs and Practice for Documentary Credits
  • 1974 Revision – Uniform Customs and Practice for Documentary Credits 
  • 1983 Revision – Uniform Customs and Practice for Documentary Credits  (UCP 400)
  • 1993 Revision – Uniform Customs and Practice for Documentary Credits  (UCP 500)
  • 2007 Revision – Uniform Customs and Practice for Documentary Credits (UCP 600)

As indicated above 2007 Revision of the letter of credit rules are the latest version of the Uniform Customs and Practice for Documentary Credits. Banks that do not want to create any disambiguaty on their credit texts should always mention that letters of credit that they have issued is subject to "UCP LATEST VERSION". If they would have not act on this way by not giving express reference to the exact version of letter of credit rules, than one of the letter of credit party may indicate that they would like to use other version of Uniform Customs and Practice for Documentary Credits when fulfilling their obligations.

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