New ICC Interpretative Paper on the correct interpretation of the first paragraph of UCP 600 article 35
Following the release of the “Guidance paper on the impact of COVID-19 on trade finance transactions subject to ICC rules” some doubts have been raised from a legal perspective on the correct application and interpretation of UCP 600 article 35 in the guidance paper.
For that reason, the ICC have now published an “Interpretative Paper on the correct interpretation of the first paragraph of UCP 600 article 35”.
In that document the ICC Banking Commission confirms that, in its true interpretation, article 35 of UCP 600 should be read also to apply to the case where the nominated bank or the confirming bank is not able to transmit or to send letters or documents in paper form in accordance with the requirements stated in the LC.
For the reasoning, please refer to the actual document – which can be found here:
The original “Guidance paper on the impact of COVID-19 on trade finance transactions subject to ICC rules” is still available here:
Last, my personal evaluation of the interpretation of UCP 600 article 35 is available here:
http://www.lcviews.com/index.php?page_id=791
(lcviews CoronAdvice #9: The article 35 controversy).
As so, that “goat is shaved” as we say in Danish J
Have a great weekend, and as always, do take care of the LC – but take special care of each other during these difficult times.
Kind regards
Kim