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Grand Old Man of LC World
Old LC World is
dedicated to those LC specialists who are now relaxing in the backyard after
being in the forefront for contributing their knowledge and works to LC
world. One such specialist is Charles del Busto. He was
Chairman, ICC Commission on Banking
Technique and Practice.
His great gift to LC world is Guide to
Documentary Credit Operations, which the LC world uses for understanding and
undertaking LC operations to help the trade world in conduct of LC-based
trade.
Charles del Busto
facilitated understanding the complexities of LC rules and operations for
facilitating use of LC for facilitation of trade for acceleration of
economic development
in 1995 Charles Del
Busto said to DCI (Volume 1 no 1 winter 1995) in an interview:
On
negotiation:
"...you must do
something more than examine documents. You must buy those documents, you
must purchase those documents, you must give value for those documents, you
must become holder in due course..."
In the March 2006
draft the definition of negotiation says: "negotiation means the purchase
...."
On the
electronic LC:
"And hopefully,
if there are no major obstacles, I could see that ICC, in the next five or
seven years, may have the opportunity to have a set of rule governing the
electronic credit ."
The interview was
made in 1995 and the eUCP was in force 2002 - 7 years later.
On the
obstacles for the electronic LC:
"Also, in 1989
there we re a number of issues related to EDI that had not been answered
legal issues, standards, international standards. How do you endorse a draft?
How do you endorse a bill of lading? [ How is the] negotiability of a
document effected electronically? Is an EDI message acceptable under the
laws of the various countries? [And there are] security issues. If there is
a possibility of computer hackers tapping into sensitive government agencies
databases, what is the possibility of hackers tapping into a database
controlled by a bank or a banking association? What about the security of
the data? "
Seems that these
are excatly the same obstacles that exist today.
On the UCP
Revisions:
"Why is there a
need to revise all of the Articles? Because when you are going to do a
revision everyone looks at all the Articles and tries to re - author them.
Why revise or rewrite all the Articles, when the issues of contention may
only concern a number of Articles ? Why wait ten years to do a revision
process when circumstances in the marketplace may change dramatically,
whether they happen to be legal interpretations, legal decisions,
technological innovations or changes in the various industries that are
party to the documentary credit?. Why not just [amend the necessary Articles]
in two years or three years as the need may arise?"
Indeed something to
think about if you have followed the ongoing Revision proces :-)
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