UCP 600 (Uniform Customs and Practice for Documentary Credits)

UCP 600 is an internationally recognized set of rules that govern the use of documentary credits (commonly called letters of credit) in international trade. It provides a standard framework ensuring that banks, exporters, and importers understand their rights and obligations when facilitating payment and shipment of goods across borders. The rules specify procedures and conditions for documents to be accepted, ensuring smooth, predictable transactions while reducing risks for all parties involved. Essentially, UCP 600 helps make international trade more secure and efficient by standardizing practices related to documentary credits.