Uniform Customs and Practice for Documentary Credits (UCP 600)

The Uniform Customs and Practice for Documentary Credits (UCP 600) are internationally accepted rules published by the International Chamber of Commerce that guide banks in handling letters of credit used in international trade. These rules ensure clarity and uniformity in how documents are processed, reducing risk for buyers and sellers. Essentially, UCP 600 provides the legal framework for banks to verify documents such as invoices and shipping papers, confirming that the buyer has met contractual terms before releasing funds, facilitating smoother and safer global commerce.