Understanding The New ICC Rules On Documentary Credits

Nederland
Understanding the new
ICC rules on documentary
credits, the UCP 600
A conference organised by ICC Netherlands in
cooperation with the Netherlands Bankers Association
Wednesday January 24, 09.00-17.00 hrs.
Kasteel "De Wittenburg", Landgoed de Wittenburg,
Wassenaar

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Introductie van de nieuwe ICC regels inzake
het documentair krediet, de UCP 600
Na drie jaar voorbereiding zal de UCP
600 op 1 juli 2007 in werking treden.
Het gaat om een herziening van de ICC
Uniforme Regelen en Usances voor Documentaire
Kredieten UCP 500.
Er zijn substantiële wijzigingen in de regels
met betrekking tot het documentair
krediet, zoals:
■ Minder artikelen (39 i.p.v. 49)
■ Nieuwe definities
■ Gewijzigde invulling van de term
"reasonable time" voor de bestudering
van documenten
■ Uitgebreidere beschrijving van "original
documents"
■ Gewijzigde praktijk voor "notice of
refusal"
■ Herziene transportartikelen.
De conferentie wordt voorgezeten door
Hennie van Diemen, Manager Documentary
Trade ING Bank, voorzitter van de
NVB werkgroep documentair betalingsverkeer
en lid van de ICC Banking
Commission.
Aparte aandacht is er voor ontwikkelingen
bij de documentatie voor zeetransport
door VN adviseur en internationaal
bekend transportexpert Gertjan van der
Ziel.
De conferentie wordt besloten met een
paneldiscussie inclusief vragen/antwoorden
met vertegenwoordigers van banken
en gebruikers van LC's van industrie en
transportsector.
Wij prijzen ons gelukkig dat Gary Collyer
(Gary Collyer Consulting LLP, Londen, tot
oktober 2006 Corporate Director ABN
AMRO, Londen), voorzitter van de ICC
werkgroep die de nieuwe regels opstelde,
naar Nederland zal komen om de
wijzigingen toe te lichten. Daarom is de
conferentie Engelstalig.
Indien daar behoefte aan is, bestaat wel
de mogelijkheid vragen in het Nederlands
te stellen.

Understanding the new ICC rules on
documentary credits, the UCP 600
The long awaited revision of the UCP
500, three years in preparation, will enter
into force July 1st 2007. The revision
contains major changes to rules which
govern letter of credit transactions. The
Uniform Customs and Practice for Documentary
Credits, 2007 revision, has substantial
new provisions as:
■ A leaner set of rules, with 39 articles,
rather than the present 49
■ New section of definitions, containing
terms such as "honour" and "negation"
■ Replacement of the term "reasonable
time" with a maximum number of days
for examining and determining compliance
of documents
■ Expanded description of "original do-
cuments"
■ Enhanced practice for notice of refusal
■ Re-drafted transport articles.
The conference will be chaired by Hennie
van Diemen, Manager Documentary
Trade, ING Bank, Chair of the NVB Working
Group on Documentary Payments,
and member of the ICC Banking Commission.
There will be special attention for global
developments in marine documentation
by UN advisor and international renowned
transport expert Gertjan van der
Ziel.
The conference will be concluded with a
panel discussion. Ample time will be
available for questions/answers with representants
from banks and users of
LC's from industry and transportsector.
We are happy that Gary Collyer (Gary
Collyer Consulting LLP, London, until
October 2006 Corporate Director ABN
AMRO, London), chair of Drafting Group
UCP 600, will visit The Netherlands to
clarify the new rules and changes.
For that reason the conference will be in
the English language.
Given the need, there will be an opportunity
to raise questions in Dutch.
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Program
08.30 – 09.00 Registration
09.00 – 09.10 Opening address
Kees van der Waaij, Chairman ICC Netherlands
Hennie van Diemen, Manager Documentary Trade, ING Bank
09.10 – 09.30 Reason for the Revision;
Framework and Overview of New Articles and Concepts
Why certain UCP 500 Articles have been omitted from the Revision
09.30 – 11.00 In depth review of the new UCP600 – Articles 1 – 13:
■ New articles on definitions and interpretations
■ The concept of "honour" upon determination of good tender
■ Structure and obligations under documentary credits
■ Availability of credit and place for presentation
■ Undertakings of the issuing and confirming banks
■ The role of a "second advising bank" in advising a credit
■ Problems of determining acceptance or refusal of amendments
11.00 – 11.20 Coffee Break
11.20 – 12.45 In depth review of the new UCP600 – Articles 14 – 27
■ Standard for examination of documents
■ Standards for refusing documents
■ Waiver and notice
■ Replacing "reasonable time" with maximum time limits
■ How to determine whether there are conflicts in data in a
document
12.45 – 13.45 Lunch
■ Transport documents, differences with UCP 500
■ Requirements for on board notations

13.45 – 15.00 In depth review of the new UCP600 – Articles 28 – 39
■ Insurance articles
■ New term "charterer" in the article on charter party bills of lading
■ Implications of the new provisions in the insurance articles
■ Transferable credits
■ Partial drawings or shipments
■ Force majeure and disclaimer
15.00 – 15.10 Remaining issues
What needs to be considered in implementing the new UCP
(training – online, seminars, inhouse etc., systems, budgeting)
15.10 – 15.30 Tea Break
15.30 – 16.00 Future Developments in maritime documentation,
Gertjan van der Ziel, adviser of UNCITRAL, former legal counsel
P&O Nedlloyd
16.00 – 16.55 Panel discussion with Q & A session, Members of the panel:
■ Industry: Petra Wehrens, Manager Export Document Services,
Royal DSM
■ Transportsector: Gertjan van der Ziel, adviser of UNCITRAL
and former legal counsel P&O Nedlloyd
■ Dutch bank: Joop van der Pot, Head International Trade Sevices,
Fortis Bank
■ Gary Collyer
16.55 – 17.00 Closing
17.00 – 18.00 Aperitive
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Information on speakers
Kees van der Waaij
Is chairman of ICC Netherlands since
2003 and presently chairman of Unilever
Netherlands Holding.
Hennie van Diemen
Started his career in 1978 at Hollandsche
Bank-Unie NV, Amsterdam, Documentary
Trade Department. In 1984 he joined
the Documentary Trade Department of
ING Bank (than known as NMB Bank).
With a break-out period of three years to
a commercial sales position within ING,
Hennie van Diemen still works in the
Trade Finance Area, now as Manager
Documentary Trade. Furthermore he is
serving the Industry by chairing the NVB
Working Group on Documentary Trade,
member of the ICC Banking Commission
and member of the Consulting group involved
to the revision of the UCP500.
Gary Collyer
Recently left his position as Corporate
Director Commercial Trade for the Transaction
Banking Group at ABN AMRO
Bank N.V. to concentrate on his own
consultancy company, Collyer Consulting
LLP, based in London. At ABN AM-
RO he was responsible for the development
of the trade service and trade finance
products including the implemen-
tation of solutions on a global basis. In
addition, he had global responsibility for
the development and delivery for traditional
trade services and finance solutions
(Letters of Credit, Collections, Guarantees).
Prior to joining ABN AMRO, he
was vice president and senior technical
adviser at Citibank N.A., London. He started
his banking career with Midland
Bank plc in London.
Since November 1996 Garry Collyer has
been the Technical Adviser to the International
Chamber of Commerce, where
he has been instrumental in providing
numerous opinions related to ICC rules.
In this role, he has been chair of the ICC
Working Group for the development of
the ISP98, and a member of the ICC
Working Groups for the development/revision
of URR525, URC522 and e-UCP.
Currently, he is chair of the Working
Group for the revision of the UCP500
and editor of six ICC opinion publications.
He is an editorial board member
of Documentary Credit Insight and Documentary
Credit World.
Petra Wehrens
Has fifteen year experience with export
documents within Royal DSM N.V., since
2001 as manager Export Document
Services, which is part of the Shared

Financial Services Centre of Royal DSM.
Worldwide she manages with her team
for 14 Business Units annualy 1000 Letters
of Credit and about 13000 open accounts
and collections.
Gertjan van der Ziel
Has been legal counsel to international
transportation companies (P&O Nedlloyd
and European Rail Shuttle). Until 2005
he was Professor of Transportation Law
at Erasmus University Rotterdam. Presently
he is chairman of Netherlands'
Maritime and Transportation Law Association,
arbitrator and mediator, and involved
in UNCITRAL's new Maritime
Transport Convention.
Joop van der Pot
Started his career in 1967 at ABN and
went in 1973 to Banque de Paris et des
Pays-Bas. He works with Fortis Bank
(Nederland) since 1978, and at present
leads the International Trade Services
Section. His section manages letters of
credit, incassi, disconti and bankguarantees.
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For whom?
The conference is intended for professionals
who work in daily practice with letters
of credit or managers who are responsible
within their companies for the
use of l/c's. Some basic knowledge of
documentary credit operations is expected.
Target groups are: bankers, managers
documentary trade and trade services,
managers of export document services,
traders, company managers and directors,
legal counsels, lawyers, account
managers of maritime operators, shippers
and forwarders.
Logistical Note
Contribution to costs (excluding VAT):
€ 270,- (members ICC Nederland)
€ 305,- (members Netherlands Bankers
Association, NVB)
€ 350,- (non members ICC Nederland)
The contribution to costs includes documentation,
inclusive the book with the
full text of the UCP 600, both in Dutch
and English, drinks, lunch and aperitive.
Please send the registration form before
januari 10, 2007 This form can be downloaded
from our website (www.icc.nl,
agenda). On request (info@icc.nl), we
will mail this form.
After receipt of the registration form we
will send you an invoice. Participation is
only possible if all financial obligations
have been met.
Capacity is restricted. Registration will be
on day of receipt of registration form.
For further information on ICC Netherlands,
including our full list of publications:
www.icc.nl