ICC Resumes Digitization Process for URC, Update to eUCP
On 3 January 2018, the ICC Banking Commission Executive Committee announced that it would proceed with updating the existing eUCP rules (eUCP Version 1.1, 2007) and drafting new rules addressing electronic presentation for collections (eURC). This is the latest news on this topic which we have previously covered here and here.
Beginning in 2017, the draft effort stalled at the ICC Banking Commission Meeting in London after National Committee members expressed concerns. In the interim, the ICC's Digitisation Working Group formally requested a mandate from the Executive Committee, which has since approved the project.
Rationale for eUCP Update
In granting its approval, the ICC Banking Commission Executive Committee released a three-page document outlining its “Rationale for ICC Rules e-compliance”. The document lists a number of areas requiring increased focus and a number of ‘knowledge gaps’ in the eUCP Version 1.1 wording. The Executive Committee statement added that “most, if not all, of these issues are addressed in the ‘ICC Guide to the eUCP, ICC Publication No. 639’.” Written in 2002 by Professor James E. Byrne & Dan Taylor, the eUCP Guide remains the authoritative users guide to the electronic UCP, and will likely continue to be of some utility upon release of the forthcoming update.
Rationale for Digital URC
Noting a lack of rules governing treatment of digital data for collections, the Executive Committee stated in its report that “it is deemed important that the ICC develop specific rules covering the presentation of electronic records under collections.” ICC National Committees have until 28 February 2018 to submit written feedback on the previously distributed eUCP and eURC drafts. We'll likely know more by the beginning of March when to expect the new sets of rules, and hopefully get a better glimpse into their substance.
We've previously covered the beginnings of the initiative and its subsequent delay. For complete coverage on this story as well as the most up-to-date trade finance, LC, and Guarantee news, subscribe to Documentary Credit World.