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ICC Paris ( 7 April 2020 ) Guidelines on the current crisis

With specific reference to Letter of credit, Collection and Bank guarantees

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Relevant ICC Rules- UCP 600/URDG 758/ISP 98/URC 522/eUCP 2.0 version)

30 May 2020

2:00 pm- 5:00 pm

Due to the current crisis most of the cross border trade transactions are struck at various stages.  Some of the transactions are covered under letters of credit. And some through bank collection process.

There are cases where:

  • Exporter could not ship the goods due to ‘lock down’ and expiry date of the LC is fast approaching.  Can this lock down be treated as ‘force majeure’?
  • Goods are shipped and documents are with the exporter.  Could not present the documents due to ‘lock down’.
  • Documents were presented to the bank (negotiating / confirming bank).  Documents are processed.  But bank could not forward the documents to issuing bank because courier service is not available.
  • Negotiating/confirming bank has forwarded the documents to issuing bank through courier.  Courier service could not deliver the documents to the issuing bank due to ‘lock down’.
  • Consignment had already reached the port of destination.  Original bill of lading is in transit. Either with the shipper or with the negotiating bank or with the courier.  How to release the goods by the buyer to avoid demurrage and other charges?  Will the carrier be prepared to release the goods without surrendering original bill of lading?

These are some of the challenges faced by the exporters and importers globally.  Some transactions are covered under letter of credit and others are on collection basis.

International Chamber of Commerce (ICC) Paris has issued guidelines to manage such situations on April 7, 2020.  These guidelines are explaining in detail about the current global scenario and explain the back ground of ‘force majeure’.  Whether this situation can be classified under ‘force majeure’? How banks can handle such situations?  How to handle letter of credit, collection transactions and bank guarantees?

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This workshop will discuss in detail the latest guidelines issued by ICC Paris.

Topics covered:

  • Brief overview of impact of ‘lock down’ on cross border trade.
  • Whether this ‘lock down’ can be covered under ‘force majeure’ clause
  • Different stages of disruption in trade transaction
  • ICC Paris guidelines on these situations
  • Role of shipping companies / carrier in releasing goods without original bill of lading
  • How to take care of the existing and future transactions?

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  • Fees: Rs. 3,000/- + 18% GST Per Person 
  • Please write to register@princetonacademy co in 
  • Call or WhatsApp on 9769963790/ 9769579090
  • Mention the name of participant, company, contact details.