ICC Issues TAB on Force Majeure under UCP

The matter of force majeure was addressed in the first version of UCP[[1]] in 1933 and largely resembles the wording contained in the current UCP600 Article 36. Then and now, whether a particular event which interrupts a bank’s business constitutes force majeure and triggers enforceability of the Article depends on applicable local law and the willingness of courts to give effect to its provisions.

Recognizing that questions frequently arise as to the extent to which banks using UCP remain liable due to such interruptions, the ICC Banking Commission issued Technical Advisory Briefing No. 15 – “Force Majeure under documentary credits subject to UCP 600” on 27 July 2026.

UCP600 Article 36 (Force Majeure):

A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control.

A bank will not, upon resumption of its business, honour or negotiate under a credit that expired during such interruption of its business.

The 5-page Briefing addresses who is protected by UCP600 Article 36 and when. It emphasizes that Article 36 is solely concerned with interruption of a bank’s business by causes beyond its control as relates to the LC, not the underlying transaction.  

During an interruption of a bank’s business, Article 36 suspends its obligations and does not invalidate a presentation already made such that the bank’s duties resume when it resumes business, subject to the protections in Article 36.

The Article does not suspend or extend the presentation period where the business of others but not the bank’s has been interrupted. That is, if documents are presented after the presentation period due to events impacting the beneficiary or the movement of documents, but the bank’s business has not been interrupted, Article 36 provides no relief. From the standpoint of others, beneficiaries may be vulnerable to payment delay or non-payment and applicants could encounter difficulties ensuring contractual obligations are satisfied.    

That the Article applies exclusively when a bank experiences interruption of its own business arising from causes beyond its control, occurrences such as transport disruption, reduced operational capacity, or wider market difficulties that surface while banks remain open for business do not qualify as force majeure events under Article 36. In this vein, the Briefing highlights the distinction between “disruption affecting document transit or commercial activity, and genuine interruption of a bank’s own business operations.”

For UCP purposes, banks are advised they must carefully assess whether a particular interruption has genuinely prevented performance or whether alternative solutions are available. In this regard, parties should consider the LC’s terms to ascertain if presentation is possible through another bank or via electronic means.

For LCs subject to the eUCP supplement, eUCP Article e14 (Force Majeure) expressly addresses interruption of a bank’s business arising from inability to access data processing systems, or failures of equipment, software or communications networks beyond its control. The Briefing draws attention to the fact that eUCP article e14 does not replicate UCP600 Article 36 second paragraph provisions concerning LCs expiring during interruption of business. Consequently, banks should consider the legal and operational impact of that distinction.

Ultimately, whether a particular interruption constitutes a force majeure event and unlocks the Article 36 provisions cannot be answered by UCP and will be determined by applicable local law and the courts.

TAB-15 and all other technical advisory briefings are freely available at the ICC Digital Library.

For a fuller treatment of the issues TAB-15 raises, IIBLP's dedicated study UCP600 Article 36: Force Majeure examines the provision's history, scope, and application in depth. Included with DCW membership.

[[1]]: UCP82 (1933) Article 13 — Banks assume no liability or responsibility for consequences arising out of the interruption of their business either by a decision of a public authority, or by strikes, lockouts, riots, wars, acts of God or other causes beyond their control. On credits expiring during such interruption of business, Banks will be able to make no settlement after expiration, except on specific instructions from their principal