Latest TAB Sheds Light on UCP600 Article 14(d) “read in context with”

In an attempt ensure global understanding of the wording “read in context with” as used in UCP600 Article 14(d), the ICC Banking Commission has issued its 12^th Technical Advisory Briefing (TAB).

TAB No. 12, “Interpreting and applying the phrase “read in context with” in respect of UCP 600 sub-article 14(d)”, was released 13 November 2024.

see also: ICC Banking Commission Meeting Executive Summary

Critical to the document examination process, UCP600 Article 14(d) directs that the phrase “read in context with” be applied to four areas when examining data in a presented document: the credit as issued and/or amended; the document presented for examination; the governing UCP rules; and international standard banking practice. This sub-article further provides that the data “need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.”

UCP600 Article 14(d) must be read in conjunction with UCP600 Article 14(a). Together, these sub-articles establish three key principles. As outlined in TAB-12, they are:

• that a presentation must be examined solely on the basis of the documents stipulated in the credit, in order to determine if the documents appear on their face to constitute a complying presentation;
• that compliance is based upon the terms and conditions of the credit, the UCP 600 rules, and international standard banking practice;
• that documents appearing to contain conflicting data do not constitute a complying presentation.

In its Analysis, TAB-12 first reviews the relevant portion of the 2007 transition of the UCP rules. It was believed that the UCP600 concepts of “not conflict with” and “read in context with” would be clearer than the inconsistency rule of UCP500 Sub-Article 13(a) by providing a tighter and more definite rule. UCP600 retained the need to review data in a document as against data in any other stipulated document, but re-formulated this principle in UCP600 Article 14(d).

As regards “international standard banking practice”, TAB-12 reinforced that “isbp” goes beyond what is encompassed in the latest version of the published ISBP.

In explaining the phrase “read in context with”, the Briefing emphasizes that the phrase is not to be understood narrowly and in isolation, but broadly across the spectrum of what is being examined. TAB-12 states: “This phrase means that the data within a document should not be interpreted in isolation but rather should be understood in conjunction with other relevant data.” The Briefing goes on to say “an understanding of the individual document’s role, how it fulfils its function, and relevance within the entire set of presented documents is crucial.” Importantly, TAB-12 suggests that this approach, when properly followed, cuts down on unnecessary discrepancies and “promotes a holistic understanding, ensuring that the documents collectively meet the commercial intent of the credit and adhere to the principles set out in UCP 600.”

TAB-12 goes on to give examples of the principle, “need not be identical to, but must not conflict with”, including those contained in ISBP 821 Paragraph N5 and Paragraph Q9. 

In its concluding summary, TAB-12 underscored that “read in context with”, as used in UCP 600 sub-article 14(d), “means that the requirements of the documentary credit, the structure and purpose of the document itself, UCP 600, and international standard banking practice need to be assessed, understood and be taken into consideration in determining compliance of a document.”

TAB-12 and previously issued technical advisory briefings are freely available at the ICC Digital Library.