The ICC Banking Commission has released electronic supplements to the existing Uniform Rules for Collections (URC 522) and Uniform Customs and Practice for Documentary Credits (UCP 600) rules.
The new eRules, which came into effect on 1 July, will provide rules for banks operating in today’s increasingly digital trade finance system. In June 2017, ICC formed the “Digitalisation in Trade Finance” Working Group to evaluate challenges faced by banks as trade finance progresses toward a paperless future. The Working Group examined the applicability of ICC banking rules and considered the development of minimum standards for the digital connectivity of service providers. The Working Group also conducted a legal survey to determine the legal liability of electronic documents and to understand the rights of third parties using paper and electronic documents. As ICC rules underpin over USD 1 tln of transactions each year, adapting rules to the digital era will enable banks to capitalise on new technologies.
After an initial consultation and review process, ICC’s Banking Commission instructed the Working Group to update the existing eUCP version 1.1 and create a eURC for collections to ensure that ICC’s most used banking rules are digitally compatible. The revised eUCP and eURC establish rules for electronic records associated with existing trade finance products.
The eRules will be continually monitored and updated to reflect future technological developments and trends that emerge in trade finance. By embracing a paperless future, this safeguards the applicability of traditional trade solutions in a digital environment. ICC will ensure that the eRules remain relevant and applicable to banks and other trade finance institutions.
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