Documentary credits are subject to a set of international rules entitled Uniform Customs and Practice for Documentary Credits (UCP), ICC Publication No. 600.
The rules are set forth by the International Chamber of Commerce (ICC) in Paris and are used worldwide. They consist of a large number of articles covering everything from the banks' obligations to general requirements for documents.
ISBP
Publication No. 645, whose full name is International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP), is a supplement to the Uniform Customs and Practice for Documentary Credits. The first version of the publication was approved by the ICC in 2002.
The purpose of the ISBP is to standardise practices worldwide and to provide the guidance necessary to help reduce the large percentage of documents rejected for discrepancies.
With the approval of UCP 600, it became necessary to adjust the ISBP accordingly. The result is Publication No. 681, which is now available. This is an updated rather than a revised version. The changes made have brought the publication in line with UCP 600.
ISP98
Standby letters of credit are usually subject to the same rules as commercial documentary credits, that is, UCP 600. But please note that a growing number of standby documentary credits are subject to a newer set of rules, known as ISP98, which deals solely with this type of documentary credit.
If your standby documentary credit is subject to ISP98, this must be shown in the documentary credit.