ICC ISBP 645

ISBP was approved by the ICC Banking Commission in October 2002 and published in January 2003.  

Nearly two years on, the response from the banking community remains mixed, and there remains some doubt as to how best to respond to it.

What is ISBP?

The full title of ISBP is "International Standard Banking Practice for the examination of documents under letters of credit", ICC Publication No 645.

This is available from various ICC bookshops and national websites at a price of around EUR 20
or US $25

       http://www.iccbooks.com/

Published in January 2003, ISBP is the culmination of a project by the ICC Banking Commission to reduce documentary discrepancies by defining correct document examination practice more precisely than hitherto through a set of detailed recommendations.

Or to put it more colloquially - to "put meat on the bones" of UCP 500"

It is well-known that banks vary considerably in their document examination practices. This gives rise to numerous unnecessary rejections of documents, and also encourages the habit of "defensive" document examination - negotiating Bank A would itself have no problem with a presentation, but it may wish to protect itself in case issuing Bank B thinks differently.

The ICC is clear that ISBP is a supplement to UCP 500, not a replacement for it, and we shall be returning the matter of its exact status in later sections. However it carries the force of official ICC policy, and so can be cited in disputes.