Learn more about URDG 758
Both the ICC Banking Commission and the Commercial Law and Practice Commission have overwhelmingly
approved the Uniform Rules for Demand Guarantees from its current Revision URDG 458 to its new Revision 758 (URDG 758). The new rules will enter into effect on July 1, 2010. Are you ready?
Learn more by clicking the Tab:
"Purchase - A Drafter's Notes to URDG 758".
The UN and the US are demanding more regulations and full shipment disclose in advance of transport occurring. In
Jan., 2010, the US implemented the Import Security filing program. The European Union has the Authorized Economic
Operator (ACO) program. Authorised Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors”. The fight on terrorism will translate to added steps and costs for everyone involved in international
This site is dedicated to providing technical knowledge, training, education and solutions to
anyone involved in Letters of Credit and/or Demand Guarantee transactions. It is maintained by a trade professional with extensive
trade finance knowledge. By unraveling the puzzles and misconceptions associated
with these instruments, trade can improve and expand for the benefit of everyone globally.
Note: Although I refer
to applicable laws and legal concepts and/or actual legal cases, I am not a legal professional. The information
in this site should not be construed as legal advice. Persons seeking legal advice should consult their
own legal professional.
In Shakespeare’s, The Merchant
of Venice, Antonio provides Bassanio with a Letter of Credit. This piece was
purportedly written in the late 1500’s but Letters of Credit were by then already an established means of facilitating
business. They continue to play an important role in the global economy and the U.S. marketplace. The majority of Letters of Credit (“LCs”) and
Demand Guarantees (collectively hereinafter referred to as “instruments”) issued worldwide are “documentary”
and “irrevocable” commitments of the issuer and so this site is dedicated to this type of instrument.
It is possible to induce an issuer to establish a “revocable” instrument but globally this is very uncommon.
Additionally, while this site does provide an overview for non-demand types of Guarantees, these types of instruments
are generally subject to local customs and laws and, as such, this site does not provide an in depth analysis of these contracts.
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