ISBP 745: Examining Documents Under UCP 600
UCP 600 says documents must comply. ISBP says what compliance looks like on the page.
UCP 600 tells a bank to examine documents on their face and decide whether they comply. It does not say whether a misspelt word, an abbreviation or a rubber-stamp signature breaks compliance. ISBP, International Standard Banking Practice, fills that gap with paragraph-level guidance on how examiners actually read documents.
ISBP is not a separate rule set that a credit has to incorporate. It records the standard international banking practice that UCP 600 Article 2 builds into the definition of a complying presentation, so it applies to every UCP 600 credit.
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ISBP 745 or ISBP 821?
The CCFE syllabus names ISBP 745, published in April 2013. ICC replaced it with ISBP 821 in July 2023, an update that folds in the ICC Banking Commission opinions issued after 2013. The lettered structure and the core principles carried over, so what you learn for 745 still holds. Answer exam questions in the syllabus's terms; at the counter, work to 821.
How ISBP Is Organised
Lettered sections, one per document family, after a block of general principles.
| Section | Covers |
|---|---|
| Preliminary considerations | Application, the credit and amendments, and the applicant's responsibility for clear instructions |
| A | General principles that apply to every document |
| B | Drafts and calculation of maturity date |
| C | Invoices |
| D | Transport documents covering at least two modes (multimodal) |
| E onwards | Bills of lading and the other transport documents, insurance, certificates of origin and similar documents |
General Principles the Exam Samples
- Misspellings and typing errors (A23)
- Do not make a document discrepant if they do not affect the meaning of the word or the sentence. "Mashine" for "machine" passes; "model 321" shown as "model 123" does not, because it names a different product.
- Abbreviations (A1)
- Generally accepted abbreviations may be used in place of a word, and the full word in place of the abbreviation.
- Non-documentary conditions (A26)
- A condition in the credit with no document to evidence it need not be shown on any document, but data in the stipulated documents must not conflict with it.
- Originals (A27)
- A document bearing an apparently original signature, mark, stamp or label of the issuer is treated as an original unless it states it is a copy.
- Signatures (A35)
- Need not be handwritten. Facsimile, perforated, stamped, symbol or any mechanical or electronic method of authentication is acceptable.
- Language (A21)
- If the credit is silent on language, documents may be issued in any language.
- Data consistency
- Data in documents need not be identical to the credit or to each other, but must not conflict (the UCP 600 Article 14(d) test that ISBP applies throughout).
Is it a discrepancy? Scenario questions. No signup.
A Few Document-Specific Points
- check_circleAn invoice must not show goods, services or performance not called for in the credit (C13).
- check_circleOn a pre-printed "shipped on board" bill of lading, the issue date is the date of shipment unless the bill carries a separate dated on board notation (E6).
- check_circleGoods may be described in general terms in documents other than the invoice, provided the description does not conflict with the credit (UCP 600 Article 14(e)).
How CCFE Tests This
- check_circleScenario MCQs: a small error in a document, four options on whether it is a discrepancy. The test is always "does it change the meaning or create a conflict?", not "is it identical?"
- check_circleEdition questions: "ISBP 745 was published by ICC in..." or "ISBP stands for...". Know the publication number and year.
- check_circleSignature questions: candidates often assume a handwritten signature is required. It is not.
- check_circleThe trap pairing: ISBP is guidance on UCP 600 practice, not a substitute for it. An option saying ISBP overrides UCP 600 is wrong.
FAQs
What is ISBP 745?expand_more
ICC's International Standard Banking Practice for the Examination of Documents under UCP 600, published in 2013. It sets out how banks read documents presented under a letter of credit.
Has ISBP 745 been replaced?expand_more
Yes. ICC published ISBP 821 in July 2023, aligning the guidance with ICC opinions issued since 2013. The CCFE syllabus still names ISBP 745.
Is a spelling mistake in an LC document a discrepancy?expand_more
Not if it leaves the meaning of the word and the sentence unaffected. A typo that changes meaning, such as a different model number, is a discrepancy.
Does ISBP have to be mentioned in the letter of credit?expand_more
No. It reflects the standard banking practice that UCP 600 already relies on, so it applies to a UCP 600 credit without separate incorporation.
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