ISBP 745 is a publication of the International Chamber of Commerce (ICC) that provides guidance on the examination of documents presented under letters of credit. It is not a mandatory document, but it is widely accepted and used by banks and other trade finance professionals around the world.
The purpose of ISBP 745 is to help banks ensure that they are examining documents in a consistent and objective manner. It provides detailed guidance on a wide range of documentary requirements, including:
- The format and content of documents
- The use of abbreviations and symbols
- The sequence of documents
- The interpretation of terms and conditions
ISBP 745 also includes a number of appendices that provide further guidance on specific topics, such as:
- Bills of lading
- Insurance documents
- Certificates of origin
MCQs on ISBP 745
- Question 1: Under ISBP 745, a transport document must be dated on or before the date of shipment.
- Answer: False. A transport document does not need to be dated on or before the date of shipment. However, if the letter of credit requires the transport document to be dated on or before a certain date, then the bank must ensure that the document is dated accordingly.
- Question 2: Under ISBP 745, a bill of lading must be issued by the carrier or its agent.
- Answer: False. A bill of lading can be issued by any person who is in control of the goods at the time of shipment. This could be the carrier, the freight forwarder, or even the exporter.
- Question 3: Under ISBP 745, a certificate of origin must be issued by a chamber of commerce.
- Answer: False. A certificate of origin can be issued by any person or organization that is authorized to do so. This could be a chamber of commerce, a government agency, or even a private company.
Conclusion
ISBP 745 is an important resource for banks and other trade finance professionals. It provides detailed guidance on the examination of documents under letters of credit, helping to ensure that banks are consistent and objective in their approach. If you are involved in trade finance, it is important to be familiar with ISBP 745.