URR 725

Wef 1st October 2008. Updating URR 525. ICC Publication. 17 articles. Applicable to Bank to Bank Reimbursement under Documentary Credit.

URR 525 vs URR 725

URR 522 first published in 1995. Update necessary to bring the long standing rules in conformity with UCP 600 effective from 1st Jul07. URR 725 contains a number of technical changes from the previous version.

Categories of Articles

A. General Provisions and Amendments. B. Liabilities and Responsibilities. C. Form and Notifications of Authorizations, Amendments and Claims. D. Miscellaneous Provisions.

General Provisions and Amendments

Article 1: Application of URR:

a) Applicable when text of the Reimbursement authorization expressly indicates that it is subject to these rules. b) Binding on all parties thereto unless expressly modified.

Article 2: Definitions: Issuing Bank (IB), Reimbursing Bank (RB), Reimbursement Authorization, Reimbursement Amendment, Claiming Bank, Reimbursement Claim, Reimbursement Undertaking, Reimbursement Undertaking amendment.

Article 3: Reimbursement Authorization vs Credits. Reimbursement Authorization is separate from the credit to which it refers.

Liabilities and Responsibilities

Article 4: Honour of a Reimbursement Claim. Reimbursing Bank is not obligated to honour a reimbursement claim.

Article 5: Responsibility of Issuing Bank a) IB responsible for providing all information required in these rules in credit and Reimbursement Authorization. b) responsible for all consequences from non compliance

Form and Notification of Authorizations, Amendments and Claims

Article 6: Issuance and Receipt of a Reimbursement Authorization or Reimbursement Amendment. - Reimbursement Authorization or Reimbursement Amendment must be in the form of an authenticated teletransmission or a signed letter. - IB need not send a copy of credit or any part thereof, or amendment to RB. - IB should not send multiple reimbursement authorization under 1 teletransmission. - Reimbursement authorization should state credit no, currency and amount, add amt payable and tolerance if any, claiming bank, parties responsible for charges. Article 7: Expiry of a Reimbursement Authorization. - should not be subject to an expiry date or latest date for presentation of a claim.

Form and Notification of Authorizations, Amendments and Claims

Article 8: Amendment or cancellation of Reimbursement Authorization. -at any time by sending notice to that effect to reimbursing bank. - must reimburse the reimbursing bank for any reimbursement claims honoured or draft accepted prior to the receipt of notice of cancellation. Article 9: Reimbursement Undertaking. - an authorization or request by the issuing bank to reimbursing bank to issue a reimbursement undertaking is irrevocable. - must contain credit number, amount, currency, additional amount payable if any, parties responsible for charges, tenor of draft, drawer, party responsible for acceptance and discount charges if any. - RB if not ready for issue of reimbursement undertaking must inform the IB without delay. - RU must sate.. - If last day of claims falls on a holiday, extended to following banking day. -

Form and Notification of Authorizations, Amendments and Claims

Article 10: Standards for a Reimbursement Claim. - must be in the form of a teletransmission, or an original letter. - must clearly indicate credit no, and the issuing bank, amount and additional amount due and charges.

Article 11: Processing of a Reimbursement Claim. - RB shall have a maximum of 3 banking days following the day of receipt of claim. - RB will not process request for back value from claiming bank. - Reimbursement claim not to be presented prior to 10 banking days from the determined date. - RB assumes no liability if it honours a claim indicating payment, acceptance or negoatiation under reserve. Article 12: Duplications of a reimbursement Authorization. - to be avoided by IB.

Miscellaneous Provisions

Article 13: Foreign Laws and Usages. - IB bound by and liable to indemnify the RB. Article 14: Disclaimer on the Transmission of Images. - RB not liable for loss becoz of delay in transmission, mutilation lossin transit

Article 15: Force Majeure. - RB not responsible

Miscellaneous Provisions

Article 16: Charges - RB charges for the account of IB. - RB should follow instructions of IB regarding charges when honouring a reimbursement claim. Article 17: Interest claims/ Loss of value. - Any claim for loss of interest, loss of value are between IB and CB unless resulted from non performance of RB.