Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance International and Trade - II - Question Paper

The current 1993 version of UCPDC document number 500 is effective from 1.1.1994. Its revision work has already been undertaken and the revised version viz.: UCPDC 600 is expected to be released in autumn 2006 and will be effective from early or mid-2007. To begin with, UCPDC 600 1st and 2nd version (v.l and v.2) for only the 1st 19 articles of UCPDC 500 were established, commented and redrafted further to many contributions of National Committees of ICC and many others.

In December 2003, the ICC Banking Commission met in India for the 1st time with the revision of LC's rules on documentary credits giving top priority as the agenda item. "It is more important that we take the commission on the road so that those who use ICC banking rules, such as those on documentary credits and collections, can have an opportunity to participate in commission debates.", stated Dieter Kiefer, Banking Commission Chairman.

The New Delhi meeting, attended by more than 150 delegates and addressed by Deputy Governor of Reserve Bank of India was the 1st opportunity for the commission to have a full-fledged discussion on the revision. Such meetings have taken place in various places of the world. Further, based on these discussions, the UCP Drafting Group will problem revised draft, which will then follow and send to ICC national committees for comment. This draft, with the necessary amendments, will be explained at the next meeting of the Banking Commission in May 2006 in Vienna.

It appears that the UCPDC revision is heading into its final phases. All of the old UCPDC Articles (except Article 48) have been redrafted at lowest once, and all the drafts (in a few cases, 2nd and 3rd drafts) have been sent to national committees and other ICC commissions for comment.

Once the new UCPDC is ready, the UCP Drafting Group proposes to create a Commentary pertaining to the new rules. The Commentary, which would be created by the Drafting Group as a whole, is likely to be based on the differences ranging from 500 and 600 and any problems that come out in relation to why something in the new UCPDC was worded in a specific way. This is keeping in tune with the earlier practice.



Caselet 2

learn the caselet carefully and ans the subsequent questions:

8. The WTO’s creation on one January 1995 marked the biggest reform of international trade since after the 2nd World War. explain the different principles of trading system as proposed by WTO.

(10 marks) < ans >

Earning:   Approval pending.