Article wise description of eURC Rules-ARTICLE e3 RELATIONSHIP OF THE eURC TO THE URC

a. An eURC collection instruction is also subject to the URC without express incorporation of the URC.

b. Where the eURC applies, its provisions shall prevail to the extent that they would produce a result different from the application of the URC.

c. Where an eURC collection instruction is issued but the presentation consists of only paper documents, the URC alone shall apply. 

COMMENTARY

This article is the replica of Article e2 of eUCP 600 Version 2.0 which describes the relationship of the eUCP to UCP as follows:

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RELATIONSHIP OF THE eUCP TO THE UCP

a. An eUCP credit is also subject to the UCP without express incorporation of the UCP.

b. Where the eUCP applies, its provisions shall prevail to the extent that they would produce a result different from the application of the UCP.

c. If an eUCP Credit allows the beneficiary to choose between presentation of paper documents or electronic records and it chooses to present only paper documents, the UCP alone shall apply to that presentation. If only paper documents are permitted under an eUCP Credit, the UCP alone shall apply. 

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The interdependence between the eURC and URC 522 is clearly indicated in eURC sub-article e2 (a) (Scope of the eURC). As a consequence of this correlation, eUCP article e3 goes on to clarify how such interdependence will work in practice.

RELATIONSHIP

As highlighted by eURC article e2, the intent of the eURC rules is that they function by reference to URC 522, and do not stand as a set of self-contained rules, such as ISP98 or URDG 758. Subarticle e3 (a) provides that there is no need to expressly incorporate URC 522 within an eURC collection instruction. Such collection instructions are automatically also subject to URC 522.

IMPACT ON URC 522 ARTICLE 1 (APPLICATION OF URC 522)

In view of the above, i.e. no need to expressly stipulate URC 522 in an eURC collection instruction, the content of URC 522 article 1 additionally refers to an eURC collection instruction. Sub-article e3 (b) clarifies that, in these circumstances, the provisions of eURC will prevail in the event of any ‘conflict’ with URC 522.

URC 522 REFERENCE

Whilst the above makes it clear that there is no actual need to provide specific reference in an eURC collection instruction to URC 522, it may well be considered as good practice and prudent to provide such reference, e.g. by stating that an eURC collection instruction is ‘also subject to URC 522’. This would provide transparency to all parties concerned and ensure that there is no doubt of the continued pertinence of URC 522.

APPLICABILITY OF URC 522 ALONE

The content of eURC sub-article e3 (c) highlights circumstances wherein the eURC would not apply, despite reference to the eURC in the collection instructions. This would be the case when only paper documents are presented without any electronic records. The eURC can only apply to presentations containing electronic records.