ICC Rule Sets: When to Use Each

• UCP 600 governs documentary letters of credit (import/export credits) under banks’ independent payment obligations.
• URDG 758 applies to demand and performance guarantees issued as unconditional undertakings.
• ISP98 frames standby letters of credit, mirroring UCP style for standbys with cure periods and documentary compliance.
• eUCP(Electronic Supplement) augments UCP 600 for credits requiring electronic presentation of documents.

Sample UCP 600 Documentary LC Draft

 Issuing Bank: [Name & Address]
Applicant: [Name & Address]
Beneficiary: [Name & Address]
LC No.: [UCP600-001]
Amount: USD [Amount]
Expiry: [Date] at Issuing Bank’s Counters
Governing Rules: UCP 600
We hereby issue in your favour our irrevocable credit available by your draft(s) at sight drawn on [Issuing Bank] for up to an aggregate amount of USD [Amount], upon presentation of:
  1. Your signed draft(s) stating “drawn under UCP 600, LC No. UCP600-001 for USD [Amount]”;
  2. One original Commercial Invoice in [3] copies, indicating shipment details;
  3. Full set of clean on-board ocean bills of lading marked “freight prepaid”;
  4. Packing list, certificate of origin and insurance policy endorsed to [Issuing Bank].
Partial shipments allowed. Presentation within 21 days after shipment and on or before expiry date. 

Sample URDG 758 Guarantee Draft

 Beneficiary: [Name & Address]
Applicant: [Name & Address]
Guarantor: [Issuing Bank & Branch]
Guarantee No.: [URDG-12345]
Maximum Liability: USD [Amount]
Expiry: [Date] at [Location]
In consideration of the Applicant’s request, we irrevocably undertake to pay the Beneficiary upon first written demand any amount up to USD [Amount], accompanied by:
  • A demand letter signed by the Beneficiary stating the Applicant’s failure under [Contract Ref].
This guarantee is subject to URDG 758. Claims must be presented on or before the expiry date at our counters. 

Sample ISP98 Standby LC Draft

 Applicant: [Name & Address]
Beneficiary: [Name & Address]
Issuing Bank: [Bank & Branch]
SBLC No.: [ISP98-67890]
Amount: USD [Amount]
Expiry: [Date] at [Place]
We undertake to honour your demand for payment under this Standby Letter of Credit up to USD [Amount] upon presentation of:
  • Your signed demand stating “Applicant has defaulted under [Contract Ref]; please effect payment under ISP98 Standby.”
This standby is governed by ISP98. Partial draws permitted. 

eUCP Electronic Supplement

When documents are presented electronically, include the clause:

 “All presentations under this credit may be made electronically in compliance with eUCP (Electronic Supplement to UCP 600), with data set forth in accordance with ICC Publication 792.” 

Best Practices in LC Drafting

• Exact References: Match contract numbers, dates and parties precisely.
• Document Clarity: List only essential documents to reduce discrepancy risk.
• Allow Partial Drawings: State “partial and multiple drawings permitted” when needed.
• Expiry Location: Use the issuer’s counters or a major financial centre for convenience.
• Electronic Presentations: Add eUCP clauses for digital document submission where applicable.

Disclaimers & Important Considerations

The sample drafts are illustrative and not legal advice. Final wording must be reviewed by legal counsel for compliance with UCP 600, URDG 758, ISP98 and any relevant supplements.

FG Capital Advisors provides advisory services only. Engage independent legal, trade compliance and tax advisors before issuing or amending any letter of credit.