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In international trade, accurate communication is essential. When a letter of credit (LC) is issued or amended, the beneficiary (exporter) must receive the details in an authentic and reliable way. Article 9 of UCP 600 sets out the responsibilities of an advising bank in transmitting an LC or its amendments.

This article ensures that exporters can trust the LC received and prevents fraud or miscommunication.

What Does Article 9 of UCP 600 Say?

Article 9 states that:

1. Advising of Credits
   
   • An issuing bank may send the LC directly to the beneficiary or through an advising bank.
   • The advising bank’s duty is to check the authenticity of the LC and forward it without responsibility for the content.
3. Advising of Amendments
   
   • Any amendment issued by the issuing bank must also be authenticated by the advising bank before being passed to the beneficiary.
   • If authenticity cannot be verified, the advising bank must inform the party from whom it received the message.
5. No Obligation to Confirm
   
   • Advising a credit does not mean confirming it.
   • The advising bank only authenticates and forwards; it does not undertake to honor or negotiate unless it expressly adds confirmation.

Breaking Down Article 9

1. Authenticity Check
   
   • The advising bank ensures the LC or amendment genuinely comes from the issuing bank.
   • This prevents fraudulent documents from reaching the exporter.
3. Neutral Role
   
   • The advising bank does not change, interpret, or guarantee the LC terms.
   • Its job is only to forward the authenticated credit or amendment.
5. Amendment Advising
   
   • Any change (e.g., extended shipment date, modified goods description) must also pass through authentication.
   • Exporter is only bound by amendments they accept.
7. No Automatic Confirmation
   
   • Simply advising does not create payment obligations for the advising bank.
   • Exporters must distinguish between an advising bank and a confirming bank.

Practical Trade Example

• A Bangladeshi exporter of leather goods receives an LC issued by an importer’s bank in Italy.
• The issuing bank routes the LC through Dutch-Bangla Bank, Dhaka, as the advising bank.
• Dutch-Bangla Bank checks the authenticity of the LC and forwards it to the exporter.
• Later, the Italian bank issues an amendment extending the shipment deadline.
• Dutch-Bangla Bank authenticates the amendment and notifies the exporter.

✔ The exporter can now rely on the authenticity of the LC and amendment, knowing they are genuine.

✔ However, Dutch-Bangla Bank has no payment obligation unless it adds confirmation.

Why Article 9 Matters

• Ensures exporters receive only authentic LCs and amendments.
• Protects against fraud in cross-border transactions.
• Clarifies that advising is not the same as confirming.
• Strengthens trust in the LC process by defining the limited but critical role of advising banks.

Final Thoughts

Article 9 of UCP 600 highlights the importance of authenticity in trade finance. Advising banks act as trusted messengers, ensuring the exporter receives genuine LCs and amendments. While they do not guarantee payment (unless confirmed), their role builds confidence by safeguarding communication between issuing banks and beneficiaries