In international trade, Letters of Credit (LCs) rely heavily on communication — often transmitted via SWIFT, mail, fax, or courier. But what happens if a message is delayed, distorted, or lost during transmission?
Article 35 of UCP 600 provides clarity and protection to banks in such cases.
👉 Banks are not responsible for delays, loss in transit, mutilation, or other transmission errors of any messages, letters, or documents — whether sent by mail, courier, electronic means, or otherwise.
This article ensures that banks are not held liable for problems beyond their control once documents or messages leave their possession.
📖 What Does Article 35 of UCP 600 Say?
1️⃣ No Liability for Transmission Errors
Banks assume no responsibility for any loss, delay, mutilation, or errors that occur during the transmission of messages or documents — whether via mail, courier, telex, SWIFT, or electronic communication.
If a message is delayed or arrives distorted, the bank that sent it cannot be blamed, as long as it was sent using standard procedures.
2️⃣ No Responsibility for Translation or Interpretation
If a message, document, or instruction requires translation, banks are not responsible for any misinterpretation or consequences arising from such translation.
Responsibility for providing accurate translations lies with the parties involved (importer/exporter), not the banks.
3️⃣ Delivery at Applicant’s or Beneficiary’s Risk
Once a bank dispatches documents or messages as instructed, the risk shifts to the applicant or beneficiary.
For example, if a bank mails original shipping documents and they get lost in transit, the bank bears no responsibility.
🔎 Breaking Down Article 35
💡 Why This Matters
This article safeguards banks from operational risks and communication failures. It acknowledges that transmission errors or losses may occur despite due care — and banks should not be penalized for circumstances beyond their control.
It also reinforces the principle that banks’ responsibility ends when documents are properly dispatched, not when they are successfully received.
🚢 Exporter’s Responsibility
✔ Ensure that the documents sent are correct, complete, and clearly addressed.
✔ Use reliable courier or electronic channels when delivering time-sensitive documents.
✔ Confirm receipt with the bank or applicant to avoid misunderstandings.
🏦 Importer’s Responsibility
✔ Instruct the issuing bank clearly regarding how documents should be transmitted (courier, email, SWIFT).
✔ Assume risk once the documents are dispatched.
✔ Arrange appropriate insurance coverage for valuable or original documents in transit.
🏛 Bank’s Role
Banks are required to:
✔ Dispatch documents as per standard banking practice and applicant’s instructions.
✔ Ensure accuracy of message before sending.
✔ Not be responsible for errors, delays, or loss after dispatch.
This keeps the banking process efficient, predictable, and fair.
🌍 Practical Trade Examples
Scenario 1: Delay in Courier Delivery (Bank Not Liable)
The issuing bank sends the original documents to the applicant via courier. Due to customs delay, documents arrive three days late, causing demurrage charges at the port.
✔ Under Article 35, the bank is not responsible — its duty was fulfilled once documents were properly dispatched.
Scenario 2: Transmission Error in SWIFT Message (Bank Not Liable)
The advising bank transmits LC terms through SWIFT. A network glitch distorts one field in the message.
✔ As long as the bank used standard communication procedures, it bears no liability for system-related errors.
Scenario 3: Translation Misunderstanding (Bank Not Liable)
A beneficiary submits documents in French. The issuing bank translates them incorrectly, leading to a payment dispute.
✔ The bank is not liable for translation errors — responsibility lies with the party providing the documents or translation.
✅ Why Article 35 Matters
- Reinforces that banks’ obligations are limited to dispatch and standard practice.
- Shields banks from liability for communication and courier failures.
- Reminds trading parties to manage transmission risks effectively.
- Maintains efficiency and confidence in global trade communication systems.
✍️ Final Thoughts
Article 35 of UCP 600 plays a vital role in defining the limits of banks’ responsibilities in the complex world of international trade communications. It ensures that once a bank has acted in good faith and dispatched documents or messages correctly, it cannot be held responsible for what happens afterward.
In essence, this article shifts the risk of loss, delay, or transmission error to the trading parties — encouraging exporters and importers to use reliable channels and confirm receipt. Banks remain neutral intermediaries whose duty ends at proper dispatch, not at delivery or receipt.