Blog

Understanding Article 17 of UCP 600: Original Documents and Copies

In letters of credit (LCs), the type and format of documents presented can determine whether payment is made or refused. Article 17 of UCP 600 sets the rules on what counts as an “original” document, how many originals must be presented, and when copies are acceptable.

This article ensures uniform treatment of documents across global trade and prevents disputes about authenticity.

What Does Article 17 of UCP 600 Say?

Article 17 outlines several key rules:

Definition of Original

  • A document is considered an original if it appears to be signed, stamped, or otherwise authenticated.
  • Words like “original” or “duplicate” may also indicate its status.

Multiple Originals

  • If an LC calls for an “original,” at least one original must be presented.
  • If the LC requires “copies,” originals will also satisfy that requirement.

Presentation of Copies

  • Unless the LC specifies otherwise, a document marked as a copy is acceptable if no original is required.

Signed vs. Unsigned Documents

  • Documents requiring signatures (e.g., certificates, invoices) must bear them.
  • If no signature is required by the LC or UCP rules, an unsigned document may still be acceptable.

Banks’ Discretion

  • Banks are not obligated to check whether an original is truly original beyond its appearance on the face.

🔎 Breaking Down Article 17

Why Define “Original”?

  • Prevents disputes between banks, exporters, and importers about whether documents are authentic.
  • Ensures consistent interpretation worldwide.

Originals vs. Copies

  • If an LC demands three originals, the exporter must provide exactly that.
  • If the LC says “copies,” exporters can provide copies — but originals are also acceptable.

Exporter’s Responsibility

  • Exporters must carefully check the LC to know how many originals or copies are required.
  • Mistakes in document format are one of the most common causes of LC discrepancies.

Bank’s Role

  • Banks only check the document’s face value — they do not investigate beyond its appearance.
  • This keeps their responsibility clear and limited.

Practical Trade Example

A Bangladeshi exporter sells tea to a buyer in the UK. The LC requires:

  • 3 original invoices
  • 2 copies of the packing list

The exporter presents:

  • 2 originals and 1 photocopy of the invoice (❌ discrepancy — not enough originals).
  • 2 copies of the packing list (✔ compliant).

The issuing bank will raise a discrepancy because the requirement of three originals was not met.

✔ If the LC had asked for “3 copies of invoice,” the exporter could have submitted either 3 copies or 3 originals, both acceptable.

Why Article 17 Matters

  • Provides clarity on what counts as an original.
  • Reduces disputes over document authenticity.
  • Protects banks from excessive liability by limiting their duty to the document’s appearance.
  • Reminds exporters to carefully follow LC requirements on document numbers and format.

Final Thoughts

Article 17 of UCP 600 highlights a critical detail in LC transactions — the difference between originals and copies. Exporters must be precise in preparing documents because even small errors (like sending one fewer original) can delay payment. By setting uniform rules, Article 17 strengthens consistency and trust in international trade.

Leave a Reply