'Strengthen regulatory framework for ITP'

Kolkata, Jan 17: The regulatory framework should be strengthened to allow transparent international trade payment (ITP) system, SBI Foreign Department General Manager K Ramchandran said here today.

Speaking at a seminar on "Trade Payments&Letter of Credits," he said, ''Payments in international trade transactions have several forms. Letter of credit is considered as one of the convenient safe instruments in international trade both by the exporters and importers.'' The standards that banks adopt for determining whether documents conform to terms and conditions of letter of credit vary, he said.

The International Chamber of Commerce (ICC) has codified the standards in its publication no 645 viz, international standard banking practices for examination of documents under letters of credit (ISBP-645).

The rules governing letters of credit like the uniform customs and practices for documentary credits, International Chamber of Commerce (ICC) has now been revised and the new UCP 600 would come into force from July 1, 2007.

UNI