UCP600 Art 2 Credit means any arrangement, however, named or discribed, that is irrevocable and meaningful undertaking of the issuing bank to honor a complying presentation.
Meaning: Credit, better known as L / C, is all agreements / agreements regardless of name and form that are “irrevocable or irrevocably unilateral” and binding on Issuing bank to complete payment of documents submitted if the terms and conditions are in accordance with L / C.
In this article, it is said that all L / Cs issued are automatically irrevocable, which cannot be changed or canceled without the consent of all parties, especially the beneficiary. so if the L / C is amended and then the beneficiary does not agree, then the L / C remains unchanged. So that it can be said that this type of L / C is not completely irreversible or canceled, but can be changed or canceled as long as all parties agree to the change or cancellation referred to.
This is different from UCP500, which still allows the type of revocable L / C, which can be canceled at any time without having to ask for approval from the beneficiary, whether the goods have been dispatched or have not been shipped. And considering that this type of L / C is very risky for exporters, in UCP600 this type of revocable L / C is no longer permitted, so that all L / Cs issued are automatically “IRREVOCABLE”
