IRREVOC TRANS STANDBY – The standby letter of credit is irrevocable and transferable
IRREVOCABLE – The documentary credit is irrevocable
IRREVOCABLE STANDBY – The standby documentary credit is irrevocable
IRREVOCABLE TRANSFERABLE – The documentary credit is irrevocable and transferable
REVOCABLE – The documentary credit is revocable
REVOCABLE STANDBY – The standby documentary credit is revocable
REVOCABLE TRANSFERABLE – The documentary credit is revocable and transferable
Article 3 of UCP600 stated that “…a credit is irrevocable even if there is no indication to that effect”.
This article says that, if none of the above codes are expressly indicated in field 40A of the SWIFT format, the LC is deemed irrevocable. Since field 40A is a mandatory field, it is a practice by banks worldwide to expressly indicate a code under this field. Article 3 of UCP600 is merely discouraging the practice of issuing a revocable LC to protect the interest of the seller. But this does not however, prohibits the practice of issuing a revocable LC. By virtue of article 1 which says, “…they are binding on all parties thereto unless expressly modified or excluded by the credit”.
This article allows both parties to modify or exclude some or part of the articles where a revocable LC may be an option.