The continued growth of the documentary credit as a means of financing international trade since the second world war has given rise to an increased need for an awareness by the business community of the law and practice relating to them. The I.C.C. has greatly assisted the adoption of this method of finance by producing The Uniform Customs and Practice for Documentary Credits, the most recent edition of which was produced in 1974 under the chairmanship of Mr Bernard Wheble. To assist the merchant to understand the Uniform Customs, and to enhance his knowledge of the law and practice of documentary credits, the I.C.C. has now produced the above Guide.

The Guide does not seek to analyse in depth the legal complexity surrounding documentary credits, nor to set out in detail the variety of practices adopted by banks for the conduct of credit business. Seeking to aid the merchant in the day-to-day practice of his business, it sets out the procedures, step by step, which will be encountered in the opening of credits, the presentation of documents in a credit, and at the procedures looking at each operation from the point of view of the seller and buyer respectively. The text then explains the workings of four special types of credit, revolving credits, red clause credits, transferable credits and back to back credits, goes on to set out some common sense rules to be observed by both parties when using credits and sets out invaluable sets of checklists for applicants, banks and beneficiaries. The text is kept simple, and technical terms are largely avoided. Where they are used, they are clearly explained. Each part of the text dealing with procedures is clearly illustrated with diagrams showing how the rights and obligations flow between the seller, the issuing and accepting banks and the buyer.

In addition to the explanatory text, examples are given of several types of documents used in credit transactions, so that the reader can see for himself the form and content usually adopted. In addition, so as to provide some guide for the more specific problems which may arise, the I.C.C. Uniform Customs are set out verbatim at the end of the text.

The Guide therefore clearly points out the pathways which those seeking to use documentary credits must tread. To do more would be impractical, as all credits are issued as a result of negotiations between the applicant and his bank which does not lend itself to strict analysis. To seek to explain the morass of legal considerations to the readership at which it is aimed would also detract from the concept of a simple guide. Thus, for the merchant already heavily engaged in finance of this sort, or for the practising lawyer, the Guide is of very limited value, but for the expert seeking the path to expansion of his financial facilities and capacities in the export field the Guide provides an invaluable route map.