TFPD_09: The UCP 600 and ISBP are impossible books to read – part 2 of 2
Trade Finance Paradigm #9: The UCP 600 and ISBP are
impossible books to read – part 2 of 2
This blog post is the second part of the Trade Finance
Paradigm: The UCP 600 and ISBP are impossible books to read.
A couple of years back I was doing an ISBP course. The
course took place in the first week of January. Just before Christmas I send a
“present” to all of the people to participate in the ISBP course. When then
opened it – they found the “ISBP - International Standard Banking Practice for
the Examination of Documents under Documentary Credits, 2007 Revision for UCP
600 – ICC publication No. 681” … with a very “kind” note from me, basically
saying that “here is some good Christmas reading – essential in order to be
prepared for the course.”
Personally I found this a very kind gesture – but I was soon
to learn that not all of the participants would agree to that. In fact quite a
few reverted to me complaining that reading through this big book – would
totally destroy their Christmas AND New Year…
This reaction gave me some “homework” over the Christmas
holidays – because I simply did not understand that reaction. First of all – I
found it a good practical joke. Of course humour differ between people – but
still; the participants were not unfamiliar with the ISBP. In fact they all had
worked in the trade finance department 1-2 years. So asking them to read the
core book on how to examine LC documents should not be a huge challenge…
Sometimes around New Years Eve I came to the conclusion that
I had to change the beginning of the course. I simply had to add an
introduction on how to read textbooks. In the hours when one year turned into
another year, it occurred to me that some of the people working within one of
the most “technical” areas – an area flooded with highly detailed textbooks –
did not really know how to read a textbook …
My conclusion was that the harsh reaction to my little
Christmas joke was based on the fact, that the approach to reading the ISBP
over Christmas was the same as if they were to read a Harry Potter book.
Starting at page one … and seeing the plot unveil from page to page … building
up to the climax where Harry is to fight Voldemort. But ISBP is NOT Harry
Potter. The ISBP is a textbook. Although both are made up with many words – it
makes no sense reading them the same way.
Here it seems appropriate to make a “link” to the previous
blog post: The UCP 600 articles should NOT be read from cover to cover – but
one should read what is relevant for the purpose of what the “needs” are in
terms of what one is doing right now.
For the ISBP this is a bit different – because you need the
ISBP for mainly one purpose: Checking the documents presented under an LC.
However – if you read the ISBP from cover to cover for the
first (or second) time, then you will not be able to remember the content,
because you are overwhelmed with pieces of information. Your brain cannot grasp
so much – and so detailed information in one go!
So how to do it?
Simple actually. You need to browse through the book. Making
a note on
1) How it is structured, and
2) what information is available in the ISBP.
So if you use one hour browsing back and forth in the ISBP –
then you have come a long way … because then you know what to find – and where
to find it.
But after that – do NOT place the ISBP at the bottom of the
drawer! But rather keep the ISBP with you at all times. Preferably in your
pocket – or in your bag, but at least next to you when you are examining the
documents – and every time you meet one of the pieces of information identified
to be in the ISBP (your brain will tell you because you made a note of it –
remember!), take it – and find the relevant paragraph, and read it carefully
relating it to the issue at hand. Having done that a couple of months – you
need not look up anything anymore – because you know the ISBP from cover to
cover!
So what can I say: Happy ISBP reading! And luckily for you –
an new one is coming – very soon! Look out for it.
Take care of each other and the LC!
Kim