UCP 600 Article 36 (Force Majeure) — Interruption of Documentary Credit Operations and Bank Liability

What Is the UCP 600 Force Majeure Provision?

The UCP 600 force majeure provision addresses a bank’s responsibility where its business is interrupted by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, strikes, lockouts, or other causes beyond its control.

Article 36 of UCP 600 is titled “Force Majeure.”

The central effect of Article 36 is that a bank assumes no liability or responsibility for consequences arising from an interruption of its business caused by an event beyond its control.

Where a credit expires during the interruption, the bank will not, unless specifically authorized, honour or negotiate under that credit after it resumes business.

A documentary credit is an important means of reducing an exporter’s payment risk. However, it does not provide an unconditional guarantee that payment will be completed during war, political disturbance, natural disaster, bank closure, communication failure, or another event that prevents the banks from operating.

Article 36 concerns interruption of the business of banks involved in a documentary credit. It does not determine whether the seller or buyer is excused from performing the underlying sales contract.

Scope of This Article

Item	Covered in This Article	Topics Requiring Separate Analysis
Basic operation of Article 36	Bank-business interruption and the basic allocation of bank responsibility	All other UCP 600 articles and the complete documentary credit structure
Requirements	Causes beyond the bank’s control, interruption of business, and causation	Final legal determination and litigation in an individual case
Expiry of the credit	The basic treatment of a credit expiring during the interruption	Bank-specific amendment, reissuance, or specific authorization procedures
Sales contract	The difference from a force majeure clause in the underlying contract	Contract termination, damages, and detailed governing-law analysis
Confirmed credit	The confirming bank’s independent undertaking and force majeure exposure	Confirmation fees, confirmation conditions, and bank credit approval
Silent Confirmation	Its difference from formal confirmation and the scope of contractual protection	Detailed Silent Confirmation agreement terms
Country risk and sanctions	War, political disturbance, transfer restrictions, sanctions, and bank closure	Application of individual national or international sanctions regimes
Trade credit insurance	Political risk and non-payment caused by external events	Individual underwriting terms and insurance claims
Marine cargo insurance	The distinction between bank-payment risk and physical cargo damage	Cargo loss adjustment and claim procedures

Purpose and Position of UCP 600 Article 36

Documentary credit transactions may involve an issuing bank, confirming bank, advising bank, nominated bank, negotiating bank, reimbursing bank, and other financial institutions.

These banks may receive and examine documents, honour, negotiate, advise, reimburse, transfer funds, and release documents.

Where their operations are interrupted by a cause beyond their reasonable control, they may be unable to perform those functions in the normal manner.

Article 36 allocates the consequences of that interruption by providing a disclaimer of bank liability or responsibility.

The existence of general social disruption or an external event does not automatically establish the application of Article 36.

It is necessary to determine whether the relevant bank’s business was actually interrupted, whether the cause was beyond the bank’s control, and whether the affected credit operation was prevented by that interruption.

Requirements for Applying Article 36

Requirement	Point to Confirm	Primary Evidence	Decision Caution
Cause beyond the bank’s control	Whether the cause was an Act of God, riot, civil commotion, insurrection, war, terrorism, strike, lockout, or another uncontrollable event	Bank notice, government announcement, disaster information, closure notice	Do not equate ordinary delay or insufficient staffing with force majeure.
Interruption of bank business	Whether the bank’s documentary credit operations actually stopped or became impossible	Closure notice, refusal to accept documents, communication record	Confirm the specific impact on the bank rather than relying only on country-wide disruption.
Causal connection	Whether presentation, examination, honour, negotiation, or remittance was prevented by the interruption	Presentation record, examination record, payment record, bank inquiry	Determine whether a separate discrepancy or breach of the credit caused the problem.
Affected bank	Whether the issuing, confirming, nominated, advising, or payment-route bank was interrupted	Credit, SWIFT messages, bank correspondence	Interruption of one bank does not necessarily discharge every other bank.
Relationship to expiry	The dates of interruption, credit expiry, and presentation deadline	Credit, amendments, shipping documents, bank business-day records	Expiry and presentation periods are not automatically extended.
Specific authorization	Whether the issuing bank or another relevant party specifically authorized post-resumption honour or negotiation	SWIFT amendment, payment authority, interbank communication	The applicant’s informal consent may not amount to formal bank authorization.

Difference from Force Majeure Under the Sales Contract

Item	Force Majeure Under the Sales Contract	Force Majeure Under UCP 600 Article 36	Practical Distinction
Relationship covered	The contract between seller and buyer	The business of banks involved in the credit	Review the sales contract and documentary credit separately.
Main issue	Whether manufacturing, shipment, delivery, or contractual performance is possible	Whether the bank can receive, examine, honour, or negotiate	Do not confuse inability to ship with closure of a bank.
Legal basis	The contractual force majeure clause and governing law	Article 36 where UCP 600 applies to the credit	Different wording and governing laws may apply.
Effect on deadlines	May concern extension of contractual delivery or performance dates	Does not automatically extend the credit or presentation deadline	Amend both the contract and credit where necessary.
Effect on liability	May affect termination, damages, or liability for non-performance	May disclaim bank responsibility for consequences of business interruption	A bank disclaimer does not automatically discharge the buyer’s payment obligation.

Recognition of force majeure under the sales contract does not automatically amend the credit expiry or presentation period.

Similarly, interruption of a bank’s business under Article 36 does not itself determine the contractual rights and liabilities of the seller and buyer.

Events That May Fall Within Article 36

• Earthquakes, floods, typhoons, tsunamis, volcanic eruptions, and other natural disasters
• Riots, civil commotions, insurrections, and widespread disorder
• Wars, armed conflict, and political upheaval
• Acts of terrorism
• Strikes and lockouts
• Unavailability of bank premises, communications, or payment infrastructure
• Other causes beyond the bank’s reasonable control that interrupt its business

The name of the event is not conclusive. The event must have interrupted the relevant bank’s business.

Political instability in the issuing bank’s country may not be sufficient where the bank continues to receive documents, examine them, and make payments in the normal manner.

Issues Not Automatically Resolved by Article 36

Issue	Treatment Under Article 36	Separate Matter to Confirm	Practical Response
Credit expiry	It is not automatically extended.	Amendment, reissuance, or specific authorization	Request an extension before expiry.
Presentation period	It is not automatically extended solely because of force majeure.	Credit terms, place of presentation, and alternative acceptance	Confirm whether an alternative presentation place or method can be authorized.
Delivery date under the sales contract	It is outside the direct scope of Article 36.	Contractual force majeure clause and governing law	Agree on a revised delivery date between seller and buyer.
Cargo-arrival costs	Article 36 does not allocate storage or delay charges.	Sales contract, carriage contract, Incoterms, and local charges	Control demurrage, detention, and storage immediately.
Sanctions preventing payment	They are not automatically treated as Article 36 force majeure.	Applicable sanctions law, governing law, and sanctions clause	Obtain transaction-specific bank and legal advice.
Physical cargo loss	It is not insured or compensated by Article 36.	Marine cargo insurance, carrier liability, and cause of loss	Give cargo-loss notice and preserve evidence separately.
Uncollected sales proceeds	A bank disclaimer and the exporter’s financial loss are separate issues.	Confirmation, credit insurance, guarantees, and sales contract	Review recovery options and insurance notice deadlines.

Why Payment May Stop Despite an L/C

A documentary credit requires the issuing bank or confirming bank to perform its undertaking against a complying presentation.

Where the bank’s business is interrupted, the bank may be unable to receive documents, examine them, honour, negotiate, accept, reimburse, transfer funds, or release documents.

The exporter and importer may be seriously affected where the credit expiry, presentation period, maturity, or payment date falls within the period of interruption.

The existence of an L/C does not eliminate bank-closure risk, legal prohibition on payment, or expiry of the credit.

Functions That May Be Interrupted and Issues Not Automatically Resolved

Area	Function Potentially Affected	Issue Not Automatically Resolved	Party to Consult
Bank acceptance	Physical presentation, courier delivery, electronic-record acceptance	Automatic extension of the presentation deadline	Presenting, nominated, and issuing banks
Document examination	Examination, discrepancy determination, refusal notice	Automatic waiver of discrepancies	Nominated, confirming, and issuing banks
Honour or negotiation	Honour, negotiation, acceptance, and payment at maturity	Automatic payment after business resumes	Bank owing the documentary credit undertaking
Interbank transfer	Reimbursement, foreign exchange transfer, correspondent-bank processing	Availability of an alternative payment route	Reimbursing, remitting, and correspondent banks
Release of documents	Release of B/Ls, insurance documents, and commercial documents	Allocation of storage or delay costs	Issuing bank, importer, and freight forwarder
Sales contract	Performance may be indirectly delayed by bank closure.	Contractual liability of the seller or buyer	Contracting parties and appropriate advisers

Where the Credit Expires During the Interruption

A particularly important part of Article 36 concerns a credit that expires while the bank’s business is interrupted.

Where the credit expires during the interruption, the bank will not, unless specifically authorized, honour or negotiate under that credit after resuming its business.

It is therefore unsafe to assume that the credit expiry or presentation period is automatically extended because a force majeure event occurred.

Continuing the transaction after business resumes may require an amendment, reissuance, specific authorization from the issuing bank, or agreement on another payment method.

As soon as a possible force majeure interruption is identified, the exporter and importer should verify:

• Credit expiry
• Latest shipment date
• Presentation period
• Place of presentation
• Business status of the presenting and issuing banks
• Availability of an alternative place of presentation
• Possibility of issuing an amendment
• Position of the confirming or nominated bank

Article 36 Decision Flow

Stage	Point to Confirm	Decision	Next Action
1. Identify the event	Whether a disaster, war, riot, terrorism, strike, or another external event occurred	Whether it may be beyond the bank’s control	Review official government and bank information.
2. Confirm bank interruption	Whether the bank stopped receiving, examining, honouring, or negotiating	Whether there was an actual interruption of business	Obtain written information from the bank.
3. Identify the affected bank	Which issuing, confirming, nominated, or other bank was interrupted	Which undertaking or operation was affected	Review each bank’s role under the credit.
4. Confirm presentation status	Whether documents were unpresented, presented, or under examination	The operational stage at the time of interruption	Preserve the presentation and bank-receipt records.
5. Check deadlines	Whether expiry or the presentation deadline will occur during interruption	Whether the credit may expire	Request an amendment before expiry.
6. Review alternatives	Whether another place, bank, electronic method, or payment route can be used	Whether the effect of interruption can be avoided	Obtain formal bank approval for the alternative.
7. Confirm post-resumption authority	Whether there is specific authorization for an expired credit	Whether honour or negotiation may resume	Obtain clear written authority from the relevant bank.
8. Address residual loss	Whether non-payment, cargo delay, or additional costs arose	Whether the matter concerns the sales contract, insurance, or another liability	Give insurance notice, control costs, and begin recovery action.

Common Misunderstandings

Misunderstanding	Practical Position	Caution
An L/C guarantees payment even during force majeure.	Document examination, honour, or negotiation may stop where the bank’s business is interrupted.	Review the affected banks and credit deadlines.
The credit is automatically extended during force majeure.	Article 36 does not provide an automatic extension.	Consider an amendment or reissuance promptly.
An expired credit must be paid when the bank reopens.	The bank will not honour or negotiate after resumption unless specifically authorized.	Obtain formal authorization from the relevant bank.
A confirmed credit eliminates all force majeure risk.	The confirming bank may itself be interrupted or legally prohibited from paying.	Review its location and operational resilience.
Silent Confirmation is the same as formal UCP confirmation.	It is a separate contract between the exporter and a third-party bank.	Review the bank, covered risks, conditions, and exclusions.
A force majeure clause in the sales contract protects the L/C deadline.	The sales contract and credit are independent transactions.	A separate credit amendment is required.
All financial sanctions constitute Article 36 force majeure.	Sanctions depend on the applicable law, governing law, and specific transaction facts.	Distinguish force majeure from a legal prohibition on payment.
A late presentation becomes compliant if force majeure is explained.	Article 36 does not automatically cure a stale presentation or other discrepancy.	Review amendment or waiver options.
Marine cargo insurance covers interruption of bank payment.	Marine cargo insurance primarily covers physical cargo loss or damage.	Consider trade credit insurance for payment risk.
Trade credit insurance always recovers the full amount.	Coverage depends on insured risks, credit limits, notice, exclusions, and loss determination.	Give early notice and review the policy terms.

Relationship with a Confirmed Credit

Where the issuing bank or its country presents material risk, a beneficiary may request confirmation by another bank.

The confirming bank adds its own independent undertaking to honour a complying presentation under UCP 600.

However, where the confirming bank’s own business is interrupted by force majeure, presentation to or payment by that confirming bank may also be affected.

Where sanctions law or another legal prohibition applies in the confirming bank’s jurisdiction, legal performance must be reviewed separately from Article 36.

Selection of a confirming bank should therefore consider not only creditworthiness, but also location, operational continuity, place of presentation, payment currency, and payment route.

Relationship with Silent Confirmation

Silent Confirmation is a separate arrangement under which a third-party bank, without appearing as a confirming bank in the credit, agrees with the exporter to assume specified issuing-bank or country risks.

It is legally and operationally different from formal confirmation under UCP 600.

The third-party bank’s obligation in a force majeure situation depends on the covered event, payment conditions, waiting period, exclusions, sanctions provisions, and required evidence in the Silent Confirmation agreement.

The existence of Silent Confirmation is not sufficient by itself. The exporter must identify which bank’s failure and which causes are covered.

Comparison of Confirmation, Silent Confirmation, and Trade Credit Insurance

Method	Primary Role	Risks Potentially Covered	Basic Trigger	Main Caution
Confirmed credit	Adds the confirming bank’s independent undertaking	Issuing-bank risk and part of the issuing-country risk	A complying presentation to the confirming bank	Review force majeure, sanctions, and legal restrictions affecting the confirming bank.
Silent Confirmation	Provides risk protection under a separate contract with a third-party bank	Specified issuing-bank and country risks	The payment event and documents defined in the separate agreement	It is not formal confirmation, and coverage depends on the wording.
Trade credit insurance	Insures non-payment caused by commercial or political risk	Buyer default, insolvency, transfer restriction, war, political disturbance, foreign exchange shortage	An insured event and satisfaction of policy conditions	Review country coverage, credit limit, notice, exclusions, and uninsured percentage.
Marine cargo insurance	Covers physical loss of or damage to cargo during transit	Damage, loss, theft, and general average	Physical cargo loss caused by an insured peril	Bank interruption and sales-proceeds non-payment are not its primary subject.

Relationship with Country Risk

Country risk is the risk that political, economic, financial, or legal conditions in a country will prevent payment, remittance, document processing, or cargo collection, independently of the individual buyer’s creditworthiness.

War, political upheaval, civil disturbance, foreign exchange shortage, transfer restrictions, bank closure, and government action may directly affect an L/C transaction.

Documentary credit risk assessment should consider:

• The issuing bank’s creditworthiness and country
• The existence and location of a confirming bank
• The payment currency
• The reimbursing and correspondent banks
• Foreign exchange and transfer restrictions
• Political and economic conditions
• Country and credit limits under trade credit insurance

Relationship with Financial Sanctions

Financial sanctions may interact with Article 36, but they are not automatically treated as force majeure under Article 36 in every case.

A physical interruption of bank operations caused by disaster or war differs from a legal prohibition preventing the bank from making a payment or processing a transaction.

Where sanctions are involved, the bank must consider UCP 600 together with applicable sanctions law, AML and CFT rules, the governing law of the credit, contractual sanctions clauses, and internal compliance requirements.

A general sanctions concern or internal risk assessment does not necessarily justify non-payment in every case. The bank must identify the relevant legal prohibition or contractual provision and its application to the actual transaction.

Sanctions review may include:

• Exporter and importer
• Issuing, confirming, and nominated banks
• Reimbursing and payment-route banks
• Goods and end use
• Origin, destination, and transit countries
• Vessels, aircraft, carriers, and beneficial owners
• Payment currency

Relationship with Trade Credit Insurance

Where force majeure-related events result in non-payment, political-risk coverage under trade credit insurance may become relevant.

Depending on the policy, political risk may include war, civil disturbance, political change, transfer restriction, foreign exchange shortage, import restriction, or government action.

Even where an L/C is used, interruption of the issuing bank, transfer restrictions, foreign exchange shortage, or political disturbance may prevent collection of the credit proceeds.

Coverage depends on the policy, insured country, credit limit, cause of loss, notice requirements, waiting period, loss determination, and exclusions.

The exporter should notify the insurer or relevant insurance institution promptly after learning of material payment delay or bank interruption.

Difference from Marine Cargo Insurance

Item	UCP 600 Article 36	Marine Cargo Insurance	Trade Credit Insurance
Primary subject	Interruption of bank business in a documentary credit transaction	Physical loss of or damage to cargo during transit	Risk of uncollected sales proceeds
Typical issue	Inability to present, examination stoppage, delayed payment, credit expiry	Breakage, water damage, theft, total loss, general average	Buyer default, transfer restriction, political upheaval, foreign exchange shortage
Primary documents	Credit, amendment, bank notice, presentation record	Insurance policy, Survey Report, transport documents, damage evidence	Policy, Invoice, payment record, bank notice
Decision focus	Relationship between bank interruption, deadlines, and bank undertakings	Whether physical cargo loss was caused by an insured peril	Whether non-payment resulted from an insured event

Where war or civil disturbance occurs, bank-payment interruption, physical cargo damage, and non-payment of sales proceeds must be assessed under separate legal and insurance frameworks.

Cases Commonly Encountered in Practice

Case	Main Cause	Documents to Review	Decision Point	Initial Response
The issuing bank stopped operating because of civil unrest.	Civil unrest and bank closure	Credit, bank notice, government announcement	Whether the issuing bank’s business was actually interrupted	Review the confirming bank, nominated bank, and credit expiry.
The credit expired during the bank interruption.	No extension was obtained before expiry.	Credit, amendment history, bank business records	Whether specific post-resumption authorization exists	Discuss reissuance, amendment, or another payment method.
Documents could not be presented because the presenting bank was closed.	Closure of the place of presentation after a disaster	Credit, courier record, bank closure notice	Whether an alternative place of presentation was authorized	Request an extension and amendment of the place of presentation.
The bank stopped while presented documents were under examination.	War or disaster-related interruption	Bank receipt, presented documents, examination status	Whether a timely presentation had already been completed	Preserve the presentation record and confirm post-resumption processing.
Payment stopped because of sanctions.	Sanctions affecting a party, goods, or bank	Sanctions notice, credit, bank explanation, transaction documents	Whether the case concerns Article 36 or a legal prohibition	Consult the bank and sanctions counsel.
A stale B/L issue and force majeure delay occurred together.	Document-preparation delay followed by bank closure	B/L, credit, presentation period, courier record	Whether the documents were already late before force majeure	Review amendment or waiver options.
The confirming bank itself stopped operating.	Disaster or disorder in the confirming bank’s country	Confirmed credit, bank notice, presentation record	Whether valid presentation to the issuing or another nominated bank remains possible	Review the place of presentation and each bank’s undertaking.
The importer could not obtain the B/L and the cargo remained at the port.	Interruption of the issuing or collecting bank	B/L, Arrival Notice, D/O conditions, cost statement	Whether an alternative delivery procedure or L/G is available	Contact the bank, shipping line, NVOCC, and insurer.
A correspondent bank in the payment route stopped processing.	Payment-system interruption or sanctions	SWIFT messages, payment instructions, bank inquiry	Whether the bank undertaking and actual transfer delay can be separated	Discuss an alternative payment route or currency.
Notice to the trade credit insurer was delayed.	The exporter assumed that the L/C would eventually be paid.	Policy, bank notice, overdue-payment record	Whether notice and loss-mitigation obligations were satisfied	Notify the insurer immediately.

Example 1: War Stops the Issuing Bank and the Credit Expires

Assume that the exporter ships the goods in accordance with the credit, but war begins in the issuing bank’s country and the issuing bank suspends all documentary credit operations.

The exporter prepares the documents, but the credit expires while the bank’s business remains interrupted.

Interruption caused by war may fall within Article 36. However, Article 36 does not automatically extend the credit.

After the bank resumes business, it will not automatically honour or negotiate under the expired credit unless specifically authorized.

Before expiry, the exporter and importer should explore an amendment, presentation to a confirming or other authorized bank, or another payment arrangement.

Example 2: A Payment Bank Stops Processing Because of Sanctions

Assume that the exporter makes a complying presentation to the confirming bank and the confirming bank accepts its payment obligation, but a bank in the US-dollar payment route stops processing because of sanctions screening.

It is not sufficient to conclude automatically that the case is Article 36 force majeure.

The parties must determine whether the confirming bank’s undertaking has become due, whether sanctions law legally prohibits payment, whether only one payment route is unavailable, and whether another currency or route can lawfully be used.

A general sanctions concern must be distinguished from a specific legal prohibition.

This situation requires transaction-specific review by the banks and appropriate documentary credit and sanctions specialists.

Example 3: The Confirming Bank Is Itself Closed by Force Majeure

Assume that the exporter obtains confirmation from a bank in a third country to mitigate issuing-bank and country risk.

Immediately before presentation, a major disaster occurs in the confirming bank’s country and the confirming bank stops operating.

Confirmation mitigates the issuing-bank risk, but it does not eliminate the operational risk of the confirming bank itself.

The exporter must determine whether the credit permits presentation only to the confirming bank, whether presentation to the issuing or another nominated bank is valid, and whether an amendment of the presentation period is required.

The case shows why the place of presentation and operational continuity should be reviewed together with the confirming bank’s creditworthiness.

Example 4: Force Majeure Delay and Documentary Discrepancy Occur Together

Assume that the exporter receives the B/L after shipment but takes considerable time to complete the other documents and sends them to the bank shortly before the presentation deadline.

A natural disaster then closes the presenting bank, the documents arrive after the deadline, and the B/L also contains wording inconsistent with the credit.

Force majeure does not automatically cure both the late presentation and the documentary discrepancy.

The parties must determine whether timely presentation was already unlikely before the interruption, whether the discrepancy independently justifies refusal, and whether an amendment or waiver can be obtained.

Article 36 is not a general remedy for pre-existing document-preparation delay or discrepancy.

Points Requiring Attention by the Exporter

• Check the credit expiry, latest shipment date, and presentation period before shipment.
• Review the country risk of the presenting and issuing banks.
• Consider whether confirmation is required.
• Allow sufficient time for document preparation and presentation.
• Review political, economic, and transfer restrictions in the issuing country.
• Screen the parties, goods, vessel, and banks for sanctions exposure.
• Check trade credit insurance country and credit limits.
• Consider an immediate amendment where bank interruption is identified.
• Retain presentation and bank-receipt evidence.

Points Requiring Attention by the Importer

• Confirm that the issuing bank can continue documentary credit operations.
• Arrange an extension or amendment promptly.
• Review cargo-delivery procedures where B/Ls cannot be released by the bank.
• Control storage, demurrage, and detention after cargo arrival.
• Discuss alternative payment arrangements with the exporter.
• Inform the customs broker, freight forwarder, and NVOCC of the document status.
• Address force majeure notice and delivery-date amendment under the sales contract separately.

When Specialist Review Is Required

• The credit expires while bank business is interrupted.
• Specific authorization for post-resumption honour or negotiation is unclear.
• The relationship between sanctions and Article 36 is disputed.
• The confirming or nominated bank’s payment obligation is disputed.
• Presented documents are lost or held during bank closure.
• A stale presentation or another discrepancy exists at the same time.
• The cargo has arrived but the importer cannot obtain the required B/L.
• Political-risk coverage or an insurance notification deadline is involved.
• The sales-contract force majeure issue must be separated from the bank’s documentary credit responsibility.

Depending on the transaction, the issuing bank, confirming bank, nominated bank, trade finance personnel, documentary credit specialist, lawyer, trade credit insurer, and marine insurer should be consulted.

UCP 600 Force Majeure Decision Checklist

Review Stage	Party to Consult	Items to Confirm	Response if a Problem Is Identified
Before contract and L/C issuance	Exporter, importer, bank	Countries, issuing bank, confirmation, sanctions, and country risk	Consider confirmation, credit insurance, or another payment arrangement.
Upon receipt of the credit	Exporter, advising bank	Application of UCP 600, expiry, presentation place, and presentation period	Request an amendment before shipment where the terms are unsuitable.
Before shipment	Exporter, freight forwarder, bank	Shipment date, document-preparation time, presentation margin, and bank status	Reconsider shipment if there is insufficient time.
At presentation	Nominated bank, confirming bank	Acceptance, presentation record, discrepancies, and examination status	Obtain a receipt and confirm an alternative place of presentation.
When force majeure occurs	Relevant banks, exporter, importer	Cause, affected bank, interrupted operations, start date, and expected resumption	Discuss extension and alternative procedures immediately.
Deadline review	Issuing and advising banks	Whether expiry, presentation, or shipment deadlines fall during interruption	Arrange an amendment or reissuance before expiry.
Sanctions review	Bank, legal personnel	Legal prohibition, sanctions clause, parties, goods, vessel, and currency	Assess Article 36 and sanctions law separately.
After bank business resumes	Issuing, confirming, and nominated banks	Validity of the credit, specific authorization, and ability to honour or negotiate	Obtain a written bank response.
At cargo arrival	Importer, bank, NVOCC, freight forwarder	B/L release, D/O, customs clearance, storage, and alternative delivery procedure	Coordinate early to limit additional costs.
Payment delay	Exporter, bank, importer	Bank undertaking, payment route, legal prohibition, and credit expiry	Consider demand, alternative route, contractual recovery, and insurance notice.
Trade credit insurance review	Insurer or relevant insurance institution	Political risk, notice deadline, credit limit, and loss-determination conditions	Give notice of circumstances before formal payment refusal where required.
Dispute	Bank, lawyer, insurer	Credit, presentation record, bank notices, loss, and causation	Preserve evidence and separate the sales-contract and credit issues.

Summary

The UCP 600 force majeure provision is Article 36, which addresses interruption of a bank’s business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, strikes, lockouts, or other causes beyond its control.

Article 36 concerns interruption of bank business in a documentary credit transaction. It does not determine whether the seller or buyer is excused from manufacturing, shipping, delivering, or paying under the sales contract.

Article 36 provides that a bank assumes no liability or responsibility for consequences arising from the interruption of its business caused by an event beyond its control.

Where a credit expires during the interruption, a bank will not, unless specifically authorized, honour or negotiate under that credit after it resumes business.

Force majeure does not automatically extend the credit expiry, presentation period, or latest shipment date. An amendment, reissuance, or alternative presentation method should be considered before expiry.

A confirmed credit mitigates issuing-bank risk but does not eliminate interruption of the confirming bank or a legal prohibition on payment.

The protection provided by Silent Confirmation depends on the separate agreement with the third-party bank.

Financial sanctions may interact with Article 36, but they are not automatically treated as the same issue. Applicable sanctions law, governing law, and transaction facts must be reviewed separately.

Ordinary marine cargo insurance covers physical cargo loss or damage during transit and does not directly insure bank-business interruption or non-payment of sales proceeds. Trade credit insurance should be reviewed separately for non-payment risk.

Effective management of force majeure risk under a documentary credit requires integrated review of the issuing and confirming banks, their countries, the place of presentation, credit expiry, presentation period, payment route, sanctions exposure, country risk, and trade credit insurance.

This article provides general practical information and does not determine or guarantee the application of Article 36, a bank’s payment obligation, the effect of sanctions, contractual liability, or insurance coverage in any individual case. Actual decisions must be based on the credit, UCP 600, interbank communications, the sales contract, governing law, and the applicable insurance policy.