ICC, the Middle East tensions… and the quiet reminder that “the rules are still the rules”

Over the past few days, many of us in trade finance have probably come across the latest ICC note on the application of its rules in light of the ongoing Middle East tensions.

Reading it, Mr. Old Man had a familiar feeling.
Nothing dramatic. No sweeping changes.
And yet, very much worth a careful read.

Because in times when the market feels most unsettled, what people need most… is stability.

Here is a brief takeaway for those who may not have time to go through the full text:

1. The rules remain unchanged.
   UCP 600, URDG 758, URC 522 (and their electronic supplements) continue to apply as they stand. External events, no matter how serious, do not rewrite the rulebook.
2. The impact is operational, not legal.
   The real challenges lie in practice:

• sanctions exposure
• insurance complications
• changes in shipping routes
• delays in document handling and delivery

In short, the friction is in execution, not in the governing principles.

3. The existing rules already address many risks.

• Loss or delay of documents
  Provisions such as UCP 600 Article 35 already protect banks against consequences arising from transmission issues beyond their control.
• Force majeure
  This applies only when a bank is prevented from operating due to events beyond its control.
  It does not apply simply because the broader environment is difficult, as long as the bank remains open and functioning.

4. Flexibility is possible at the transaction level.
   Where practical difficulties arise, parties may:

• agree on alternative presentation methods
• accept scanned or electronic documents
• adopt pragmatic solutions suited to the circumstances

5. Electronic presentation becomes more relevant.
   The ICC gently points toward:

• eUCP / eURC for electronic records
• URDG provisions that already accommodate electronic documents

This is not just a temporary workaround—it reflects a longer-term direction.

6. The answer is adaptation, not rewriting the rules.
   If disruptions escalate further (for example, courier breakdowns or closure of presentation points), additional guidance may follow.

For now, the message is simple:

Apply ICC rules as usual.

A final thought, in Mr. Old Man’s way…

In this line of work, every major disruption—be it a pandemic, a volcanic eruption, or geopolitical conflict—tends to bring back the same question:

“Do the rules change?”

And once again, the answer is: No.

But that “no” is not because the system is rigid.
It is because it was designed to withstand situations like this.

The rules remain.
What changes is how well we understand them… and how confidently we apply them.

And sometimes, that makes all the difference.

____

Mr. Old Man

• Original text of Application of ICC trade finance rules in the context of the Middle East conflict: