ISBP 745: discrepancies bankers still mis-call
Which edition
ISBP 745, published in 2013, is the ICC practice publication written for the examination of documents under credits that incorporate UCP 600. ISBP 821, published in 2023, is a later publication. A credit that is subject to UCP 600 and does not name an ISBP edition does not, by that silence, select 821. This portal’s guides use 745 for that practice and do not treat 821 passages as the answer to a 745 question. If the credit expressly incorporates 821, examine under 821. Do not mix the paragraphs.
Spelling
Paragraph A23 is the typing-error rule. A misspelling or typing error that does not affect the meaning of a word, or the sentence in which it occurs, does not make a document discrepant. A misspelling that changes the goods, the port, the name of the beneficiary, or a figure is not protected. The test is meaning, not the number of letters. Record the word and the sentence in the checker’s note so the Article 16 notice, if one is needed, states a real conflict.
Invoice title and drafts
Paragraph C1 deals with the title of an invoice. A credit that requires an invoice, without further description, is satisfied by a commercial invoice, a customs invoice, a tax invoice, a final invoice, a consular invoice, or another invoice of that kind. It need not be titled “commercial invoice”. A document titled provisional or pro-forma is not an acceptable invoice unless the credit allows it. When the credit requires a commercial invoice, a document titled “invoice” can still be acceptable under that paragraph. Drafts, where the credit calls for one, are drawn on the drawee the credit names, for the tenor stated, with words and figures that agree, for the amount demanded, and not for more than the credit allows.
Certificate of origin
Paragraph L3: if the credit requires a certificate of origin and does not name the issuer, any party, including the beneficiary, may issue it. If the credit names a chamber, a consulate, or another issuer, that name controls. A beneficiary certificate is not a failure merely because a chamber usually issues origins in that trade. It is a failure if the credit asked for the chamber.
Using 745 in a refusal
ISBP does not replace UCP 600. It explains practice for applying UCP 600. A refusal notice under Article 16 should cite the credit term and the UCP article. It may explain the practice point, but it should not refuse “under ISBP” as if ISBP were the undertaking. And it should not attach an ISBP 821 extract to a credit that never named 821.
Source
ICC, ISBP 745 (2013), including paragraphs A23, C1 and L3, and the draft paragraphs. Summary only. ISBP 821 (2023) is a later publication and is not used here as a substitute. Open the cited source.
Frequently asked questions
Does a typing error always make a document discrepant?
Under ISBP 745 paragraph A23, a misspelling or typing error that does not affect the meaning of the word or the sentence does not make the document discrepant.
Must an invoice be titled “commercial invoice”?
ISBP 745 paragraph C1: a credit that asks for an invoice, without more, is satisfied by a commercial invoice or another invoice of that kind. The document need not be titled “commercial invoice”. A document titled provisional or pro-forma is not acceptable unless the credit allows it.
Who may issue a certificate of origin if the credit is silent?
ISBP 745 paragraph L3: if the credit does not name the issuer, any party, including the beneficiary, may issue it. If the credit names the issuer, that requirement controls.