Trade Finance & Supply Chain
Export LC Documents: Discrepancy Prevention Checklist
Begin document planning when the credit arrives. Waiting until shipment leaves little time to correct a requirement that the carrier, insurer or certificate issuer cannot meet.
Answer first
Read the credit and amendments as one presentation instruction. Build a document matrix, allocate each requirement to an issuer and test whether the planned shipment can produce the requested evidence before dispatch.
Separate the contract from the presentation
The sales contract sets commercial obligations; the credit sets the documentary conditions on which the bank examines a presentation. A commercially successful shipment can still produce a discrepant presentation. Conversely, a documentary examination is not a physical inspection or a guarantee of goods quality.
Use an agreed credit version and amendment register. Record which amendment changes quantity, shipment date, expiry, transport evidence or insurance. A draft invoice checked against an obsolete credit can create an avoidable mismatch throughout the file.
Build a document control matrix
| Document | Pre-shipment check | Responsible party |
|---|---|---|
| Commercial invoice | Parties, description, currency, value and credit-specific statements | Exporter |
| Transport document | Requested type, issuer/signing capacity, routing and shipment evidence | Exporter with carrier / forwarder |
| Insurance document | Coverage, effective date, currency, journey and execution | Exporter with insurer where required |
| Other certificates | Required issuer, content and availability before presentation | Named issuer and exporter |
Insurance: use Article 28, not a transport article
UCP 600 Article 28 addresses insurance documents and coverage. Review signing authority, required originals, timing of cover, insured currency and value, journey and risks against the credit and applicable rules. A cover note is not an acceptable substitute under that article. Apply the relevant ISBP guidance alongside the credit; do not turn a short checklist into a substitute for the full examination standard.
Where the credit is unclear about an insurance requirement, seek clarification before issuance of the insurance document. The insurer’s commercial coverage and the bank’s documentary examination are connected but distinct questions.
Freight forwarder documents: examine the capacity
The words “freight forwarder” do not, by themselves, answer whether a presented transport document meets a credit. Determine the document type, the applicable UCP transport article and the capacity in which the document is signed. Review any express credit requirement as well. Ask for a draft showing the issuer and signature wording before shipment rather than relying on a trade name or logo.
Illustrative prevention case
An exporter plans to present a transport document and insurance certificate but discovers that the insurance evidence starts after the shipment event. The operational response is to investigate the actual cover and documentary position immediately, not change dates to make the file appear compliant. If the required evidence cannot be produced, discuss the available amendment or discrepancy-handling path with the bank.
Presentation handover
- Check the final credit, amendments, expiry/place and presentation timing.
- Reconcile the full set and required originals.
- Record unresolved discrepancies accurately.
- Track delivery to the presenting bank and preserve the examination trail.
- Do not assume applicant acceptance alone guarantees payment by every relevant bank.
Use the document alignment lookup to organize preparation, then examine the actual documents under the credit and applicable rules.
Sources and further examination
These are original educational explanations. ICC rules apply according to incorporation in the instrument; use the applicable authorized publication for detailed examination. Bangladesh requirements must be read with effective amendments and transaction-specific conditions.