77314982-Lc-Discrepancies.pdf - Minimizing Discrepancies on Your Export Letter of Credit Roland Satchell VP CDCS Jerry Glock VP CDCS April 2010 Strictly

77314982-Lc-Discrepancies.pdf - Minimizing Discrepancies on...

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Minimizing Discrepancies on Your Export Letter of Credit Roland Satchell VP CDCS Jerry Glock VP CDCS Strictly Private and Confidential April 2010
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Topics y Discrepancy—Defined y Document examination Standard UCP 600 Article 14 Timeline—Article 16d y Complying presentation—Article 15 y UCP600 Rules relating to discrepancies Article 16 y Most common discrepancies y How to avoid discrepancies y Available options to presenter when documents are deemed discrepant 1
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Discrepancies y Discrepancy—Defined Documents are considered discrepant when they do not meet the terms and condition of the credit and are not in accordance with examination standards y Standard for document examination Against the Letter of Credit and any amendments issued Against UCP Against standard banking practice—ISBP ICC Pub 681 Against each other—The consistency rule 2
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UCP Article 14 A. A nominated bank acting on its nomination, confirming bank, if any and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation B. A nominated bank acting on its nomination, confirming bank, if any and the issuing bank shall each have a maximum of five banking days, following the day of presentation to determine if a presentation is complying. This period is not curtailed or otherwise affected by the occurrence on or after the date of presentation of any expiry date or last date of presentation C. A presentation including one or more original transport documents subject to articles 19, 20, 21, 22, 23, 24 or 25 must be made by or on behalf of the beneficiary not later than 21 calendar days after the date of shipments described in these rules, but in any event not later then the expiry date of this credit D. Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not to be identical to, but must not conflict with, data in that document, any other stipulated document or the credit E. In documents other than the commercial invoice, the description of the goods ,services or performance, if stated, may be in general terms not conflicting with their description in the credit F. If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the documents to be issued or its data content, banks will accept the document as presented if its contents appear to fulfill the function of the required document and otherwise complies with sub-article 14(d) 3
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