Common discrepancies in documents

1. Drawn incorrectly (i.e. to wrong party)
2. The amount drawn exceeds the credit amount
3. Capacity of signers not designated. (i.e. not an authorized signatory in the bank's record)
4. Tenor not in conformity with Letter of Credit
5. Not marked the wording something like "drawn under Bank XXX Letter of Credit Number XXX..." as required by the credit

1.   Value exceeds credit amount
2.   Amount differs from draft amount
3.   Prices of goods not as shown in the Letter of Credit
4.   Description of goods differs from credit terms
5.   Omission of the price basis and shipment terms (FOB, CIF, C&F etc)
6.   Inclusion of charges not specified in credit
7.   Not certified, notarized or signed as required by credit
8.   Party to be invoiced differs from that mentioned or required in credit
9.   Invoice not issued by beneficiary
10.   The inclusion of debit/credit note which is not specifically allowed

1.   Not presented in full sets when requested.
2.   Alterations not authenticated by an official of the shipping company or their agents
3.   Are not "clean" bills (i.e. carrying remarks that the condition and packing of the goods is defective)
4.   Are not marked "on board" when so required.
5.   "On board" endorsements not signed or initialed by the carrier or agents. "On board" endorsements not dated.
6.   Not blank endorsed if drawn to order.
7.   Do not indicate "freight prepaid" as stipulated in credit (under C&F or CIF contracts)
8.   Are not marked "freight prepaid" when freight charges are included in invoice
9.   Are made out to order when the letter of credit stipulated "direct to consignee" or vice versa.
10.   Are dated later than the latest shipment date specified in the credit
11.   Not presented within 21 days after date of shipment or such lesser time as specified in the credit.
12.   Include goods other that specified
13.   Rate of which freight is calculated, and total amount, not shown when credit required these details.
14.   Shipment has been effected "on deck". Bill of Lading claused "on deck" are not acceptable when "clean on board " bills are required.
15.   Shipment made from a port or to a destination other than that stipulated
16.   Other types of bills of lading presented which are not specifically authorized. e.g. Charter Party B/L.

1.   Air waybill not countersigned by shipped
2.   House air waybill submitted which is not specifically accepted in the credit

1. The amount of cover is insufficient or does not include "risks" mentioned in the credit.
2. Not issued in the currency of the credit
3. Not endorsed and/or signed
4. Certificate or policy bear a date later than date of shipment/despatch
5. Goods are not correctly described
6. Alterations are not correctly described
7. Not in transferable form when required
8. Carrying steamer's name not recorded
9. Does not cover transhipment when bills of lading indicate it will take place
10. When a policy is called for under a credit, a certificate or a broker's cover note is presented. (N.B. However a policy is acceptable when  a certificate is called for. A broker's cover note is not acceptable unless specifically permitted in the credit.

1. The letter of credit has expired
2. Not all documents required by the letter of credit are presented
3. Documents are not presented within 21 days of the date of despatch/shipment or such lesser date as specified in the credit
4. Descriptions, marks and numbers of packages are not consistent in all documents or are not required by the credit
5. Routing displayed are not consistent in all documents.
6. Third party document presented. (For point 5 & 6, this is a common problem for exporters in HK when A China GSP Form A is required in the credit and shipment is from China via HK to overseas destination. The GSP Form A can only be applied by the factory in China. So only a third party GSP Form A can be submitted. To resolve the problem, suggest exporter in HK to request buyer to add a clause in L/C stating that "third party GSP Form A showing routing and invoice number   differing from other documents  acceptable".)