List of Common Discrepancies under Letter of Credit . Discrepancies mean the presentation is inconsistent with the terms and conditions of Letter of credit, and The rule the credit refer to UCP600 or ISBP. The issuing bank of a discrepancy L/C is not obliged to pay its beneficiary and (if it is a confirmed L/C) nor is the confirming bank. Such L/Cs are normally referred back to the buyer or importer (the account party) for instructions. There are common discrepancies the exporter should carefully check. Letter of Credit .............................. 1. Late presentation 2. L/C expired 3. Incorrect number of originals and copies presented 4. Amount overdrawn/ over shipment 5. Partial Shipment effect 6. Requirement doc. not present 7. Shipment effect not as per L/C ie. air shipment i/o road shipment 8. Short shipment (partial shipment prohibited) Drafts or Bill Exchange 1. Not signed by beneficiary 2. Not endorsed as require 3. Incorrect Drawee 4. Amount in words inconsistent with amount in figures 6. Tenor of draft shown incorrectly or not show 7. Amount differs from invoice 8. Credit number, date of credit, Issuing bank name absent or incorrect 9. Draft not drawn on bank or party specify on the credit 10. Time draft ie.30 days after B/L date. The date of B/L not indicate elsewhere in BE 11. Time draft ie.30 days after B/L date. Show incorrect B/L date Commercial Invoice 1. Not issued by BEN 2. Not made out in the name of applicant 3. Not issued in the language of the L/C 4. Titled “proforma”, “provisional” invoice 5. Appearing not to be signed, legalized certified as required by LC 6. Description of goods differs from that of the LC 7. Additional description questioning the condition or value of goods 8. Other information conflicting with that in other docs 9. Value of the invoice and of the draft differ 10. Value of the invoice exceed the available balance of the LC 11. Not show value of goods shipped 12. Currency of the invoice not the same as that of the LC 13. Breakdown of charge not shown as required by LC 14. Not appear to indicate trade term as per L/C 15. Quantity of goods is exceeded/ reduced 16. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. Bill of Lading 1. Late Shipment 2. Ports of loading/dispatch, Port of discharge/final destination differ from the LC 3. Correction/Alteration not authenticate 4. Carrier name not identify elsewhere 5. Signature does not state name and capacity of the party on whose behalf the agent is acting 6. Lack of an original when credit require full set 2/2 7. Does not contain term and condition (short form BL present) 8. Not appear to be issued by party stipulated in LC 9. Tran-shipment made when not allowed expressly 10. On board notation not dated or sign ( B/L indicate received for shipment) 11. On board notation not indicate name of vessel/ place of loading ( pre-carriage field fill with/without place of receipt or intended vessel/port of loading show) 12. Goods shipped on deck when not expressly allowed by LC 13. Showing defective condition of packages/goods 14. Notify party / consignee name and address incorrectly shown 15. Bills of lading made out to order of shipper do not endorsed in blank 16. Contain indication that is subject to charter party 17. No evidence of a sole original ( no number of issuance mentioned ) 18. Lack of an original when credit require full set 2/2 19. Does not contain term and condition (short form BL present) 20. Not appear to be issued by party stipulated in LC 21. Goods is differ from the credit 22. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. Air Transport Document 1. Late Shipment 2. Air port of departure, Air port of destination differ from the LC 3. Correction/Alteration not authenticate 4. Carrier name not identify elsewhere 5. Signature does not state name and capacity of the party on whose behalf the agent is acting 6. Lack of an original 7. Does not contain term and condition 8. Not appear to be issued by party stipulated in LC 9. Tran-shipment made when not allowed expressly 10. Carrier show as IATA airline code ie. BA instead of British Airline 11. Not indicate goods have been accepted for carriage 12. Not to appear to be original for shipper/consignor (LC require full set; it is also satisfied by presentation of Air bill indicate that original for shipper/consignor 13. Notify party / consignee name and address incorrectly shown (AWB may indicate consign to entity instead of to order of entity even when credit so require) 14. Showing defective condition of packages/goods 15. Freight notation not correctly shown ie. Freight Collect i/o Freight prepaid 16. Additional freight cost has been shown while the LC prohibit 17. Goods is differ from the credit 18. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 19. Freight forwarder air waybill presented when not requested by the credit Road Transport document 1. Late Shipment 2. Ports of loading/dispatch, Port of discharge/final destination differ from the LC 3. Correction/Alteration not authenticate 4. Carrier name not identify elsewhere 5. Signature does not state name and capacity of the party on whose behalf the agent is acting 6. Shipping marks, gross, net weights, measurement, container number are in conflict with other documents; 7. Unclean road document 8. Mark different freight requirement 9. Description of goods conflict with other document Freight Forwarder Certificate 1. Request type of freight FCR not present 2. Not evidence that goods received or taken at disposal as expressly stipulated in the credit 3. Ports of loading/dispatch, Port of discharge/final destination differ from the LC 4. Description of goods conflict with other document 5. Shipping marks, gross, net weights, measurement, container number are in conflict with other documents 6. Correction/Alteration not authenticate 7. Late presentation 8. Cargo received date later than LC required 9. Partial shipment affect when credit prohibit. Insurance 1.Not appear to be issued by insurance company or under writer or their agents 2. Signed by agent but not identify name of issuance company or underwriter 3. Not to be countersigned by party required by LC 4. Full set of document not present 5. Showing expiry date for claim 6. Showing issued date/effective date after BL date without additional note that coverage is effective not later than BL date 7.The insurance show cover subject to a franchise or an excess(deductible) while credit require the insurance cover to be irrespective of percentage 8. The issuance does not cover risk as require 9. The insurance show different currency 10.Quantity, weight, description of good not agree with other documents 11. Assure amount less than 110 pct or less than LC requirement 12. Name of insured party is not as per L/C 13. Name of insured party is beneficiary other than issuing bank or applicant (credit silent to insured party 14. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 15. Correction/Alteration not authenticate Certificate of Origin 1. Good differ from the LC 2. The origin of goods not as stipulated in LC 2. Not issued by the party stipulated in LC 3. Legalization or visaed not in terms of LC 4. No signature, seal or stamp or authorized certify body 5. Merchandise description differs from that of credit 6. Use different form of CO ie. Form E i/o Form A 8. Not issued by party as required by the L/C 9. Not mark irrespective as per L/C require 10. Consignee differ from B/L 12. Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper 13. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 14. Quantity, weight, description of good, invoice number and date, shipment date, not agree with other documents 15. Not made out in language required by L/C 16. Correction/Alteration not authenticate 17. Reference Invoice/Packing list fill number and date not properly Packing List 1. Not issued by party as required by the L/C (when credit required) 2. Packing of goods not as required by LC 3. The type of packing indicated is not consistent with that stated on commercial invoice. 4. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents. 5. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 6. Correction/Alteration not authenticate (in case other party issued other than beneficiary 7. Description of goods is in conflict with other document Weight List, Note, Slip or Certificate 1. Not issued by party as required by the L/C 2. Packing of goods not as required by LC 3. The type of packing indicated is not consistent with that stated on commercial invoice. 4. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents. 5. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 6. Correction/Alteration not authenticate (in case other party issued other than beneficiary 7. Description of goods is in conflict with other document 8. Does not contain the declaration required by the credit Quantity Certificate 1. Not issued by party as required by the L/C 2. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents. 3. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 4. Correction/Alteration not authenticate (in case other party issued other than beneficiary 5. Description of goods is in conflict with other document 6. Does not contain the declaration required by the credit 7. Reference Invoice/Packing list fill its number and date not properly 8. Consignee differ from B/L 9.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Inspection Certificate 1. Not issued and signed by the party stipulated in LC 2. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents. 3. Does not cover all points subject to inspection as required by the credit 4. Does not identify the goods inspected as being consistent with those described by commercial invoices and other documents. 5. Indicates defects in goods or packing materials not allowed by credit 6. Consignee differ from B/L 7.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Certificate of Analysis 1. Does not contain the declaration required by the credit 2. Not issued by the party stipulated in LC 3. Certification does not cover all analysis results and is not in agreement with credit stipulations. 4. Does not identify the goods subjected to analysis and/or is inconsistent with those described by commercial invoice and other documents. 5. Parameter test show its result below standard required by the L/C 6. Information required by L/C ie. L/C no., Contract No., CN code, is not properly fill. 7. Correction/Alteration not authenticate (in case other party issued other than beneficiary 8. Consignee differ from B/L 9.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Test Report 1. Does not contain the declaration required by the credit 2. Not issued by the party stipulated in LC 3. Test report does not cover all analysis parameter and/or is not in agreement with credit stipulations. 4. Does not identify the goods subjected to analysis and/or is inconsistent with those described by commercial invoice and other documents. 5. Parameter test show its result below standard required by the L/C 6. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents 7. Information required by L/C ie. L/C no., Contract No. CN code, is not properly filled. 8. Correction/Alteration not authenticate (in case other party issued other than beneficiary 9. Reference Invoice/Packing list fill number and date not properly 10. Date of test later than shipment date 11. Consignee differ from B/L 12.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Quality Certificate 1. Does not contain the declaration required by the credit 2. Not issued by the party stipulated in LC 3. Description of Goods is inconsistent with those described by commercial invoice and other documents. 5. Parameter test show its result below standard required by the L/C (if shown) 6. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents 7. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 8. Correction/Alteration not authenticate (in case other party issued other than beneficiary 9. Consignee differ from B/L 10.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Health Certificate 1. Not issued by the party stipulated in LC 2. Goods not in accordance with the description of goods on the invoice or LC 3. Not executed and manually sighed by a government official of the correct government department e.g. agriculture, fisheries, and food department as called for in the credit 4. Does not certify that the merchandise has been examined and found free of signs or symptoms of infectious or contagious disease and/or fit for human consumption as called for the credit. 5. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents 6. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 7. Consignee differ from B/L 8.Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Fumigation Certificate 1. Not issued by the party stipulated in LC 2. Does not contain the declaration required by the credit 3. Goods not in accordance with the description of goods on the invoice or LC 4. . Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 5. Not show Treatment, Dosage, Chemical as per L/C required 6. Fumigated date later than B/L date 7. Consignee differ from B/L 8. Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper Phytosanitary Certificate 1. Not issued by the party stipulated in LC 2. Does not contain the declaration required by the credit 3. Goods not in accordance with the description of goods on the invoice or LC 4. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. 5. Consignee differ from B/L 6. Consignee not show any entity name in the credit when consignee in B/L issuing bank or shipper 7. Not show Treatment, Duration, Chemical..etc as per L/C required 8. Botanical name of plants not as per L/C required Export License 1. Not issued by the party stipulated in LC 2. Goods not in accordance with the description of goods on the invoice or LC 3. Exports declaration not signed 4. Date and issuance and license number not stated 5. Reference No. and date of commercial invoice and packing list if shown must not conflict with that of commercial invoice and packing list 6. Information required by L/C ie. L/C no., Contract No., CN code, is not properly filled. Beneficiary Certificate 1. Not signed by Beneficiary or its agent 2. Data required by the credit not fulfill 3. Goods not in accordance with the description of goods on the invoice or LC (If shown) 4. Marks and numbers of packages, container number, weight, dimensions and quantities listed not in accordance with other documents (If show)
Posted on: Sat, 18 Jan 2014 07:44:49 +0000
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