A discrepancy is any way in which documents presented under a letter of credit fail to comply with its terms, with UCP 600 or with each other, such as a late shipment date or a missing signature. The bank may refuse the documents with a single notice listing all discrepancies within five banking days, or ask the applicant to waive them.
Letter of credit (documentary credit)A letter of credit, also called a documentary credit, is a bank's undertaking to pay a seller a stated amount if the seller presents documents that comply with the credit's terms. It replaces the buyer's credit risk with a bank's and is usually subject to the ICC rules UCP 600. A confirmed credit adds a second bank's undertaking.
UCP 600 (Uniform Customs and Practice for Documentary Credits)UCP 600 is the set of 39 articles published by the International Chamber of Commerce that governs most letters of credit worldwide, in use since 1 July 2007. It defines the duties of the parties, the standard for examining documents, the maximum five banking days for examination and the rules for refusing discrepant documents. The eUCP supplement covers electronic presentations.
Bill of ladingA bill of lading is the document a carrier issues for goods shipped by sea. It is a receipt for the goods, evidence of the contract of carriage and, when negotiable, a document of title, so whoever holds it can claim the goods. Banks often require a full set of original bills under letters of credit and documentary collections.
Letter of credit (documentary credit)A letter of credit, also called a documentary credit, is a bank's undertaking to pay a seller a stated amount if the seller presents documents that comply with the credit's terms. It replaces the buyer's credit risk with a bank's and is usually subject to the ICC rules UCP 600. A confirmed credit adds a second bank's undertaking.
UCP 600 (Uniform Customs and Practice for Documentary Credits)UCP 600 is the set of 39 articles published by the International Chamber of Commerce that governs most letters of credit worldwide, in use since 1 July 2007. It defines the duties of the parties, the standard for examining documents, the maximum five banking days for examination and the rules for refusing discrepant documents. The eUCP supplement covers electronic presentations.