The five letter-of-credit discrepancies we see most often
Banks reject a large share of first presentations. Almost all of it is avoidable, and almost none of it is about the goods.
Late presentation
Documents must be presented within the period stated in the credit and before expiry. If no period is stated, within 21 days of shipment under UCP 600. Miss it and the credit is worthless no matter how good the cargo is. Work backwards from the expiry date when you plan the shipment, not forwards from the ship date.
Description of goods not matching
The commercial invoice description must correspond to the credit description. Not "mean the same thing", correspond. Copy the wording from the credit exactly, including any spelling error it contains, and put your own preferred description elsewhere in the document if you need it.
Inconsistent data across documents
Marks, numbers, weights, quantities and the vessel name must agree across the invoice, packing list, bill of lading and certificates. A packing list showing a gross weight the bill of lading contradicts is a discrepancy, even though nothing about the shipment is actually wrong.
Missing or incorrectly worded certificates
If the credit calls for a beneficiary certificate in specific wording, that exact wording must appear. Certificates of origin, inspection certificates and insurance documents are rejected constantly for wording that is substantively correct but not literally what was asked for.
Insurance not meeting the terms
Under CIF and CIP the insurance document must cover at least 110 percent of the invoice value, be in the credit currency, and be dated no later than the shipment date. A policy issued the day after loading is a discrepancy.
The fix is to read the credit before shipping
Every one of these is visible on the day the credit is advised. Read it against what you can actually produce, request amendments while the goods are still in production, and check the presentation internally before it goes to the bank.
Next step
Send us a specification. Get a real quotation.
Drawings, a bill of quantities, a line list or a written brief, whatever you have. We come back with a costed, line-by-line offer, and tell you plainly if anything in it will not work.