Common Letter of Credit Discrepancies and How to Avoid Them
The discrepancies banks find most often in Letter of Credit presentations — late shipment, late presentation, conflicting data, missing documents — and how to catch them first.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
A Letter of Credit discrepancy is any way the presented documents fail to comply with the credit's terms, the applicable UCP 600 rules or international standard banking practice. The most common are late shipment, late presentation, documents missing or in the wrong number of originals, data that conflicts between documents, invoice amounts outside tolerance, and goods descriptions on the invoice that don't correspond with the credit.
| Rulebook | UCP 600 (most credits) and ISBP 821 |
|---|---|
| Bank examination time | Up to five banking days after presentation (UCP 600 Art. 14(b)) |
| Default presentation period | 21 calendar days after shipment, and never after expiry (Art. 14(c)) |
| Test for data | Need not be identical, must not conflict (Art. 14(d)) |
1. Late shipment
The shipment date shown on the transport document — for a bill of lading usually the on-board date — is later than the latest shipment date in field 44C of the MT700. Banks cannot accept it. The fix is an amendment before presentation or a waiver request through the applicant.
2. Late presentation or expired credit
Documents reach the nominated bank after the presentation period (field 48, or 21 days by default) or after the expiry date in field 31D. Plan backwards from the earliest of the two dates.
3. Missing documents or originals
A document listed in field 46A is not presented, or fewer originals are presented than requested. Read 46A line by line and count originals and copies for each item.
4. Conflicting data between documents
UCP 600 does not require identical wording, but data in one document must not conflict with another document or with the credit. Typical conflicts: different weights on the packing list and bill of lading, different ports, different marks and numbers.
5. Invoice problems
- Invoice not issued by the beneficiary or not made out to the applicant (Art. 18).
- Amount above the credit amount, or outside the tolerance in field 39A.
- Goods description that does not correspond with field 45A.
- Currency different from the credit.
6. Conditions in field 47A overlooked
Additional conditions often add requirements to several documents at once — for example the credit number on every document, or a specific shipping-line statement. They are a frequent source of avoidable discrepancies.
How to catch them before your bank does
- Work from the credit as issued plus every amendment you have accepted.
- Build a document checklist from 46A and 47A before production starts.
- Track three dates: latest shipment, presentation deadline, expiry.
- Compare amounts, quantities, ports, dates and parties across every document.
- Leave time to correct documents before the deadline.
Worked example (fictional)
A credit allows shipment until 15 March and presentation within 21 days of shipment, expiring 31 March. Goods ship on board on 14 March. The presentation deadline is the earlier of 4 April (14 March + 21 days) and 31 March (expiry) — so 31 March. Documents presented on 2 April would be late even though they are inside 21 days.
Questions
Does a spelling difference always cause a discrepancy?
Not automatically. The question under UCP 600 Article 14(d) is whether the data conflicts. Some typing errors that don't change meaning are not treated as discrepancies under ISBP practice; others are. When in doubt, correct the document.
What happens when a bank finds a discrepancy?
The bank may refuse the presentation by sending a single notice listing every discrepancy (UCP 600 Art. 16). It may also approach the applicant for a waiver. Banks usually charge a discrepancy fee.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- ICC Academy — avoiding Letter of Credit discrepancies
General guidance, not legal advice. Your bank examines documents independently.
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