What If the Buyer Refuses to Waive Letter of Credit Discrepancies?
The exporter's options when the buyer will not waive discrepancies in a Letter of Credit presentation.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
If the buyer refuses to waive discrepancies, the bank is not obliged to pay under the Letter of Credit. The exporter can re-present corrected documents if the presentation deadline and expiry still allow, negotiate directly with the buyer, ask the bank to return the documents, or pursue its claim under the sales contract. The goods may be stuck at the destination meanwhile.
| Bank obligation | None for a discrepant presentation |
|---|---|
| Documents | Held or returned per the refusal notice |
| Fallback | Sales contract claim |
Options
- Correct and re-present within deadlines.
- Negotiate a price or terms adjustment with the buyer.
- Ask for documents to be returned and find another buyer.
- Use legal remedies under the sales contract.
Prevention
- Check documents before presenting.
- Present early so there is time to correct.
Sources
General guidance, not legal advice. Your bank examines documents independently.
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