How to Review a Draft Letter of Credit Before Issuance
What exporters and importers should check in a draft Letter of Credit before the bank issues it.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
Reviewing a draft Letter of Credit before issuance is the cheapest moment to fix problems: changes cost nothing yet, whereas amendments after issuance take time, may carry fees and need every party's agreement. Check that the terms match the sales contract and that every document, date and condition can realistically be met.
| Best moment | Before issuance — no amendment needed |
|---|---|
| Compare against | Sales contract / proforma invoice |
| Key fields | 31D, 32B, 39A, 44C, 45A, 46A, 47A, 48 |
What to check
- Beneficiary name and address exactly as registered.
- Amount, currency and tolerance (32B, 39A).
- Latest shipment, presentation period and expiry (44C, 48, 31D).
- Ports, partial shipments and transhipment (43P, 43T, 44E, 44F).
- Goods description matches the contract (45A).
- Every document in 46A can be obtained in time.
- No condition in 47A depends only on the buyer.
Red flags
- Documents the buyer must issue or sign.
- Expiry in the buyer's country only.
- Presentation period too short for the route.
- Vague conditions without a document to show compliance.
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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