UCP 600 Article 16: Discrepancy Notices and Waivers
A plain-language guide to UCP 600 Article 16 on discrepant documents, waivers and refusal notices.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
UCP 600 Article 16 sets what a bank may and must do when documents do not comply: it may refuse; the issuing bank may approach the applicant for a waiver without extending the five-day period; and if it refuses, it must send a single notice listing all discrepancies and the status of the documents by the fifth banking day. A bank that fails to do so cannot claim the documents are non-compliant.
| 16(a) | Bank may refuse |
|---|---|
| 16(b) | Issuing bank may seek waiver |
| 16(c)–(d) | Single notice, fifth banking day |
| 16(f) | Precluded if not followed |
Status options in the notice
- Holding documents pending further instructions.
- Holding pending applicant's waiver.
- Returning documents.
- Acting under earlier instructions from the presenter.
Why it matters to exporters
- A defective notice can strengthen your position.
- Know which option the bank chose before acting.
Sources
General guidance, not legal advice. Your bank examines documents independently.
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