What are the Common Discrepancies among Letter Of Credit?


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Common Discrepancies among Letter Of Credit
 
Following are the discrepancies normally observed in export documents and the exporters are advised to keep them in view while tendering the documents to the negotiating bank-
  • Credit Expired
  • Late shipment
  • Claused bill of lading
  • Presented after permitted time from date of issue of shipping documents
  • Short shipment
  • Credit amount exceed
  • Under insured
  • Description of goods on invoice differ from that of credit
  • Mark and numbers differ between documents
  • Goods shipped and decked
  • Bill of lading , insurance document and bill of exchange not endorsed properly
  • Absence of documents called for under credit
  • Insurance certificate submitted instead of policy
  • Weight shown in various documents differ
  • Class of bill of lading not acceptable – charetr party or house bill of lading
  • Insurance cover expressed in currency other than  that of credit
  • Absence of signature where required in documents
  • Bill of lading drawn on wrong parties
  • Bill of exchange not drawn as per tenor stated in credit
  • Insurance risk covered not as specified in credit
  • Insurance not effective from the date of shipping documents
  • Absence of “freight paid ” statement on bill of lading where credit covers C&F or CIF shipment
  • Bill of lading does not bear “Shipped on Board” stamp
  • Amount shown on invoice and bill of exchange differ
  • Shipment made between port other than those stated in credit
  • Transshipment /part shipment effected when prohibited by credit.
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We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

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