Common Bill of Lading Discrepancies Under a Letter of Credit (LC)

Common Bill of Lading Discrepancies

Under a Letter of Credit (LC)

Up to 60-70% of documents are found discrepant on first presentation! Understanding common B/L pitfalls is key to smoother trade finance. Data in documents must not conflict with other documents or the LC (UCP 600 Art. 14(d)).

Late Presentation / Shipment

Docs presented >21 days post-shipment or after LC expiry. B/L on-board date might be too old vs. presentation date.

Tip: Monitor presentation deadlines meticulously. Dispatch documents promptly.

Port Inconsistencies

Port of Loading/Discharge on B/L differs from LC. E.g., "St. Petersburg, Ru." vs. "St. Petersburg, Russia". Conflicts with ports on other documents.

Tip: Ensure port names match the LC *exactly* across all documents.

Goods Description Mismatch

B/L goods description can be general but must not conflict with LC. Commercial Invoice requires description to correspond with LC.

Tip: While B/L can be general, avoid contradictions with the LC's detailed description.

Quantity/Weight Conflicts

Quantity or gross weight on B/L differs from invoice, packing list, or draft survey report.

Tip: Triple-check all quantity and weight figures for consistency across documents.

Incorrect Packing Details

Packing description on B/L differs from LC stipulation. (Note: UCP doesn't demand identical wording if meaning is consistent and non-conflicting).

Tip: Adhere to LC packing requirements. If unsure about phrasing, clarify.

Signatures & Authentication

Unsigned B/Ls or copies. Charter Party B/L signature not compliant with UCP 22(a). On-board notations or alterations not authenticated.

Tip: Ensure all B/Ls are properly signed by authorized parties and any changes authenticated.

Originals vs. Copies

Presenting B/Ls marked "duplicate" or "triplicate" when originals are required. Only a partial set of original B/Ls presented (e.g., 1/3).

Tip: Always submit the full set of originals as stipulated in the LC.

Conflicting Data

Data in B/L conflicts with invoice, packing list, etc., regarding shipment, type, quality, description, or weight. Seal numbers not corresponding (e.g., APL9072496 vs. 9072496 if not clearly same).

Tip: Cross-verify ALL documents for consistency before presentation.

Missing Transport Documents

The Bill of Lading itself, or other required transport documents evidencing movement of goods, are not presented.

Tip: Ensure all documents required by the LC are included in the presentation.

Strive for Zero Discrepancies!

Thoroughly check all documents against the Letter of Credit and UCP 600 principles *before* presentation. When in doubt, seek clarification from the bank. Early checks save time and money!