Lesson check0 / 2 answered · 0 correct
Check 1
Is a missing required document a possible discrepancy?
Check 2
Should the beneficiary intentionally rely on future waivers when drafting the LC?
Discrepancies and Refusal
Learn what can go wrong even when the trade is real.
What is a discrepancy?
A discrepancy is a problem or difference in the presented documents when compared with the credit and applicable rules.
It can be small or serious.
Common learning examples
Late shipment.
Late presentation.
Missing required document.
Wrong amount or quantity outside allowed tolerance.
Transport document not in the required form.
A certificate missing required wording.
Why small wording matters
Documentary credits are document-based.
A real shipment can still face a documentary problem if the required presentation does not comply.
What happens next
A bank may refuse a discrepant presentation following the applicable rules.
A waiver may sometimes be sought from the applicant, but a beneficiary should not rely on a future waiver when drafting the LC.
Remember thisDo not plan to fix a bad LC with a waiver later. Fix the wording before issuance when possible.
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