Common discrepancies on invoice under Letter of credit

In the world of international trade, letters of credit play a crucial role in ensuring smooth transactions between exporters and importers. One important document that is required under a letter of credit is the invoice. However, there are several common discrepancies that can arise when presenting an invoice under a letter of credit.

The discrepancies have been examined by the bank and most often they are:

- Invoice value exceeds the amount letter of credit

- Omission Incoterm or its source

- Invoice does not appear to be issued by the beneficiary

- Invoice does not make out in the name of the applicant

- Amount differs from that draft (if draft requires in the L/C)

- Description of goods or service does not correspondent with the description stated in the L/C

- Quantity of goods does not state as per description stated in the credit

- Invoice shows different shipment routing

- Invoice does not contain a declaration as per LC

- Invoice shows shipment of goods not required by LC

- Invoice does not show discount or deduction

- Invoice does not sign when requested in the LC

- Invoice indicates over shipment or short shipment

- Data invoice conflicts with other documents required by LC

- Invoice states a different unit price

To summarize, when submitting an invoice for payment using a letter of credit, exporters must thoroughly review it to ensure that it meets the terms of the letter of credit, ICC UCP600, and standard international banking practices.

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