Purpose
Apply a disciplined, document-based examination process while preserving timelines, evidence and independent review.
Standards context
Rules and transaction hierarchy
- UCP 600 governs when expressly incorporated by the credit
- ISBP 821 explains how documentary-credit practices are applied in examination
- The precise credit text and any permitted modifications remain controlling
Responsibilities
Parties and roles
Presenting party
Submits the documents at the place and within the time stated in the credit.
Nominated or confirming bank
May examine and act according to its role, undertaking and agreement.
Issuing bank
Determines whether a presentation is complying and handles honour or refusal.
Applicant
May be asked whether it will waive discrepancies, without replacing the bank’s examination duty.
Operational sequence
Workflow and control points
Log the presentation
Record receipt date, time, place, presenter, document inventory and available amount.
Examine against the credit
Compare each stipulated document and the presentation as a whole with the credit and applicable practice.
Record discrepancies precisely
Describe each identified inconsistency in clear documentary terms.
Decide honour or refusal
Follow the bank’s authority, waiver and notice process within the applicable timeline.
Retain the examination record
Preserve documents, checklist, approvals, notices and final disposition.
Daily processing
Operations checklist
- Document inventory and safekeeping
- Credit and rules-based examination
- Discrepancy classification
- Applicant waiver workflow
- Notice and document disposition
- Quality assurance and audit trail
Exception handling
Common breaks and response
Documents arrive near expiry or the presentation deadline
Controlled response: Record exact receipt details immediately and apply the credit and incorporated rules without informal extensions.
Applicant wants goods released before the documentary decision
Controlled response: Separate commercial urgency from the bank’s examination, authority and indemnity procedures.
Different examiners describe the same issue differently
Controlled response: Use standardized discrepancy language, rule context and a documented quality-review process.
Practical context
Scenario: invoice and transport-document mismatch
A presentation includes an invoice and transport document whose descriptions are not clearly consistent with the credit. The examiner records the exact documentary facts, completes the full review, obtains independent confirmation and follows the controlled honour or refusal process.
Knowledge check
Check your understanding
Does an applicant waiver automatically make a discrepant presentation complying?Show answerHide answer
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