General Principles:
A21: How to handle language in documents
It should be noted that parties involved in a documentary credit must be very clear when establishing or agreeing the language requirements for the stipulated documents. Failure to indicate a required language allows for documents to be issued in any language(s).
A22: Handling of mathematical calculations
An area that has caused particular problems in the past has been with regard to the handling of mathematical calculations - whether this be in respect of individual quantities or weights of goods, or a calculation such as unit price x the quantity or weight of one or more type of goods.
It is important that all parties involved in documentary credits are aware of the practice to be applied. Beneficiaries, in particular, need to determine whether extensive data is required or not, when the terms and conditions of the documentary credit do not impose a requirement for detailed breakdowns of weights, unit prices, quantities, etc.
A23: Documents with misspellings and typing errors
Documentary credit practitioners will be familiar with the fact that misspellings and typing errors can cause all sorts of problems and, in a worst-case scenario, will often lead to a refusal of documents.
However, not all misspellings and typing errors make a document discrepant if they do not affect the meaning or intent of a word or sentence.
A24/25: Treatment of multiple pages, attachments and riders
When a document consists of more than one page a document examiner is required to be able to determine that the pages are part of the same document and how many pages represent that document.
When pages are physically bound together, sequentially numbered or contain internal cross references they are to be examined as one document.
A26: Handling and examination of non-documentary conditions
It is often the case that a documentary credit will be issued with a term or condition that does not stipulate a requirement for the presentation of a specific document evidencing compliance with that condition.
In such cases, no document is required to be presented by the beneficiary and the beneficiary is not required to insert data evidencing compliance with such term or condition on any other stipulated document. However, if it does, such data must not be in conflict with the non-documentary condition otherwise the document(s) will be discrepant under UCP 600 sub-article 14 (d).
A27: Determination of an original document
As most practitioners are aware, the subject of originals and copies has been one of major contention for many years. This is especially so today, with advancements in technology making it almost impossible to determine the originality or otherwise of a document. The document must appear to not have been completely reproduced.
A28: Marking to indicate an original document
There are a number of ways for a document examiner to identify documents that have been issued in more than one original, so as to differentiate them from copies.
Although UCP 600 sub-article 17 (a) states that at least one of the stipulated documents must be an original, an applicant should consider the relevance of requiring an original of every document, and issuing bank's should do likewise when structuring the content of their application forms.
A29: Interpreting documentary credit requirements for originals and copies
Number of originals to be presented = at least the number required by the credit or the rules
Transport or insurance documents = the number of originals stated on the document. If an insurance document, the number presented or shown
2/3 Original Bills of Lading = if no disposal instructions for remaining bill of lading, 3/3 originals may also be presented
"Invoice", "One Invoice", "Invoice in 1 copy", or "Invoice - 1 copy" = one original invoice
"Invoice in 4 copies" or "Invoice in 4 fold" = at least one original invoice and any remaining number as copies
"Photocopy of invoice" or "copy of invoice" = either a photocopy, copy or, when not prohibited, an original invoice
"Photocopy of a signed invoice" = either a photocopy or copy of the original invoice that was apparently signed or, when not prohibited, a signed original invoice
A30: Prohibition and disposal of original documents
A documentary requirement stating "copy of invoice - original not acceptable instead of a copy" or similar wording means that only a copy or photocopy will be compliant under the documentary credit.
For more detailed training material on this subject, refer to the ISBP modules at www.tradefinance.training