Non-Complying Presentation

Non-Complying Presentation

Documents presented under a letter of credit failing to match the L/C terms and conditions may cause the issuing bank to refuse payment. Examples include incorrect shipment dates, discrepancies between the invoice and packing list, or missing signatures.

Non-conforming documents disrupt the transaction. The issuing bank examines documents meticulously to ensure compliance. Examples include ensuring the Bill of Lading is properly endorsed, the insurance certificate matches the cargo value, or the certificate of origin meets the specified requirements.

Merchants face delays and potential financial loss if documents do not comply. Banks prioritize clear, detailed, and accurate documentation following the letter of credit’s stipulations.