The 45 UCP 600 and ISBP 821 checks we run

Every check paper-chain.io runs on a Letter of Credit presentation, with the UCP 600 article or ISBP 821 practice it comes from. Findings are graded blocker, major, minor or advisory.

Credit structure and undertaking — UCP 600 Articles 1 to 16

Examination rules — UCP 600 Articles 14 and 17

Commercial documents

Transport documents — UCP 600 Articles 19 to 25

Amounts, quantities and drawings — UCP 600 Articles 29 to 32

Disclaimers, transfer and assignment — UCP 600 Articles 34 to 39

ISBP 821 practice and cross-document consistency

Common questions

What counts as a discrepancy under UCP 600?

A discrepancy is any point where the documents presented do not comply with the terms of the credit, the applicable UCP 600 articles, or international standard banking practice. Under Article 14, banks examine documents on their face to decide whether they appear to constitute a complying presentation, and data in a document must not conflict with data in any other stipulated document or with the credit itself. Common examples are an invoice amount exceeding the credit amount, a goods description that does not correspond to the credit, a presentation made after the 21-day period in Article 14(c), a missing on-board notation, and inconsistent dates or currencies across documents.

What is ISBP 821?

ISBP 821 is the International Chamber of Commerce publication International Standard Banking Practice for the Examination of Documents under UCP 600. It does not replace UCP 600; it explains how the articles are applied in day-to-day document examination — how goods descriptions are read, how dates and signatures are treated, and how consignee and notify details on transport documents are checked.

Why do banks reject letters of credit?

Banks do not reject the credit itself; they refuse the presentation of documents made under it. The refusal is for discrepancies found on examination — documents that conflict with each other or with the credit, documents presented after the expiry or presentation period, invoices drawn for more than the credit permits, transport documents missing required notations, or insurance cover below the required percentage. Industry estimates commonly put the first-presentation discrepancy rate in the region of 70 to 80 percent, which is why a pre-submission check matters.

How are findings graded?

Each finding is graded blocker (a discrepancy a bank would be entitled to refuse on), major (a material inconsistency that commonly draws a refusal notice under Article 16), minor (a smaller defect that may or may not be raised), or advisory (not a discrepancy, but worth knowing before presenting).