LC Discrepancy Auto-Scanner
Identify discrepancies in your trade documents before bank presentation.
UCP 600 Compliance: Automated LC Audit
The Letter of Credit (LC) discrepancy scanner automates the verification of trade documents against the underlying LC narrative. By leveraging advanced AI parsing and a deterministic compliance engine, it identifies inconsistencies that typically lead to bank rejections. The tool covers critical UCP 600 articles, including shipment dates, quantity tolerances, and document signatures.
An LC discrepancy is any mismatch between a presented document and the terms of the Letter of Credit, UCP 600, or ISBP 821 standards. Banks examine documents on their face within five banking days (UCP 600 Article 14b); a single discrepancy lets the issuing bank refuse payment, so the presentation must be corrected or sent on approval basis.
Most common discrepancies
- Late shipment or late presentation beyond the 21-day default period (Article 14c).
- Expired credit at the place of presentation.
- Goods description on the invoice not corresponding with the LC (Article 18c).
- Bill of Lading missing an on board notation, signature capacity, or full set of originals (Article 20).
- Insurance value below 110 percent of CIF or dated after shipment (Article 28).
- Amount, quantity, or unit price outside the permitted tolerance (Article 30).
- Inconsistent data between invoice, transport document, and packing list (Article 14d).
Roughly 60 to 70 percent of first presentations under documentary credits are rejected for discrepancies, most of them clerical and avoidable with a pre-presentation audit.
Numerical Example: Quantity Tolerance Check
Verification of UCP 600 Article 30(b) for a bulk shipment where 'about' is used.
How it works
- Step 1: Upload your MT700 LC document (PDF or Text).
- Step 2: Select and upload the documents you want to audit.
- Step 3: The system automatically extracts data and runs a background compliance audit against UCP 600 standards.
Key Compliance Areas
- Article 18: Commercial Invoice data matching.
- Article 20: Bill of Lading "On Board" notations.
- Article 28: Insurance coverage and dates.
- Article 30: Amount, quantity and unit price tolerances.