LC Discrepancy Auto-Scanner
Identify discrepancies in your trade documents before bank presentation.
The LC Discrepancy Auto-Scanner is a free SSLT Global tool that cross-checks your documentary credit text and uploaded documents against UCP 600 and ISBP 821. It examines the commercial invoice, packing list, certificate of origin, bill of lading, inspection certificate and insurance document, combining AI extraction with deterministic UCP 600 checks. Results are decision support and do not replace the issuing bank's examination. A free account is required; no uploaded file is stored after your session.
UCP 600 Compliance: Automated LC Audit
The Letter of Credit (LC) discrepancy scanner compares an LC and its amendments with six supported document types: commercial invoice, packing list, certificate of origin, bill of lading, inspection certificate, and insurance document. AI-assisted extraction feeds a rule engine that flags possible conflicts and fields requiring human verification before bank presentation.
An LC discrepancy is a conflict between a presented document and the credit terms or applicable UCP 600 and international standard banking practice. A nominated bank, confirming bank, or issuing bank has a maximum of five banking days following presentation to determine whether the presentation complies (UCP 600 Article 14(b)). Review the original documents and amended credit terms before acting on a scanner finding.
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).
Banks apply the LC terms and applicable banking practice to the documents on their face. Rejection rates vary by bank, market, document quality, and transaction type, so this tool reports document evidence and verification status rather than promising a fixed error rate.
Numerical Example: Quantity Tolerance Check
Verification of UCP 600 Article 30(a) for a bulk shipment where 'about' is used. Without 'about', Art. 30(b) allows only ±5% (950 to 1,050 MT) and 1,085 MT would be discrepant.
Ten most common documentary discrepancies UCP 600 examination catches
| Discrepancy | UCP 600 reference | Why it is refused |
|---|---|---|
| Late shipment | Article 14(c) | The transport document shows a shipment date after the latest shipment date in the credit. |
| Credit expired | Article 6 | Documents are presented after the expiry date or at a place other than the stated place of presentation. |
| Goods description on the invoice does not correspond with the credit | Article 18(c) | The invoice description must mirror the credit; other documents may use general terms but must not conflict. |
| Insurance covering the wrong risks or currency | Article 28 | Cover must match the risks and currency required by the credit, for at least 110 percent of the CIF or CIP value. |
| Insurance dated after shipment | Article 28(e) | Cover must be effective no later than the shipment date shown on the transport document. |
| Bill of lading missing the on-board notation | Article 20(a)(ii) | The B/L must indicate goods shipped on board a named vessel, with the shipment date. |
| Bill of lading consignee mismatch | Article 20 | The consignee and notify party must follow the credit, for example to order of the issuing bank. |
| Invoice amount exceeds the credit | Article 18(b) | The drawn amount must stay within the credit amount and any tolerance stated in field 39A. |
| Missing or inconsistent documents | Articles 14(d), 14(f) | Data across documents must not conflict, and every document required by field 46A must be presented. |
| Documents presented to the wrong bank or after the presentation period | Articles 14(c), 16 | Presentation must reach the nominated or issuing bank within the period stated in field 48, or the 21-day default. |
How it works
- Step 1: Upload your MT700 LC document (PDF or Text).
- Step 2: Sign in and upload any of the six supported documents. Add LC amendments and the actual presentation date where available.
- Step 3: Review possible discrepancies and fields needing verification against the source documents.
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.
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Frequently asked questions
What is an LC discrepancy?
An LC discrepancy is any inconsistency between a presented document and the terms of the Letter of Credit, UCP 600, or ISBP 821. Banks have 5 banking days to examine documents (UCP 600 Art. 14b) and may refuse payment on a single discrepancy, so presentations must be cleaned before submission.
What are the most common LC discrepancies?
Late shipment or late presentation beyond the 21-day default (Art. 14c), goods description mismatch on the invoice (Art. 18c), missing on-board notation on the Bill of Lading (Art. 20), insurance coverage below 110% of CIF or dated after shipment (Art. 28), and amount or quantity outside the permitted tolerance (Art. 30).
How does the LC discrepancy auto-scanner work?
Upload your MT700 LC and supporting documents (invoice, Bill of Lading, insurance, etc.). The engine extracts fields using OCR and AI, then runs a deterministic rule check against UCP 600 and ISBP 821 - flagging every discrepancy, the relevant article, and the suggested correction. All processing happens securely server-side.
Does the LC Discrepancy Scanner replace the bank's examination?
No. It is decision support only. The issuing bank, confirming bank or nominated bank examines the documents on their face under UCP 600 Article 14 and alone decides whether a presentation complies. Use the scanner to clean your documents before presentation, then verify every finding against the original documents and the amended credit.
What does UCP 600 Article 14 require?
UCP 600 Article 14 sets the standard for examination of documents. A nominated bank, confirming bank or issuing bank has a maximum of five banking days following the day of presentation to determine compliance. Documents must appear on their face to comply with the terms and conditions of the credit. Data in a document must not conflict with data in that document, any other stipulated document or the credit.
What is ISBP 821 and how does it relate to UCP 600?
ISBP 821 (International Standard Banking Practice for Examination of Documents under UCP 600) is an ICC publication that interprets how banks apply UCP 600 article by article when examining trade documents. It covers how invoice descriptions should correspond with the credit (Article 18), what constitutes a compliant bill of lading on-board notation (Article 20), and how dates and signatures are assessed. Banks worldwide use ISBP 821 as the practical companion to UCP 600.
How do I fix a letter of credit discrepancy?
There are three main options: (1) Request an LC amendment from the applicant through the issuing bank - this is the cleanest solution but takes time. (2) Present the discrepant documents under reserve or indemnity, where the negotiating bank pays subject to the issuing bank's acceptance - this carries risk. (3) Correct the non-complying document before the LC expiry date where the document type permits correction, such as re-issuing a commercial invoice with the correct description.