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Scrutiny of Export Documents
Scrutiny of Export Documents
Scrutiny of Export Documents
Article 14(a) of UCPDC: The issuing bank must examine a presentation to determine,
on the basis of the documents alone, whether or not the documents appear on their face
to constitute a complying presentation.
Article 5 of UCPDC: Banks deal with documents and not with goods, services or
performance to which the documents may relate.
These articles, therefore, binds the concerned bank to exercise prudence in examining
the documents.
The correct types of documents in the required sets/copies have been submitted.
The documents are properly drawn, signed, endorsed and if required, correctly stamped,
The physical description of the goods mentioned in the documents conform to the
description given in the letter of credit,
The draft is drawn according to the terms and conditions stipulated in the credit.
The relative documents should also be scrutinized to ensure that they have been drawn
up in conformity with exchange control regulation of the country.
Whether the tenor and amount are in conformity with the terms of the credit.
Whether the date of the draft within the date of credit.
Amount of bill of exchange differs with that of Invoice.
The amount drawn does exceed the amount available under the credit.
Not drawn on L/C issuing Bank
Commercial Invoice:
Whether the description of goods, price, quantity, quality, marking and other
specifications are in conformity with the credit terms.
Whether the amount corresponds with the amount of Bill of Exchange and that of L/C.
Whether requisite number of invoice submitted as asked for.
Whether issued by the beneficiary.
Whether signed by the beneficiary.
Gross wt., Net wt & measurement, numbers of cartons/packages differ with those of B/L.
Not marked “Original”.
Not signed by the beneficiary.
In must agree with the invoice as regards quantity and description of goods as well as in
respect of ports of shipment and destination.
Other Document:
The other documents i.e. packing list, weight/ measurement certificate, survey report,
quality control certificate etc. as per credit should be submitted by the exporter and care
should be taken while examining these documents that these documents are not the
contradiction to the credit terms.
1. With no discrepancy
2. With minor discrepancy
3. With major discrepancy
Documents with minor discrepancies that can be removed or corrected by the exporter/
shipper and documents with minor discrepancies that cannot be removed at once may
be negotiated on submission of indemnity bond by the exporter.
Documents with major discrepancies that cannot be corrected or removed should be sent
on collection basis with the permission of the exporter. These documents should not be
negotiated against indemnity bond.
Passing vouchers:
At the time of negotiation/purchase (Only when CM portion is purchased)
Dr. FDBP account (@ OD sight export)
Cr. CD A/C
Dr. ID, HO (CM portion @ TT Docs & rest portion @ OD Sight Export)
Cr. FC Held for BTB payment (@ OD Sight Export)
Cr. FBP A/C (@ OD Sight Export)
Cr. I/A Exchange Earning
Cr. Packing Credit/ Others Loan A/C
Cr. Income A/C Com
Cr. S/D Tax
Cr. S/D, Buying house commission
After realization of Export proceeds & on the maturity of BTB bills payment is made
in USD or BDT.