19/01/2022
A document examiner will usually undertake a number of preliminary checks:
- Has the documentary credit expired?
- Have previous drawings under the documentary credit, if any, been recorded?
- Is the available balance sufficient for the current drawing?
- Are all the amendments available?
Banks should always physically record the results of the examination process, either in paper format or electronically. Whilst there is no particular standard, as a minimum such record should include:
- the amount of the drawing;
- list of charges and by whom they are payable;
- settlement terms;
- list of discrepancies, if any;
- initials or signature of the document examiner(s);
- details of any phone conversations with the presenter.
After reading through the documentary credit, the document examination can commence:
- against the terms and conditions of the documentary credit, including any subsequent amendments;
- against the applicable articles of UCP 600;
- with reference to the other presented documents;
- as per international standard banking practice.
This subject is covered in far greater detail within our training module ‘documentary credits in practice' which can be purchased at https://www.tradefinance.training/shop/
www.tradefinance.training
