A covering schedule that accompanies the documents should include a reference number and contact details of the presenter in the event of any problems.
Upon receipt of documents, the covering schedule should be annotated with the date and time of receipt. This is critical in the event of any future disagreements, and also to determine compliance with the expiry date and the period for presentation.
Once the documentary credit reference has been identified and the relevant file or record recovered, the examination process can begin.
It is important to ascertain whether or not the documentary credit is actually available at the counters of the bank to which presentation has been made. This will have an impact on the responsibilities of the bank. Should the documentary credit be of a specific type (e.g. transferable, revolving, standby, back-to-back), it might be necessary to take note of any internal policies and procedures. A note should also be made of the terms of availability, i.e. sight, deferred payment, acceptance, etc.
The next step is to ensure that all of the documents listed on the covering schedule (by type and number of originals and copies) have actually been presented.
The covering schedule should also be checked in order to determine that it includes details as to how and where payment should be made, reference to payment of charges, and details as to where and how the settlement advice should be sent.
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/