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What is the aim of a commercial document when included within a documentary credit? It is varied but perhaps can be summarised as a document that evidences compliance with the various terms and conditions of a credit such as identification of goods, packing and weight requirements, inspection stipulations, etc. 

Whereas transport and insurance documents may have more relevance from a security perspective to banks, commercial documents are those that provide the applicant with the information that it needs regarding goods shipped, their unit prices, the packing conditions and weights and, most importantly, data concerning the quality or standard of the goods that have been shipped.

Invoice:

• An invoice can be prepared in one of a number of ways, ranging from a very simplistic form that merely provides the details of the beneficiary, applicant, goods description and an amount that is due, to one which additionally conveys details regarding routing of the goods, their origin, weights, measurements and shipping marks, etc.
• As with any other document, the degree of detail that is provided is usually within the control of the seller (subject to compliance with the terms and conditions of the documentary credit), but can be governed by the requirements of the importing country. However, it should be noted that the more data that is given the greater the risk of a conflict of data within the invoice itself, with data on another stipulated document or the documentary credit and, therefore, a discrepant presentation.

Packing List / Weight List:

• When a documentary credit requires the presentation of a packing or weight list, such a document fulfils its function by containing any information relating to the packing, respectively the weight, of the goods.
• The document may either be titled "Packing List"/"Weight List", bear a similar title, or not be titled at all, provided that it complies with the above.
• The concept is that it is not the title of a document that will make it comply with the requirement of a documentary credit, but rather whether the content complies with any stated terms and conditions for that document.

Certificate of Origin

• A certificate of origin declares the origin of the goods. It can, depending on the terms and conditions of a documentary credit, be issued by a number of entities including government agencies in the country of export, chambers of commerce or trade associations, or, in the absence of any indication of an issuer, by the seller.

Beneficiary Certificates:

• A beneficiary's certificate must fulfil its function by containing the data and certification as required by the documentary credit. The document may either be titled as called for in the documentary credit, bear a title evidencing the type of certification that has been requested, or not be titled at all, provided that it complies with the above.
• The certificate is to evidence the fulfilment of the requirement stated in the documentary credit as opposed to giving a literal representation of the wording that appears as the documentary requirement.

Other Certificates:

• Examples of such certificates include Analysis, Inspection, Health, Phytosanitary, Quantity, Quality, etc.
• The document may be titled as called for in the documentary credit, bear a title of similar intent or scope, or not be titled at all, provided that it complies with the above.
• When a documentary credit requires the presentation of a form of certificate as described above, without indicating any data content, such certificate must fulfil its function.
• Fulfilling the function is as simple as an inspection certificate declaring that an inspection of the goods has occurred, or an analysis certificate indicating that an analysis of the goods has occurred. The compliance of any results or statements relating to that inspection or analysis will be determined by the terms and conditions of the documentary credit, if any. The remainder of the document will be subject to examination according tosub-article 14 (d) to ensure that there is no data conflict with any other stipulated document or the terms and conditions of the documentary credit.

More information can be found in the CDCS, ISBP and Document Preparation modules at www.tradefinance.training