International trade documents are an integral part of all international payment methods, including documentary credits, letters of credit L/C, documents against payment, and documents against acceptance. The documents called for by a payment type will differ somewhat according to the nature of the goods and the countries of export and import. Some documents, however, such as the International Commercial Invoice and a Bill of Lading B/L, are specified in all transactions.

Originals

The originals of specified documents should be provided unless copies are called for or allowed. If more than one set of originals is required, the buyer should specify in the credit how many are necessary. Unless otherwise noted in the documentary credit, banks are authorized to accept documents as originals, even if they were produced or appear to have been produced on a copy machine, by a computerized system, provided they have the notation “Original” and are, when necessary, signed.

Named carrier

A transport document, such as Bill of Lading B/L, Airway Bill AWB o CMR Transport Documents) must appear on its face to have been issued by a named carrier, or his agent. This does not mean that the applicant must name the carrier in the documentary credit application. It merely means that the transport document must indicate the name of the carrier.

Authentication

Unless otherwise noted in the documentary credit, banks are authorized to accept documents that are authenticated, validated, legalized, visaed, or certified so long as the document appears on its face to satisfy the requirement. This means that the banks are not responsible for the verification of the certification or authorized signature. Certificates must usually bear the signature of the issuer.

Signature

Banks are authorized to accept documents that have been signed by digital, facsimile, stamp, symbol, or any other mechanical or electronic method.

Unspecified issuers or contents of documents

If the credit does not name a specific issuer or specific contents of a document (other than transport documents, insurance documents, and the commercial invoice), banks are authorized to accept documents as presented so long as the data contained in the documents are consistent with the credit and other stipulated documents.

Issuance date vs. letter of credit date

Unless otherwise noted in the Letter of credit L/C, banks are authorized to accept documents dated prior to the issuance date of the credit, so long as all other terms of the credit have been satisfied.

Documentation Checklist

The following is a list of points that buyers, sellers, and banks should all be aware of when preparing, presenting, and checking documents for documentary payment transactions:

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International Trade Documents