Full Means Full — Describing the Goods in Line with ISBP 821

Intro

Sometimes, the devil really is in the description. A letter of credit may ask for a “full description of goods,” and exporters wonder whether they can simplify the wording in their invoice — especially when only one mode of shipment applies. This question from Mr. Nishanth is a good example of how to balance what’s required by the LC with what’s actually shipped, and how ISBP 821 (C4) helps keep the document compliant and dispute-free.

Question

Dear Sir,

Good day!

How are you doing?

I have a doubt regarding the description of goods that needs to be stated in the invoice as per the letter of credit (LC).

Description of goods in the LC is mentioned as below:

XXXX as per Proforma Invoice No. YYYY
+For Shipment by Vessel:
Incoterms 2020 FCA ANY PORT IN ABCD

+For Shipment by Plane:
Incoterms 2020 EXW ANY AIRPORT IN DDBA

Also, the LC includes a clause requiring:

“Signed commercial invoice in 2 originals stating full description of goods.”

Now, the shipment is happening by sea only.

Does this mean that I have to mention the line “+For Shipment by Vessel” in the invoice description, or can I omit it?

Also, kindly cite the ISBP or UCP clause justifying the answer.

Regards,

C.R. Nishanth

________

Answer

Dear Nishanth,

Thank you for your question.

When it comes to the description of goods in a commercial invoice, the key reference is ISBP 821 paragraph C4, which states:

“The description of goods, services or performance on an invoice is to reflect what has actually been shipped, delivered or provided.

For example, when the goods description in the credit indicates a requirement for shipment of ‘10 trucks and 5 tractors’, and only 4 trucks have been shipped, an invoice may indicate shipment of only 4 trucks provided that the credit did not prohibit partial shipment.

An invoice indicating what has actually been shipped (4 trucks) may also contain the description of the goods stated in the credit, i.e., 10 trucks and 5 tractors.”

In your LC, the goods description reads as follows:

“XXXX as per Proforma Invoice No. YYYY

+For Shipment by Vessel: Incoterms 2020 FCA ANY PORT IN ABCD

+For Shipment by Plane: Incoterms 2020 EXW ANY AIRPORT IN DDBA”

and the LC expressly requires:

“Signed commercial invoice in 2 originals stating full description of goods.”

Because the LC specifically calls for the full description of goods, the invoice should reproduce the entire LC wording exactly as stated. This ensures full compliance and avoids any dispute about an incomplete description.

After that, to reflect what was actually shipped (by sea), you may add a clarification line such as:

Shipment effected by vessel under Incoterms 2020 FCA [actual port], ABCD.

This approach satisfies both the LC requirement for “full description of goods” and ISBP 821 paragraph C4, which requires the invoice to reflect what has actually been shipped.

In short, show the full LC wording first, then indicate the actual shipment details.

That’s the safest way to stay compliant and discrepancy-free.

Best regards,

Mr. Old Man