Must Documents Show the Issuing Bank’s LC Reference — and What About the Negotiating Bank’s Reference?

Intro

 Credits often require that documents “indicate the L/C reference,” but do not always specify which reference is meant.

Is it the issuing bank’s LC number?

Or could a negotiating bank expect its own reference to appear on the documents?

Mr. Old Man looks at this question through the lens of UCP 600 and ISBP 821.

Question

Dear Mr. Old Man,

I have a question that needs your expert opinion.

We have received an MT710 issued by an Algerian bank, available with and advised through a bank in Abu Dhabi.

In the additional conditions of the LC, it states:

“All documents must indicate the L/C reference.”

However, the credit does not specify whether this refers to:

• the issuing bank’s LC reference, or
• the advising / negotiating bank’s reference.

From my understanding, it should be the issuing bank’s LC reference to be shown on the documents.

But could the negotiating bank consider it a discrepancy if its own reference is not mentioned?

Thank you.

Best regards,

Najjar

_______

Answer

Dear Najjar,

Thank you for your question.

Yes, your understanding is correct.

Where a credit requires documents to “indicate the L/C reference,” this refers to the issuing bank’s LC reference, typically the LC number and date.

That said, it is important to note that even the absence of the issuing bank’s LC reference on documents does not, by itself, constitute a discrepancy.

According to ISBP 821 paragraph (viii), a request to insert the credit number on a document is usually made by the issuing bank to facilitate document handling should any document become detached from the presentation. Provided that all stipulated documents are presented together, the absence of a credit number — or even a mistyping of that number — is not a valid reason for refusal.

The only exception is where the importing country requires the LC number to appear on one or more documents. In such cases, the credit must clearly state that this requirement is imposed for that reason.

Accordingly, a negotiating bank should not treat the absence of its own reference as a discrepancy, as such a requirement is neither stated in the credit nor supported by UCP 600 or ISBP 821.

You may find a similar discussion here:

https://mroldman.net/absence-lc-number-mistyping-number-document-not-constitute-reason-refusal/

I hope this clarifies the issue.

Best regards,

Mr. Old Man