Mistyping of the L/C Number on Documents: Is It a Valid Discrepancy?

It is common for documentary credits to require that all presented documents indicate the credit number. In practice, however, typographical errors occasionally occur. A frequently asked question is whether an issuing bank may refuse documents when the credit number appears incorrectly, even though the mistake is merely the result of a typing error.

The following question concerns a situation in which the L/C number ABC125 was shown on the documents as ABC12S, with the number “5” mistakenly typed as the letter “S”. Does such an error constitute a valid discrepancy under UCP 600 and ISBP 821? The answer below examines the relevant ISBP provisions and ICC practice.

Question

Dear Mr. Old Man,

I have a question for you.

The credit contains the following requirement:

Field 47A: All documents must indicate the L/C number.

L/C No.: ABC125

However, the documents presented indicate the L/C reference as ABC12S instead of ABC125. In other words, the number “5” has been typed as the letter “S”.

In your opinion, does this constitute a valid discrepancy?

Regards,

Fatih

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Answer

Dear Fatih,

Thank you for your question.

According to paragraph (viii) of ISBP 821, a requirement to indicate the credit number on a document is usually inserted at the instigation of the issuing bank in order to facilitate the collation of documents should one or more documents become detached from the presentation. Provided that all stipulated documents are received by the issuing bank, the absence of the credit number, or the mistyping of that number on a document, does not constitute a reason for refusal.

The exception is where the importing country’s regulations require the credit number to appear on one or more documents. In such circumstances, the credit must clearly indicate that this is the reason for the number to be shown on the relevant document(s).

Several ICC opinions have confirmed the same principle.

In the present case:

• The credit requires all documents to indicate the L/C number.
• The presented documents do contain an L/C reference, but there is a typographical error, with the number “5” being typed as the letter “S”.

Based on paragraph (viii) and paragraph A23 of ISBP 821 (Misspellings and Typing Errors), this discrepancy should not constitute a valid ground for refusal.

Best regards,

Mr. Old Man