Manually Signed Invoice vs. Digitally Signed Invoice

When ISBP Default Rules Meet an Express LC Requirement

One of the most common misunderstandings in document checking arises from relying on ISBP default provisions while overlooking what the credit itself expressly requires.

A typical example is the commercial invoice: ISBP tells us when an invoice need not be signed — but what happens when the LC explicitly calls for a manually signed invoice?

This Q&A addresses that exact situation.

Question

Dear Sir,

As per ISBP 821 paragraph C11, an invoice need not be signed or dated.

However, under our LC requirement, we specifically call for a “commercial invoice to be manually signed.”

1. Can we raise a discrepancy based on this credit requirement?
2. If the commercial invoice is digitally signed, can we also raise a discrepancy?

Regards,

Ranjana Pathak

_____________

Answer

Dear Ranjana,

Thank you for your question.

ISBP 821 paragraph C11 applies only where a credit requires presentation of a commercial invoice without specifying whether it must be signed or dated. In such circumstances, an invoice need not be signed or dated.

However, where the credit expressly requires a signed commercial invoice, or more specifically a manually signed commercial invoice, that requirement must be complied with.

Accordingly:

• When the credit requires a manually signed invoice, the invoice must bear a handwritten (wet) signature.
• A digitally signed invoice does not satisfy a requirement for a manually signed invoice, as a digital signature is not a manual (handwritten) signature.

In such cases, the bank is entitled to raise a discrepancy, for example:

“Commercial invoice not manually signed as required by the credit.”

Conclusion

In short, ISBP provides default rules, but it does not override an express requirement of the credit.

Where the LC clearly calls for a manually signed invoice, compliance must be strict, and a digitally signed invoice does not meet that requirement.

Best regards,

Mr. Old Man