One Set of Documents Presented under Two Separate LCs – The “Combined Drawing” Dilemma

Every now and then, exporters face a tricky situation — two letters of credit, same buyer, same goods, same vessel, and the urge to save time by presenting one combined set of documents.

Sounds harmless enough, right?

Not quite.

What looks like a paperwork shortcut can easily turn into a “combined drawing” discrepancy — a frequent headache for both beneficiaries and banks.

Let’s look at one such case from our friend Duong Ng., where two LCs collided in one presentation, and see what ISBP 821 has to say about it.

QUESTION

Hello Sir,

I’d like to seek your opinion on the following case:

The presented documents include drafts, invoices, BL, and PL claiming under two different LCs (while the C/O and insurance are issued separately for each LC).

However, the covering letter only mentions one LC number. The goods are of the same type, and each LC covers a partial shipment.

The issuing bank raised a discrepancy for “combined documents.” However, the presenting bank disagreed, arguing that “both LCs did not specifically prohibit combined drawing. Since the applicant, beneficiary, shipment routes, and tenor are the same, the combined drawing should be acceptable.”

I look forward to your kind feedback.

Thank you very much,

Duong Ng.

_________

ANSWER

Dear Duong Ng.,

Thank you for your question.

I tend to agree with the issuing bank’s position — such a presentation is not acceptable.

According to ISBP 821 paragraph A40, documents required by a credit are to be presented as separate documents. An exception exists, for example, when a credit calls for both an original packing list and an original weight list — these may be combined into one document, provided that it contains both packing and weight details.

From this, it follows that even under a single letter of credit, documents are expected to be presented separately (except in such specific cases). Therefore, under two separate credits, combining documents is clearly inconsistent with standard practice and the spirit of ISBP 821.

In addition to the discrepancy of “combined documents,” the issuing bank could also justifiably raise:

• Overdrawn amount
• Invoice and bill of lading showing quantities or values exceeding LC requirements

Note: Although the covering letter mentions only one LC number, the presented documents refer to two LCs. This should be regarded as one combined presentation covering two separate LCs. Accordingly, the issuing bank should issue two separate notices of refusal, each under its respective LC.

Recommendations for the beneficiary:

• Always prepare documents separately, even under one LC, except where ISBP 821 expressly allows a combined document (e.g., packing + weight list).
• Avoid combining presentations or using a single covering letter for multiple LCs. This can cause confusion or delay in payment if one presentation is found discrepant.

I hope this helps clarify your case.

Best regards,

Mr. Old Man