Scrutiny of documents against LC

 Scrutiny of documents against LC

Detailed scrutiny of documents:

The AD Branch will carefully look into the following main points of each of the documents keeping in view the terms of LC:

Checking of documents:

a) Bill of Exchange:

1. That the bill of exchange (draft) has been properly drawn and signed by the beneficiary as mentioned in the L/C in accordance with the L/C terms.
2. That the amount drawn does not exceed the amount available under the credit.
3. That the amount is identical with that mentioned in the commercial invoice.
4. That the amount in words and figures tally.
5. That the bill of exchange is drawn on SOCIAL ISLAMI Bank.


b) Invoice:

1. That the beneficiary properly invoices the merchandise.
2. That the merchandise is invoiced to the importer on account of whom the L/C was opened.
3. That the descriptions of merchandise as shown in the invoice correspond to that required in the L/C.
4. That the unit price of merchandise in the invoice tallies with that of the unit price stipulated in the L/C and Indent.
5. That the invoice has been correctly and properly drawn and signed by the beneficiary as per terms of L/C.
6. That the relevant LCA form number, IRC number of importer along-with the Registration number of Indentor with Bangladesh Bank, are correctly incorporated in the invoice.

c) Bill of Lading:

1. That the bill of lading is clean “Shipped on Board”. B/L showing freight prepaid and properly endorsed to the order of the SOCIAL ISLAMI Bank.
2. That the bill of lading covers the merchandise described in the invoice, by marks and generic term.
3. That the port of shipment, port of destination, date of shipment, the name of consignee etc. shown in B/L are in agreement with those mentioned in the L/C.
4. That the bill of lading is properly signed by the proper authority of shipping company or by their authorized agents, showing capacity of the signatory.
5. That no clause appearing on the bill of lading expressly declares defective condition of goods/packaging etc. i.e. that B/L is not super imposed or claused one.
6. That bill of lading does not indicate that the merchandise has been shipped “on deck” unless specifically authorized in the L/C.
7. That the bill of lading is not stale and has been produced in full set as per terms of L/C.

d) Certificate of Origin:

That the certificate of origin of merchandise is in conformity with that stipulated in the L/C.

e) Other Documents:

The following additional papers if called for in the L/C and must conform to the terms of L/C must accompany the shipping documents:
1. Weight list
2. Packing list
3. Pre-shipment inspection certificate
4. Certificate that the correct goods have been shipped by the beneficiary.
5. Certificate to the effect that shipment/Transshipment has not been made on the port of a country expressly prohibited in the L/C


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