Correct address indicated on the lc text
Understanding the importance of the correct addresses in a letter of credit transaction.

Laura from Germany is asking a question regarding the beneficiary. She would like to know whether banks can control the address indicated on the lc text by comparing it with their internal systems. Below you can find her question and my answer respectively.
Question Message
Good day,
I would like to know whether you can advise what responsibility the bank would have if they receive a L/C for their client, to the correct NAME of the beneficiary BUT the address indicated in the L/C does not match with the address in the registry of the bank (customer's address). Is the bank suppossed to recheck this information BEFORE accepting the L/C?? Also, when the bank receives the shipping documents from their client, again the address in the invoice, packing list, etc. is NOT the same address as they one they have in their registry. Would very much appreciate your comments. Thanks / regards Laura

Answer Message
Dear Laura,
Beneficiaries have to present discrepancy free documents to get their payments from the banks under letter of credit transactions. "Wrong name and address of the beneficiary or applicant" is one of the most common discrepancy type we see in lc documents. You have to be very careful especially about the name of the beneficiary. If the name of the beneficiary is wrong on the letter of credit text then you have to correct it before initiating the transaction. But the address of the beneficiary is another story. Let us have a look at the related UCP 600 rule below, 

Article 14 - Standard for Examination of Documents 

Field j: When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in the credit or in any other stipulated document, but must be within the same country as the respective addresses mentioned in the credit. Contact details (telefax, telephone, email and the like) stated as part of the beneficiary's and the applicant's address will be disregarded. However, when the address and contact details of the applicant appear as part of the consignee or notify party details on a transport document subject to articles 19, 20, 21, 22, 23, 24 or 25, they must be as stated in the credit.

As we understand from above letter of credit rule beneficiary and applicant addresses indicated on the credit do not need to be identical on the presented documents as long as they are located in the same country. The only exception is the transport documents. Please share this information with your bank and ask them why they are trying to match the address of the beneficiary mentioned on the credit with their internal system. 
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What is correct address? 

When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in the credit or in any other stipulated document, but must be within the same country as the respective addresses mentioned in the credit.
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