According to the letter of credit rules, the commercial invoice must contain a description of goods, which corresponds to that indicated in the credit.
Other documents may or may not contain a description of goods.
If a document other than the commercial invoice, such as a bill of lading, packing list, certificate of origin, multimodal bill of lading etc., bears a description of goods, this should be in general terms but not inconsistent with that shown in the credit.
What everyone needs to know about the description of goods on a multimodal bill of lading is that the description of goods on a multimodal bill of lading can be indicated in general terms as long as it is not inconsistent with other documents and the letter of credit itself.
If the issuing bank finds out that the description of goods on the multimodal bill of lading is inconsistent with the letter of credit terms, then the issuing bank will issue a discrepancy, which is known as inconsistent description of goods.
Letter of Credit Discrepancy Example: Description of Goods is Inconsistent on the Multimodal Bill of Lading
A letter of credit has been issued in SWIFT format, subject to UCP Latest Version, with the following details:
Letter of Credit Conditions
Field 45-A: Description of Goods: Cocoa Powder (PCPN)
Field 46A: Documents Required: Full set of multimodal or combined transport document however named consigned to the order of Belfius Bank SA, notify applicant showing freight prepaid.
The beneficiary presented a multimodal bill of lading with the following data:
Multimodal Bill of Lading
Description of Goods: Second Quality Cocoa Powder
Discrepancy: Multimodal bill of lading shows a description of goods inconsistent with the letter of credit and other documents.
Reason for Discrepancy: Description of goods on the multimodal transport document may be shown in general terms not in conflict with that stated in the credit.