On this page you can find most common discrepancies related to the inspection certificate, which is issued under a typical letter of credit transaction.
Discrepancy can be defined as an error or defect, according to the issuing bank, in the presented documents compared with the documentary credit, the UCP 600 rules or other documents that have been presented under the same letter of credit.
Inspection in international trade can be defined as a process of checking the quality of goods against the contractual requirements.
Inspection certificate is the document that is usually issued by the inspection company after completion of the inspection.
Inspection certificate provides data on the result of the inspection.
Inspection Certificate Discrepancies
- Inspection Certificate Not Issued and Signed by the Party Required by the Letter of Credit
- Total Quantity Indicated on the Certificate of Inspection is not in Accordance with the Bill of Lading and Certificate of Origin
- Inspection Certificate Is not Dated within the Timeline Required by the Documentary Credit
- Inspection Certificate Identifies Different Goods Inspected Inconsistent with Those Described by Commercial Invoices
- Inspection Certificate Indicates That Goods Do not Comply with the specifications
- Inspection Certificate Indicates That Packing is not as per L/C.
- Pre-shipment Inspection Certificate Shows Date of Inspection a Later Date Than Date of Shipment
Important Points Regarding the Inspection Certificates under Letter of Credit Rules:
- When a credit requires the presentation of an inspection certificate, this will be satisfied by the presentation of a signed document titled as inspection certificate, or bearing a similar title or even untitled, which fulfills its function by certifying the result of the indicated action, for example, the results of the inspection.
- When a credit requires the presentation of a pre-shipment inspection certificate, which relates to an action required to take place on or prior to the date of shipment, the certificate must indicate:
a. an issuance date of the certificate is no later than the date of shipment; or
b. stating that the inspection of goods took place prior to, or on the date of shipment,
c. the exact title of the required certificate, such as, “Pre‐shipment Inspection Certificate”.
- An inspection certificate should be issued by the institution stated in the credit.
- When a letter of credit does not state the title of an issuer, any institution including the beneficiary could issue the inspection certificate.
- When a letter of credit indicates specific requirements with respect to inspection, the data regarding the inspection mentioned on the inspection certificate should comply with those requirements.