GlossaryEN1 min readUpdated: Jun 26, 2026
Export Letter of Credit review / examination
Payment under a letter of credit is entirely conditional on the document examination: in an export LC review, the nominated or confirming bank checks every submitted document – commercial invoice, transport documents, insurance certificate, certificate of origin – clause by clause against the credit's stated requirements.
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Source: https://iccwbo.org/business-solutions/banking-and-finance/ucp-600/
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Logistics Concept
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Definition & Explanation
Payment under a letter of credit is entirely conditional on the document examination: in an export LC review, the nominated or confirming bank checks every submitted document – commercial invoice, transport documents, insurance certificate, certificate of origin – clause by clause against the credit's stated requirements. A single formal discrepancy, however minor, can justify refusal of payment. The exporter bears the burden: unresolved discrepancies not accepted within the presentation period forfeit the payment guarantee. The process is governed by the ICC's Uniform Customs and Practice for Documentary Credits (UCP 600) and sits at the core of trade finance because it effectively limits credit risk for both parties. It should not be confused with the importer's side of the process, which concerns the issuance and structuring of the credit.
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