ISBP 745 Section B: Invoice Goods Description

Introduction

The description of goods on the commercial invoice is one of the most scrutinized elements of a documentary credit presentation. ISBP 745 Section B and UCP 600 establish that the invoice description must not conflict with the credit's description of goods, and that data in other documents need not repeat the invoice description but must not conflict with it. The goods description on the invoice is the benchmark against which other documents' descriptions are measured. When the invoice description differs from the credit — or when other documents describe the goods differently than the invoice — discrepancies arise. This guide examines the goods description requirements, common failure modes, and the resolution framework.

Failure Mode Analysis

FM1: Invoice Description Does Not Match Credit Description

The credit describes the goods as "Organic Green Tea, 250g packets." The invoice describes them as "Green Tea, 250g." The invoice omits "Organic." Under ISBP 745 B7, the invoice description must be consistent with the credit description. The omission of "Organic" changes the product description — this is a discrepancy.

FM2: Invoice Adds Description Not in the Credit

The credit describes the goods as "Steel Pipes, 4-inch diameter." The invoice describes them as "Steel Pipes, 4-inch diameter, Grade A, ASTM A106." The invoice adds specifications not in the credit. Under ISBP 745 B7, additional description is typically acceptable as long as it does not conflict with the credit description. However, adding "Grade A, ASTM A106" when the credit does not specify a grade may create a conflict if the transport document describes the goods without the grade specification.

FM3: Transport Document Description Conflicts with Invoice Description

The invoice describes the goods as "Organic Green Tea, 250g packets." The bill of lading describes them as "Tea leaves, 250g." Under ISBP 745 B8, the transport document may use a general description, but it must not conflict with the invoice description. "Tea leaves" is a more general term that does not conflict with "Organic Green Tea" — this is likely compliant. However, "Black Tea" would conflict.

FM4: Certificate of Origin Description Conflicts with Invoice Description

The invoice describes the goods as "Cotton Yarn, 40/1 count." The certificate of origin describes them as "Cotton Thread, 40/2 count." The difference in both the product name (yarn vs. thread) and count (40/1 vs. 40/2) constitutes a conflict under ISBP 745 A2.

FM5: Invoice Description Includes Brand Name Not in Credit

The credit describes the goods as "Washing Machines, 8kg capacity." The invoice describes them as "Samsung Washing Machines, 8kg capacity." The addition of the brand name "Samsung" is additional information. Under ISBP 745 B7, the description must be consistent with the credit — additional detail is typically acceptable. However, if the credit states "without brand name," the brand name on the invoice is a discrepancy.

Deterministic Resolution Architecture

Step 1: Read the Credit's Goods Description

Extract the exact goods description from the credit. Note any specific requirements:
- Exact wording required: the invoice must match exactly.
- "Description as per" reference: the invoice must match the referenced description.
- No specific requirement: the invoice must describe the goods consistent with the credit.

Step 2: Compare the Invoice Description Against the Credit Description

Apply ISBP 745 B7:
- Identical or substantively equivalent: compliant.
- Different in material aspect: discrepant.
- Additional detail not in the credit: typically acceptable, but check for conflicts.

Step 3: Compare the Invoice Description Against Other Documents' Descriptions

Apply ISBP 745 B8:
- Other documents may use general descriptions.
- General descriptions must not conflict with the invoice description.
- "General" means broader but consistent, not contradictory.

Step 4: Check for Specific Credit Restrictions

Some credits restrict the goods description:
- "Description to read exactly as stated" → exact match required.
- "No brand names permitted" → brand names on the invoice are discrepancies.
- "Description to include [specific terms]" → those terms must appear.

Step 5: Verify the Description Across All Documents

For each stipulated document, verify that the goods description is consistent with the invoice:
- Transport document: general terms acceptable (B8).
- Certificate of origin: general terms acceptable.
- Insurance document: must describe the goods consistent with the credit.
- Inspection certificate: general terms acceptable.

Step 6: Assess Whether Additional Description Creates a Conflict

If the invoice adds detail not in the credit, check whether this additional detail conflicts with any other document. For example, if the invoice adds "Grade A" but the transport document describes the goods as "Grade B," the invoice's additional detail creates a conflict.

Step 7: Issue the Refusal Notice

If any description discrepancy is found:
- State: "Invoice description [X] does not match credit description [Y], contrary to ISBP 745 B7 and UCP 600 Art 18(c)."

Conclusion

The invoice goods description is the standard against which all other documents are measured. ISBP 745 B7 requires the invoice to match the credit description. ISBP 745 B8 allows other documents to use general descriptions that do not conflict. Practitioners should advise beneficiaries to match the credit description exactly on the invoice and to ensure that other documents' descriptions are general but consistent.

FAQ

Q1: Can the invoice include more detail than the credit's description?

Yes, additional detail is typically acceptable under ISBP 745 B7, provided it does not conflict with the credit description. However, if the credit states "description as per contract" and the contract does not include the additional detail, the invoice description may conflict.

Q2: Does the invoice need to include the credit's full description?

The invoice must indicate a description that is "consistent with" the credit description. This means the invoice description must not omit material elements of the credit description. Omitting "Organic" when the credit specifies "Organic Green Tea" is a discrepancy.

Q3: Can the transport document use a different description than the invoice?

Yes, under ISBP 745 B8, the transport document may use a general description. "Steel Pipes" on the bill of lading is acceptable when the invoice says "Steel Pipes, 4-inch diameter, Grade A." The general term must not conflict.

Q4: What if the credit does not describe the goods?

If the credit omits a goods description, the invoice must still describe the goods in a manner consistent with the credit's purpose. The description should be clear enough to identify the goods.

Q5: Can the beneficiary add a trade name or trademark not in the credit?

ISBP 745 B7 requires the invoice description to be consistent with the credit. Adding a trade name is typically acceptable unless the credit prohibits it. However, if the trade name conflicts with the description in other documents, it may create a discrepancy.

Source Notes

Context only — no direct article text was extracted from these sources during research:

• ICC Academy — A Guide to Types of Documentary Credit (ICC Academy, 2024)
• ICC Academy — 11 Questions That Will Help You Master Documentary Credits (ICC Academy, 2024)
• ICC Academy — Certified UCP 600 Specialist (CUCP) (ICC Academy, 2025)
• ICC — UCP 600 Including eUCP Version 2.1 (International Chamber of Commerce, 2023)
• ICC — ISBP 745: International Standard Banking Practice (International Chamber of Commerce, 2013, updated 2020)