UCP 600 Article 12: Nomination Examination Checklist
Introduction
This checklist provides a step-by-step examination framework for nominated banks acting under UCP 600 Article 12. Each item maps to a specific provision of UCP 600 or ISBP 745 and identifies the verification required. Use this checklist when a nominated bank receives a presentation and must determine whether to examine, honor, negotiate, or refuse.
Examination Checklist
Phase 1: Pre-Examination Verification
| # | Check Item | Reference | Action |
|---|---|---|---|
| 1.1 | Confirm the bank is nominated in the credit | Art. 12(a) | Review the credit for the bank's BIC or name |
| 1.2 | Confirm willingness to act | Art. 12(a) | Internal decision to examine and honor/negotiate |
| 1.3 | Confirm the credit is still valid | Art. 11(a) | Check expiry date and presentation period |
| 1.4 | Confirm no amendment revokes nomination | Art. 10, Art. 12(a) | Review all amendments for nomination changes |
Phase 2: Document Examination
| # | Check Item | Reference | Action |
|---|---|---|---|
| 2.1 | Verify all required documents are presented | Art. 14(a) | Compare presented documents against credit requirements |
| 2.2 | Examine each document individually | Art. 14(a) | Apply examination standards to each document |
| 2.3 | Verify data consistency between documents | Art. 14(d) | Cross-reference data across all documents |
| 2.4 | Confirm non-documentary conditions are addressed | Art. 14(f) | Identify and address any non-documentary conditions |
| 2.5 | Apply ISBP 745 examination standards | ISBP §A1–A4 | Apply specific ISBP standards for each document type |
Phase 3: Negotiation/Honoring Decision
| # | Check Item | Reference | Action |
|---|---|---|---|
| 3.1 | Determine whether to negotiate or honor | Art. 12(c), Art. 7, Art. 8 | Classify the transaction |
| 3.2 | If negotiating, confirm draft purchase terms | Art. 12(b), Art. 12(c) | Document the purchase and payment |
| 3.3 | If honoring, confirm payment of complying presentation | Art. 7, Art. 8 | Document the payment |
| 3.4 | Verify reimbursement entitlement | Art. 12(d) | Confirm right to reimbursement |
Phase 4: Document Forwarding
| # | Check Item | Reference | Action |
|---|---|---|---|
| 4.1 | Forward documents to issuing bank without delay | Art. 12(d) | Send documents within one banking day |
| 4.2 | Include reimbursement documentation | Art. 12(d), Art. 13 | Attach all required reimbursement documents |
| 4.3 | Retain copies for file | Internal | Maintain complete file copies |
Phase 5: Reimbursement
| # | Check Item | Reference | Action |
|---|---|---|---|
| 5.1 | Submit reimbursement claim | Art. 12(d), Art. 13 | Send claim with supporting documentation |
| 5.2 | Track reimbursement receipt | Internal | Monitor for reimbursement within agreed timeframe |
| 5.3 | Escalate if reimbursement is delayed | Internal | Contact issuing bank if reimbursement is overdue |
Phase 6: Discrepancy Handling (If Applicable)
| # | Check Item | Reference | Action |
|---|---|---|---|
| 6.1 | Identify each discrepancy | Art. 16(a) | List all discrepancies |
| 6.2 | Notify beneficiary within five banking days | Art. 16(b) | Send discrepancy notification |
| 6.3 | State whether documents are held or returned | Art. 16(c) | Include holding instructions |
| 6.4 | Await beneficiary instructions | Art. 16(d) | Process instructions when received |
Conclusion
This checklist provides a comprehensive examination framework for nominated banks acting under Article 12. By following each phase in sequence, the nominated bank can ensure that all obligations are met, discrepancies are properly identified and notified, and reimbursement is claimed in a timely manner.
Frequently Asked Questions
1. Can the nominated bank skip the pre-examination verification?
No. The pre-examination verification confirms that the bank is authorized to act and that the credit is still valid. Skipping this step may result in unauthorized action.
2. How quickly must the nominated bank complete the examination?
Under Art. 14(c), the examining bank has a maximum of five banking days following the day of presentation to determine whether a presentation is complying.
3. What if the nominated bank identifies discrepancies?
If discrepancies are identified, the nominated bank must notify the beneficiary under Art. 16 within five banking days.
4. Can the nominated bank negotiate without examining documents?
No. The nominated bank must examine documents to determine whether they comply with the credit terms before negotiating.
5. What documentation is required for reimbursement?
The nominated bank should provide a copy of the credit, copies of documents presented, evidence of negotiation or honoring, and a statement of amounts claimed.
Source Notes
Context only. The following sources were used as background reference for this guide. No content was directly copied or paraphrased from these sources.
- ICC | International Chamber of Commerce — Incoterms® 2020 (published 29 Mar 2023)
- ICC Academy — A guide to types of documentary credit (published 21 Oct 2024)
- ICC Academy — Certified UCP 600 Specialist (CUCP) (published 12 Jul 2025)
- ICC | International Chamber of Commerce — UCP 600 Including eUCP Version 2.1 (published 31 Jul 2023)
- ICC Academy — Uniform Rules for Documentary Credits (UCP 600) eBook (published 12 Dec 2024)
| Regulation | Article / Section | Requirement | Consequence |
|---|---|---|---|
| UCP 600 | Article 12 | Nomination | Binary determination (compliant/discrepant) |
← Scroll horizontally to see all columns
Quick Reference Summary
- No reference captured.
Compliance Checklist
Get the Full LC Compliance Checklist
15-point pre-submission checklist covering UCP 600, ISBP 745, and SWIFT MT700 fields. Free PDF download.
No spam. Unsubscribe anytime.
DraftLC generates compliant UCP 600 Article 12 — so you never face this failure mode.
DraftLC drafts your LC with UCP 600-compliant terms and flags conflicts during drafting — before documents reach the bank.
No credit card required · See how DraftLC drafts compliant credits