Common Errors and Discrepancies in Bill of Lading Under UCP 600 Article 20

Introduction

The bill of lading is the document most frequently discrepant under documentary credits. UCP 600 Article 20 sets out eight specific requirements (carrier name, signature, on-board indication, ports, originals, terms and conditions, charter party exclusion, and transhipment rules). Failure to satisfy any one of these requirements produces a discrepancy. This guide catalogues the most common bill of lading errors and discrepancies, explains why each is a failure under Article 20, and provides a resolution path for each.

Failure Mode Analysis

Failure Mode 1: Carrier not named or signature not identified

The bill of lading does not name the carrier, or the signature does not identify the signing capacity. This is the single most common bill of lading discrepancy. Under Article 20(a)(i), the carrier must be named and the signature must be identified.

Failure Mode 2: Missing or incomplete on-board notation

The bill of lading is issued before loading and contains no on-board notation. Or the on-board notation exists but does not identify the vessel, port, or date. Article 20(a)(ii) requires evidence of shipment on board.

Failure Mode 3: Port of loading or discharge does not match the credit

The bill of lading shows a port of loading different from the credit, or the port of discharge does not match. Article 20(a)(iii) requires the ports to match the credit. ISBP 745 E6(f) and E8 address port identification.

Failure Mode 4: Incomplete set of originals

The bill of lading is issued in three originals but only one is presented. Article 20(a)(iv) requires the sole original or the full set. ISBP 745 E11 addresses original identification.

Failure Mode 5: Charter party indication present

The bill of lading contains a reference to a charter party. Article 20(a)(vi) excludes any charter party indication.

Failure Mode 6: "Intended vessel" or "intended port" without on-board notation

The bill of lading states "intended vessel MV Pacific" without a separate on-board notation identifying the actual vessel. Article 20(a)(ii) requires an on-board notation when the vessel name is qualified.

Failure Mode 7: Bill of lading is a copy, not an original

The bill of lading presented is a photocopy without an original signature or stamp. Article 20(a)(iv) requires the original. ISBP 745 E11 addresses original marking.

Failure Mode 8: Goods description conflicts with the credit

The bill of lading describes the goods in a manner that conflicts with the credit. Article 14(d) requires data not to conflict. ISBP 745 E22 permits a general description not conflicting with the credit.

Deterministic Resolution Architecture

1. Before requesting the bill of lading, read Article 20 requirements and the credit's transport-document clause.
2. Confirm the carrier is named on the document.
3. Verify the signature identifies the signing capacity (carrier, master, or named agent).
4. Check the on-board indication: pre-printed wording or a dated on-board notation.
5. Confirm the port of loading and port of discharge match the credit exactly.
6. Verify the original set is complete and presented in full.
7. Scan the document for any charter party reference.
8. If the vessel or port is qualified with "intended," confirm a separate on-board notation corrects the qualification.
9. Cross-check the goods description, quantity, and weights against the invoice and other documents.
10. If any discrepancy is identified, obtain a corrected bill of lading before presentation.

Conclusion

Bill of lading discrepancies are the leading cause of documentary credit rejections. Article 20 provides a structured set of requirements; ISBP 745 E1 through E24 supply the examination mechanics. A disciplined pre-presentation check that covers carrier, signature, on-board notation, ports, originals, and charter party exclusion prevents the majority of failures. The examiner reads the document on its face; the exporter must do the same before presenting it.

FAQ

What is the most common bill of lading discrepancy?
The most common discrepancy is the failure to name the carrier or to identify the signing capacity. This is followed by missing or incomplete on-board notations.

Can a bill of lading with a discrepancy still be accepted?
Only if the issuing bank or confirming bank waives the discrepancy under Article 16. The bank is not obligated to accept a discrepant presentation.

Does the bill of lading need to state the word "original"?
ISBP 745 E11(b) states that bills of lading marked "First Original," "Second Original," "Third Original," or "Original," "Duplicate," "Triplicate" or similar expressions are all originals.

Can the bill of lading describe the goods in different terms than the credit?
ISBP 745 E22 permits a goods description in general terms not conflicting with the credit. But the description must not conflict.

What if the bill of lading is signed by an agent but the agent is not named?
This is a discrepancy. Article 20(a)(i) requires the agent to be named and the signing capacity to be identified.

Source Notes

• Canonical authority: UCP 600 Articles 14, 20; ISBP 745 paragraphs E1 through E24.
• Live context: Google News RSS scan, ICC Academy "ISBP Insights | Avoiding common LC discrepancies," April 2026; ICC Academy "Certified UCP 600 Specialist (CUCP)," July 2025. Context only, not legal authority.