Every trade runs on a short stack of documents, and under a letter of credit the bank pays against the paper
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Ossiano Guides · Documents and risk
The commercial invoice, transport document, certificate of origin, insurance document and export filings each answer a different question. A bank checking them under UCP 600 has at most five banking days to decide.
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01 · The core stack
Five documents carry most trades: invoice, packing list, transport document, origin and insurance
Every export needs papers. They tell the buyer, the banks and customs what was sold, how it moved and where it came from. The US International Trade Administration (ITA) calls the main set . These are the papers the importer needs to take possession of the goods, according to its Trade Finance Guide.
The comes first. It is a legal document between the exporter and the buyer, says the ITA's Common Export Documents page, updated February 12, 2025. It states what was sold and how much the buyer must pay. Under a letter of credit, the invoice must appear to have been issued by the seller, called the . The UK Supreme Court cited this rule, from article 18 of UCP 600, in Taurus Petroleum v SOMO.
The sits beside the invoice. It shows what each package holds, so everyone can check the goods.
The is the main transport document. The , the company that moves the goods, issues it as a receipt. The ITA describes it as a contract between the owner of the goods and the carrier. Ocean bills come in two common types. A is non-negotiable, so it cannot be traded on. A , also called a shipper's order bill, can. Our guide to the bill of lading covers both.
A is a simpler transport document. It is a receipt that names the person the carrier must deliver the goods to, under the UK Carriage of Goods by Sea Act 1992.
A shows where the goods were made. Some countries require one, the ITA notes. A body such as a local chamber of commerce usually validates it. An shows the goods are insured while they travel.
Figure 1 · Interactive
The trade documents checklist
Tap a category. Each row shows what the document proves and who issues it.
Sources: US International Trade Administration, Common Export Documents, February 12, 2025; UK Electronic Trade Documents Act 2023, section 1.
02 · Export filings
US export filings sit beside the commercial set and have their own triggers
Some papers go to the government, not the buyer. In the United States, the main one is , or EEI. It is filed through the Automated Export System (AES), the US online system for export data.
An EEI filing is needed when the goods under one Schedule B number are worth more than US$2,500, the ITA says. A Schedule B number is the US code that classifies an export. A filing is also needed whenever a mandatory filing rule applies, whatever the value.
Some exports are also controlled. The rules are the , or EAR. The Bureau of Industry and Security (BIS) issues them, and they cover exports, reexports and some activities, per the eCFR. The BIS table of contents runs from Part 730 to Part 774, the Commerce Control List. Checks on the parties to a trade are covered in our guide to know your customer in trade finance.
03 · Who sets the list
The sale contract or the credit sets the required documents
No single rule lists the documents for every trade. The are ICC trade terms. They split the tasks, costs and risks of delivery between seller and buyer. But they do not say which documents the seller must give the buyer for customs, the ITA points out. They also say nothing about how or when the buyer pays. Our guide to Incoterms explains the terms.
So the parties write the list themselves. It goes in the sale contract, or in the credit if there is one. The list then follows the payment method.
Under a , the credit names each document the bank will check. Under a , the seller's bank sends the to the buyer's bank. Under , the buyer gets the goods before it pays. Our guide to the payment terms spectrum compares all three.
04 · Examination
Under a letter of credit, banks check the documents against three rulebooks, on a short clock
Under a letter of credit, the bank pays against paper. It checks the documents, not the goods.
The seller hands its documents to the bank. This is called a . The bank checks whether it is a . That means the documents match three things: the terms of the credit, the rules in , and international standard banking practice, per the UCP 600 rules.
That practice is written down in . The current edition dates from 2023 and is ICC publication P821E. It collects how banks prepare and check documents under a credit, and is read together with UCP 600, according to the ICC. UCP 600 itself has applied since July 1, 2007, the ICC says.
The clock is short. Each bank has at most five after the day of presentation to decide. A banking day is a day the bank is normally open where the work is done. This limit is the , set in article 14(b) of UCP 600. Figure 2 counts it for you.
Figure 2 · Try it
When must the bank decide?
Pick the presentation day. The last day for the bank's decision updates.
Day the documents are presented
Presented on
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Banking days counted
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Last day for the bank's decision
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Formula: start from the day after presentation and count forward five banking days, skipping Saturdays and Sundays. The fifth banking day is the last day for the decision. The example dates in October 2026 are for illustration only.
Our Research Desk counted five banking days forward, the UCP 600 maximum, treating Monday to Friday as banking days and ignoring public holidays.
This calculator explains the concept only. Banking days depend on the place of examination and local holidays, and a bank may decide sooner.
A mismatch between the documents and the credit is called a . Discrepancies may cost the exporter its payment, the ITA warns.
A bank that refuses must say why, in one go. It sends a single that lists each discrepancy, under UCP 600. The notice has to be effective. In Voest-Alpine Trading v Bank of China (2002), a US$1.2 million credit ran under UCP 500, the earlier version of the rules. The US Court of Appeals for the Fifth Circuit found the bank's notice was not effective. So the bank lost its right to refuse the documents.
Figure 3 · Interactive
From presentation to payment or refusal
Pick an outcome to follow the bank's steps.
Steps are drawn from ICC UCP 600 (2007) and ISBP (2023) as described in ICC publications. Step 4 on the discrepant tab is drawn from Voest-Alpine Trading USA v Bank of China (5th Cir 2002).
05 · Paper to electronic
Electronic trade documents now have legal footing alongside paper
Trade documents no longer have to be paper. The UK's , or ETDA, came into force on September 20, 2023. Section 1(2) lists eight example trade documents, per legislation.gov.uk. They are the bill of exchange, promissory note, bill of lading, ship's delivery order, warehouse receipt, mate's receipt, marine insurance policy and cargo insurance certificate.
The ICC rules allow electronic documents too. The is the ICC supplement to UCP 600. It lets the seller present electronic records under a credit, alone or with paper, per the eUCP rules.
The core rules are stable. The ICC Banking Commission published its UCP/ISBP Action Plan 2026-2027 on July 31, 2026. It focuses on clarification, interpretation, transport practice, standby alignment and education, rather than a revision of UCP 600. Read more in our guide to electronic bills of lading.
06 · Ossiano view
A clean document set is the fastest route from shipment to cash
OBSERVATION 01
The credit or contract writes the list
The ITA notes that the Incoterms rules do not say which documents the seller must provide. So the credit or the sale contract is where the checklist is agreed.
OBSERVATION 02
The examination clock is short and fixed
Each bank has at most five banking days to decide. A complete, consistent set moves through examination on a known timetable.
OBSERVATION 03
Electronic documents have legal footing
The UK ETDA names eight trade documents that can now be electronic. The eUCP supports electronic presentation under a credit.
Summary
Agree the document list early, keep every paper consistent, and the bank's check runs on a known clock
Shipping documents are the commercial invoice, bill of lading, certificate of origin, insurance certificate and similar papers. The importer needs them to take delivery of the goods. US exports can also need an EEI filing. The Incoterms rules do not say which documents the seller must supply, so the sale contract or the credit sets the list.
Under a letter of credit, banks check the documents against the credit, UCP 600 and ISBP. Each bank has at most five banking days after presentation to decide. A mismatch between the documents and the credit is a discrepancy, and it can lead the bank to refuse payment.
Related guides: Incoterms, the bill of lading, letters of credit, documentary collections, know your customer in trade finance and electronic bills of lading. Instrument cards: letter of credit (sight), confirmed letter of credit, documentary collection, documents against payment (D/P) and documentary collection, documents against acceptance (D/A). Every term is defined in the Trade Finance Glossary.
For questions on how these shifts affect existing or planned trade finance exposures, contact the Ossiano Research Desk.
Sources
- International Chamber of Commerce (ICC), UCP 600 rules text, ICC Digital Library, 2007. Supports: definitions of presentation, complying presentation and banking day (article 2); the examination period of at most five banking days following the day of presentation (article 14(b)); the single notice of refusal stating each discrepancy (article 16(c)(ii)).
- International Chamber of Commerce, International Standard Banking Practice (ISBP), ICC Knowledge 2 Go, 2023. Supports: ISBP 2023 edition (P821E) and its scope, read with UCP 600.
- UK legislation (legislation.gov.uk), Electronic Trade Documents Act 2023, section 1, 2023. Supports: the eight example trade documents in section 1(2); in force September 20, 2023.
- US International Trade Administration, Common Export Documents, February 12, 2025. Supports: commercial invoice as a legal document between exporter and buyer; straight and negotiable bills of lading; certificates of origin and their validation; the EEI filing threshold of over $2,500 per Schedule B number.
- US International Trade Administration, Trade Finance Guide: A Quick Reference for US Exporters (2022 edition), July 2022. Supports: definition of shipping documents (page 6); discrepancies that may negate payment to the exporter (Chapter 4, page 10).
- US International Trade Administration, Know Your Incoterms, undated; accessed September 30, 2026. Supports: Incoterms rules do not specify the documents the seller must provide, and do not cover the method or timing of payment.
- UK Supreme Court, Taurus Petroleum Ltd v State Oil Marketing Company [2017] UKSC 64, October 25, 2017. Supports: UCP 600 article 18, a commercial invoice must appear to have been issued by the beneficiary (para 19).
- eCFR (US Government Publishing Office), 15 CFR 730.1, What these regulations cover, September 24, 2026. Supports: the EAR citation, issued by BIS, covering exports, reexports and activities.
- Bureau of Industry and Security, US Department of Commerce, EAR Table of Contents, September 29, 2026. Supports: EAR parts 730 to 774, ending with the Commerce Control List.
- International Chamber of Commerce, ICC's new rules on documentary credits now available, December 4, 2006. Supports: UCP 600 implementation on July 1, 2007.
- International Chamber of Commerce (ICC), eUCP, ICC Publication No. 823E, rules PDF, March 2022. Supports: eUCP allows presentation of electronic records, alone or with paper documents (article e1, page 4).
- ICC Digital Library, ICC Banking Commission 2026-27 Action Plan next steps, July 31, 2026. Supports: the UCP/ISBP Action Plan 2026-2027 emphasis on clarification rather than a UCP 600 revision.
- Uniform Law Commission and American Law Institute (UCC text hosted by Cornell LII), UCC 1-201, General definitions, undated; accessed September 29, 2026. Supports: definition of bill of lading (UCC 1-201(b)).
- legislation.gov.uk (UK Parliament), Carriage of Goods by Sea Act 1992, section 1, 1992. Supports: definition of sea waybill (section 1(3)).
- US Court of Appeals for the Fifth Circuit, Voest-Alpine Trading USA Corp v Bank of China, No 01-20363, April 23, 2002. Supports: US$1.2 million credit under UCP 500; an ineffective refusal notice forfeited the bank's right to refuse the documents.
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