By Charlotte GAUCHON
23 March 2025
A poorly verified documentary credit can turn a promising international transaction into a legal nightmare. Document review is the critical stage where everything can change. In my practice as a solicitor specialising in international banking law, this moment of verification crystallises the tensions between importers, exporters and banking institutions. A minor discrepancy in a shipping date or a mismatch between documents can block a payment of several million euros. Let's take a look at the challenges of document verification, the pitfalls to avoid and the possible remedies in the event of a dispute. The principle of strict document compliance Legal basis for flawless compliance Documentary credit is based on a fundamental principle: the total independence between the banking transaction and the underlying commercial contract. This autonomy requires meticulous verification of documents, regardless of the actual execution of the commercial transaction. Article 4 of the Uniform Rules and Customs (URC 600) of the International Chamber of Commerce...
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