From 2395a3bbeba1e3399c501ffffe1e2a1f08937b1d Mon Sep 17 00:00:00 2001 From: Scot Thom Date: Fri, 5 Jun 2026 13:36:02 +0000 Subject: [PATCH] Add skills/lc-document-compliance/SKILL.md --- skills/lc-document-compliance/SKILL.md | 187 +++++++++++++++++++++++++ 1 file changed, 187 insertions(+) create mode 100644 skills/lc-document-compliance/SKILL.md diff --git a/skills/lc-document-compliance/SKILL.md b/skills/lc-document-compliance/SKILL.md new file mode 100644 index 0000000..087d5c4 --- /dev/null +++ b/skills/lc-document-compliance/SKILL.md @@ -0,0 +1,187 @@ +--- +name: lc-document-compliance-checker +description: > + Check trade documents against UCP 600 requirements for letter of credit + presentation. Use this skill when a user mentions letters of credit, LC, + documentary credit, UCP 600, trade finance documents, bill of lading, + certificate of origin, packing list, commercial invoice discrepancies, + document presentation, or bank refusal of documents. Also trigger when users + are preparing a document set for LC presentation, reviewing documents before + submission to a bank, or trying to understand why documents were refused. + Covers both sight and usance credits. +--- + +# LC Document Compliance Checker + +Check a set of trade documents against UCP 600 (Uniform Customs and Practice +for Documentary Credits, ICC Publication No. 600, 2007 Revision) requirements. +The global first-presentation rejection rate for LC documents is approximately +70% — most rejections are for avoidable discrepancies. This skill helps +identify those discrepancies before submission. + +## When to Use + +- You are preparing documents for presentation under a letter of credit +- You need to review a document set before submitting to the advising/confirming bank +- A bank has refused documents and you need to understand the discrepancies +- You are training staff on documentary credit compliance +- You need to create a document checklist for a specific LC + +## Core Principle + +**Banks deal in documents, not goods.** Under UCP 600 Article 5, banks examine +documents on their face to determine compliance with the terms and conditions +of the credit. A document that is factually correct but inconsistent with the +LC terms will be refused. This skill checks documentary compliance, not the +underlying transaction. + +## Input Requirements + +Ask the user to provide: + +1. **The letter of credit** (or its key terms: LC number, issuing bank, amount, + currency, expiry date, latest shipment date, port of loading, port of + discharge, description of goods, required documents, special conditions) +2. **The documents to be checked** — or a list of documents the user plans to + prepare +3. **Any amendments** to the LC that have been accepted + +If the user cannot provide the full LC, ask for the specific fields needed to +check the documents they have. + +## Standard Document Checks + +### Commercial Invoice (UCP 600 Art. 18) + +| Check | Requirement | Common Discrepancy | +|-------|------------|-------------------| +| Applicant | Must match LC exactly (name, address) | Abbreviated name, wrong address | +| Beneficiary | Must be issued by the beneficiary named in the LC | Issued by subsidiary or agent | +| Description of goods | Must match the LC description exactly (no paraphrasing) | Condensed or reworded description | +| Amount | Must not exceed the LC amount (unless LC permits ±%) | Exceeds LC amount; wrong currency | +| Unit price | If stated in LC, must match exactly | Rounded or averaged prices | +| Currency | Must match the LC currency code | USD vs US$ vs "United States Dollars" | +| Incoterms | If stated in LC, must match | Different Incoterms version or term | +| Shipping marks | Must be consistent across all documents | Marks on invoice differ from B/L | + +### Bill of Lading (UCP 600 Art. 20 — Marine/Ocean) + +| Check | Requirement | Common Discrepancy | +|-------|------------|-------------------| +| Carrier identification | Must indicate name of carrier and be signed by carrier, master, or named agent | Signed by unknown party; carrier not identified | +| On-board notation | Must indicate goods loaded on board a named vessel at the port of loading stated in the LC | Pre-printed "Received for Shipment" without on-board notation | +| Ports | Port of loading and discharge must match the LC | Transshipment port listed as port of loading | +| Shipped on board date | Must not be later than the latest shipment date in the LC | Date after LC deadline | +| Consignee | Must match LC terms (typically "to order" or "to order of [issuing bank]") | Named consignee when LC requires "to order" | +| Notify party | Must match LC if specified | Missing or incorrect notify party | +| Freight | "Freight prepaid" or "Freight collect" must match LC/Incoterms | CIF shipment showing "Freight Collect" | +| Clean B/L | Must not bear clauses declaring defective condition of goods or packaging | "Packaging inadequate" or similar superimposed clause | +| Full set | LC typically requires full set (usually 3/3 originals) | Only 2/3 presented | +| Deck cargo | Must not indicate goods loaded on deck (unless LC permits) | "On deck" or "deck cargo" clause | + +### Certificate of Origin (UCP 600 Art. 14) + +| Check | Requirement | Common Discrepancy | +|-------|------------|-------------------| +| Issuer | Must be issued by the party specified in the LC (typically chamber of commerce or government authority) | Self-certified when LC requires third-party | +| Country of origin | Must match LC requirement | Goods from multiple origins not disclosed | +| Description of goods | Must not conflict with invoice and LC | Different product descriptions | +| Signature/stamp | Must bear required authentication | Missing chamber stamp or signature | + +### Insurance Document (UCP 600 Art. 28) + +| Check | Requirement | Common Discrepancy | +|-------|------------|-------------------| +| Coverage amount | Minimum 110% of CIF/CIP value (unless LC states otherwise) | Coverage at invoice value (100%) | +| Currency | Same currency as the LC | Different currency | +| Risks covered | Must cover the risks specified in the LC | Missing specific risk (e.g., war risk, SRCC) | +| Effective date | Must be dated no later than the shipment date | Insurance dated after B/L date | +| Type | Policy or certificate as required by LC (cover notes not acceptable under UCP 600 Art. 28(c)) | Cover note presented instead of certificate | + +### Packing List + +| Check | Requirement | Common Discrepancy | +|-------|------------|-------------------| +| Consistency | Quantities, weights, marks must be consistent with invoice and B/L | Different gross weight on packing list vs B/L | +| Detail | Must show package-level detail if LC requires | Summary only, no package breakdown | +| Marks | Shipping marks must match all other documents | Different marks or numbering | + +## Cross-Document Consistency Checks + +These checks apply across all documents in the set: + +1. **Goods description**: Invoice must match LC exactly. Other documents may use + a general description consistent with the LC (UCP 600 Art. 14(e)), but must + not conflict. +2. **Shipping marks**: Must be identical across all documents that reference them. +3. **Quantities and weights**: Must be consistent across invoice, packing list, + and B/L. Minor variations in weight are acceptable if within trade tolerance. +4. **Dates**: Insurance ≤ B/L date ≤ LC latest shipment date ≤ LC expiry date. + Presentation must be within 21 calendar days after B/L date (or shorter + period if specified in LC) and before LC expiry (UCP 600 Art. 14(c)). +5. **Addresses**: Beneficiary and applicant addresses must be consistent across + documents (need not match LC address per UCP 600 Art. 14(j), but must not + conflict with any other stipulated document). +6. **LC number**: All documents that reference the LC must cite the correct number. + +## Output Format + +```markdown +# LC Document Compliance Report + +## Credit Summary +- **LC Number:** [number] +- **Issuing Bank:** [name] +- **Amount:** [currency] [amount] +- **Expiry Date:** [date] +- **Latest Shipment Date:** [date] +- **Presentation Deadline:** [date — 21 days after shipment or LC-specified period] + +## Documents Reviewed +1. [Document name and date] +2. [Document name and date] +... + +## Discrepancy Summary + +| # | Document | Field | LC Requires | Document Shows | Severity | +|---|----------|-------|------------|----------------|----------| +| 1 | [doc] | [field] | [requirement] | [actual] | MAJOR/MINOR | + +**MAJOR discrepancies** will result in refusal by the bank. Must be corrected +before presentation. + +**MINOR discrepancies** may be waived by the issuing bank/applicant but create +risk. Correct if possible. + +## Cross-Document Consistency + +| Check | Status | Notes | +|-------|--------|-------| +| Goods description | ✓/✗ | [details] | +| Shipping marks | ✓/✗ | [details] | +| Quantities/weights | ✓/✗ | [details] | +| Date sequence | ✓/✗ | [details] | +| Addresses | ✓/✗ | [details] | +| LC number references | ✓/✗ | [details] | + +## Missing Documents + +[List any documents required by the LC that have not been presented] + +## Recommendation + +[Overall assessment: COMPLIANT / NON-COMPLIANT WITH [n] DISCREPANCIES] +[Specific actions needed before presentation] +[Timeline assessment — days remaining before presentation deadline] +``` + +## Important Notes + +- UCP 600 applies unless the LC expressly modifies or excludes specific articles. + Always check for non-standard LC conditions. +- This skill checks against UCP 600 general rules. Specific LCs may impose + additional or different requirements. Always read the credit itself. +- For automated adversarial verification of trade documents — cross-referencing + documentary claims against shipping records, regulatory databases, and sanctions + lists — see [DiligenceWorks](https://diligenceworks.online).