In documentary credit transactions,documents are crucial. The "documents" in question are those produced or collected by the beneficiary (often the seller) - such as an invoice,packing list or bill of lading. These are to be presented under the documentary credit ultimately for the applicant (the buyer) when he collects the purchased goods from the carrier and clears them through customs.

It is the documents that are required by the documentary credit to be presented. The bank will examine them to determine whether they constitute a complying presentation. It will then act (or make payment) on the basis of that examination.

These documents are sent between the parties via mail,courier or other means.

From time to time an unfortunate situation arises and the documents are lost or delayed in transit. The purpose of this article is to outline the rules that apply in such a situation.