Are receipt-for-carriage transport documents acceptable under a letter of credit without explicit L/C terms?

Receipt-for-carriage transport documents typically serve as proof that goods have been accepted by a carrier for transportation. However, under the rules governing letters of credit, these documents are usually not sufficient on their own. Letters of credit establish specific terms and conditions that must be met for the presentation of documents to be accepted. If the letter of credit does not explicitly state that receipt-for-carriage documents are acceptable, then they do not fulfill the requirements for documentary compliance.

The integrity of the letter of credit is built upon the principle of strict compliance, meaning that any deviation from the terms set out in the letter of credit—such as relying solely on receipt-for-carriage transport documents—can result in a refusal to honor the payment. This underscores the importance of having clear and explicit terms in the letter of credit regarding acceptable shipping documents.

In contrast, the options addressing additional documentation, different shipping methods, or a straightforward acceptance imply a flexibility that does not align with the stringent adherence to the terms of a letter of credit. Acceptance would only be granted if the letter of credit itself included statements allowing for such documents, which is typically not the case without clear provisions.