Is a combined commercial invoice and packing list ideal for use with a letter of credit?

A combined commercial invoice and packing list is typically not ideal for use with a letter of credit because letters of credit often require separate documents to ensure compliance with specific terms and conditions. Each document serves a distinct purpose: the commercial invoice provides details of the sale transaction, while the packing list outlines the content and packing of the shipment.

Letters of credit are designed to protect both the buyer and seller by requiring that specific documents be presented to the bank in order to receive payment. Banks scrutinize these documents closely to verify that they align with the terms set out in the letter of credit. Using a combined document may create confusion or complicate the verification process, as it does not clearly delineate the necessary details that need to be confirmed by the banks.

While some situations might allow for a combined document if explicitly authorized by the buyer, this is not the standard practice. Therefore, relying on a combined invoice and packing list can introduce risks and increase the likelihood of discrepancies, making it less favorable in this context.