UCP 600 · Article 14(c)

Letter of credit fee calculator

Know the credit's cost and document deadline before you sign.

Enter the fees from each bank's tariff and the shipment date to get every charge split between buyer and seller, and the last day to present under the 21 day rule.

Last updated 2026-09-28. Math runs in your browser, no data leaves your computer.

The credit

Use the amount and validity from the draft credit or the bank's application form. All fees are in the same currency as the credit, so convert any tariff quoted in another currency before you type it in.

Pick the currency the credit is issued in, because the fees are charged against that amount.

Take the face value from field 32B of the credit, since the percentage fees are worked out on it.

Count from the issue date to the expiry date, because issuance and confirmation are charged for each period the credit is open.

Bank fees from your tariffs

Every bank sets its own prices, so there are no default rates here. Leave a line blank if that bank or that charge is not part of your credit, and set the payer on each line to match the charges clause of the credit.

Issuance (issuing bank)

Copy the rate, the period it covers and the minimum from the issuing bank's tariff. The tool applies the minimum to each period, so if your bank charges it once, enter the full validity as the period.

Confirmation (confirming bank)

Leave these blank for an unconfirmed credit, because confirmation is a separate price that the confirming bank quotes against the issuing bank's risk.

The advising bank charges this when it passes the credit on to the seller, so take it from that bank's tariff.

Each change to dates, amount or documents is a new amendment, and the issuing and advising banks may both charge for it.

This is charged when the documents are paid or negotiated, and the tool assumes one drawing for the full credit amount.

Banks usually deduct this from the payment when the documents do not comply, so enter one if you want to see what a late or wrong set costs.

Add the small charges from every bank here, because they are often billed on top of the headline fees.

Presentation deadline

Add the dates to see the last day the documents can reach the bank. Leave the stated period blank if the credit says nothing, and the tool uses the 21 calendar days from UCP 600 article 14(c).

Use the on board date on the bill of lading, since the count starts from the date of shipment.

Take it from field 31D of the credit, because no presentation can be later than expiry.

Enter the period only when the credit states one in field 48, since a blank means the 21 day rule applies.

Before the booking, screen the name on the invoice. Shipment pre-check is on the paid plans, from USD 59 a month.

General guidance only. Verify against the cited primary sources before you commit to a shipment, declaration, or contract.

How the fees and the deadline are worked out

Issuance and confirmation are charged for each period the credit is open, so the tool counts the periods in the validity, rounds up, and charges the larger of the rate on the credit amount or your minimum for each one. The negotiation fee is the rate on one full drawing or the minimum, whichever is higher, and the flat fees are added as entered.

For the deadline, ICC Academy's summary of UCP 600 article 14(c) is that documents must be presented within a maximum of 21 calendar days after the date of shipment, but in any event no later than the expiry date of the credit. The tool adds 21 days, or the period you entered from the credit, to the shipment date and then takes whichever comes first, that date or expiry.

The dates are calendar days, so weekends and holidays count. ICC sells the full UCP 600 text, and your bank's copy governs if anything here reads differently.

Worked example. Documents that missed day 21

The booking. A seller ships under a sight credit that expires on 30 April 2026 and states no presentation period, and the bill of lading shows goods on board on 3 March 2026. With almost two months until expiry, sending the originals to the bank by ordinary post looks fine on paper.

The failure. The set reaches the negotiating bank on 28 March, which is 25 days after shipment. Under article 14(c) the last day was 24 March, so the presentation is late even though the credit is still open, and the bank marks it discrepant, charges the discrepancy fee from its tariff and waits for the buyer to accept. The choice is the usual one: hope the buyer waives it, or get the documents in on time.

The fix. On the next shipment the seller runs the on board date through this tool the day the bill of lading is issued, sees 24 March as the deadline, and couriers the set so it lands with days to spare. The presentation complies, no discrepancy fee comes off the proceeds, and the bank pays after its check.

Want to read each field of the credit before you accept it, with the UCP 600 article it maps to? The LC terms decoder walks through the MT700 field by field.

Frequently asked

How much does a letter of credit cost?

There is no single price, because every bank publishes its own tariff for issuance, advising, confirmation, amendments, negotiation and discrepancies. Issuance and confirmation are usually quoted as a percentage per period with a minimum, and the rest as flat charges or a percentage of the drawing. Ask each bank on the credit for its tariff in writing, enter the numbers here, and the tool adds them up by who pays.

What is the 21 day rule for presenting documents under a letter of credit?

ICC Academy summarises UCP 600 article 14(c) this way: documents must be presented within a maximum of 21 calendar days after the date of shipment, and in any event no later than the expiry date of the credit. If the credit states its own presentation period, that period applies. A late presentation is discrepant, so the bank can refuse it or charge a discrepancy fee while it asks the buyer for a waiver.

How long does the bank have to check the documents?

Under UCP 600 sub-article 14(b), banks have up to five banking days after the day of presentation to decide whether it complies. Plan that time into your cash flow, because the money does not move until the check is done.

Who pays the confirmation fee?

Whoever the credit and the sales contract say pays it, so read the charges field before you accept the credit. ICC Academy notes that under UCP 600 sub-article 37(c) a bank that instructs another bank is liable for that bank's charges, which is why a confirming bank acting on a CONFIRM instruction can claim its fee from the issuing bank if the beneficiary refuses to pay.

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Sourzi shows what official files say. It is not customs or legal advice. For a binding answer, ask a licensed customs broker, a CBP ruling or an Australian Border Force Tariff Advice.

File dates and links are on Data sources.