MT 700 LC Format Specifications

MT 700 LC Format Specifications

M 27 Sequence of Total
1/1
M 40A Form of Documentary Credit
Field 40A: Form of Documentary Credit
This field specifies the type of credit.
Codes : One of the following codes must be used
IRREVOCABLE The documentary credit is irrevocable.
REVOCABLE The documentary credit is revocable.
IRREVOCABLE TRANSFERABLE The documentary credit is irrevocable and transferable.
REVOCABLE TRANSFERABLE The documentary credit is revocable and transferable.
IRREVOCABLE STANDBY The standby letter of credit is irrevocable.
REVOCABLE STANDBY The standby letter of credit is revocable.
IRREVOC TRANS STANDBY The standby letter of credit is irrevocable and transferable.
Sample Field 40A: Form of Documentary Credit
M 20 Documentary Credit Number
Field 20: Documentary Credit Number
USAGE RULES
This field must not start or end with a slash ‘/’ and must not contain two consecutive slashes ‘//’.
Field 20: Documentary Credit Number
This field specifies the documentary credit number which has been assigned by the Sender.
Issuing banks and confirming banks must understand that absense of letter of credit numbers on the documents is not a valid ground for a refusal.
It should be pointed out that the request for insertion of letter of credit numbers is usually at the instigation of the issuing bank to facilitate the collation of documents when one or more go astray.
The ICC has commented several times in the past that a refusal based on the absence of a L/C number on a document, where requested in the L/C, is not grounds for refusal.
Sample Field 20: Documentary Credit Number
 
Field 23: Reference to Pre-Advice
USAGE RULES
This field must contain the code PREADV followed by a slash ‘/’ and a reference to the pre-advice, eg, by date.
Field 23: Reference to Pre-Advice :
This field specifies if the documentary credit has been pre-advised.
A preliminary advice of the issuance of a credit or amendment (“pre-advice”) shall only be sent if the issuing bank is prepared to issue the operative credit or amendment. An issuing bank that sends a pre-advice is irrevocably committed to issue the operative credit or amendment, without delay, in terms not inconsistent with the pre-advice.
Sample Field 23: Reference to Pre-Advice
O 31C Date of Issue
MT 700
Field 31C: Date of Issue
USAGE RULES
The absence of this field implies that the date of issue is the date this message is sent.
This field specifies the date on which the issuing bank (Sender) considers the documentary credit as being issued.
Date must contain a valid date expressed as YYMMDD.
An issuing bank is irrevocably bound to honour as of the time it issues the credit. The commitment of the issuing bank to honour begins with the issue of the credit.
Sample Field 31C: Date of Issue
M 40E Applicable Rules
Add +++
Field 40E: Applicable Rules
USAGE RULES
Subfield 2 of field 40E, ie, “/”35x, is only allowed when subfield 1 of this field consists of OTHR.
M 31D: Date and Place of Expiry
USAGE RULES
Date must contain a valid date expressed as YYMMDD.
This field specifies the latest date for presentation under the documentary credit and the place where documents may be presented.
A credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation.
The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank. A place for presentation other than that of the issuing bank is in addition to the place of the issuing bank.
Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date.
Sample 31D: Date and Place of Expiry
O 51a Applicant Bank
Field 51a: Applicant Bank :
This field specifies the bank of the applicant customer, if different from the issuing bank.
Identifier Code The BIC must be a SWIFT registered BIC address, either connected or non-connected.
Identifier Code The BIC must not be a BEI. Please refer to the latest version of the BIC Directory – Corporations for more information about BEIs. This error code applies to all types of BICs referenced in a FIN message including SWIFT BICs, non-SWIFT BICs, Masters, Synonyms, Live destinations and Test & Training destinations.
This field should be used when applicant’s bank could not issue the letter of credit by itself but have the letter of credit issued to another bank. This may be the case in some situations such as if the applicant bank has no SWIFT arrangement or applicant bank is not allowed to issue a letter of credit by itself due to corporate rules or government regulations.
Sample Field 51a: Applicant Bank
M 50 Applicant
Field 50: Applicant :
This field specifies the party on behalf of which the documentary credit is being issued.
Applicant means the party on whose request the credit is issued.
A credit must not be issued available by a draft drawn on the applicant.
A bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant.
The applicant shall be bound by and liable to indemnify a bank against all obligations and responsibilities imposed by foreign laws and usages.
Sample Field 50: Applicant
This field specifies the party on behalf of which the documentary credit is being issued. Applicant is the importer of the underlying contract.
M 59 Beneficiary
Field 59: Beneficiary:
This field specifies the party in favour of which the documentary credit is being issued.
Beneficiary means the party in whose favour a credit is issued.
Presenter means a beneficiary, bank or other party that makes a presentation.
A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.
Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date.
Sample Field 59: Beneficiary
MT 700
Field 59: Beneficiary :
This field specifies the party in favour of which the documentary credit is being issued. Beneficiary is the exporter of the underlying contract.
M 32B: Currency Code, Amount
Field 32B: Currency Code, Amount:
This field contains the currency code and amount of the documentary credit.
Currency must be a valid ISO 4217 currency code.
The integer part of Amount must contain at least one digit. The decimal comma ‘,’ is mandatory and is included in the maximum length. The number of digits following the comma must not exceed the maximum number allowed for the specified currency.
A commercial invoice must be made out in the same currency as the credit.
The insurance document must indicate the amount of insurance coverage and be in the same currency as the credit.
The words “about” or “approximately” used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to which they refer.
Sample Field 32B: Currency Code, Amount
O 39A : Percentage Credit Amount Tolerance
What is Field 39A: Percentage Credit Amount Tolerance?
Field 39A: Percentage Credit Amount Tolerance is a field in MT 700 swift message type that is used to specify the tolerance relative to the documentary credit amount as a percentage plus and/or minus that amount.
Field 39A: Percentage Credit Amount Tolerance:
This field specifies the tolerance relative to the documentary credit amount as a percentage plus and/or minus that amount.
The words “about” or “approximately” used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to which they refer.
A tolerance not to exceed 5% more or 5% less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit.
Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed, provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not reduced or that sub-article 30 (b) is not applicable. This tolerance does not apply when the credit stipulates a specific tolerance or uses the expressions referred to in sub-article 30 (a).
Sample Field 39A: Percentage Credit Amount Tolerance
MT 700
Field 39A: Percentage Credit Amount Tolerance :
This field specifies the tolerance relative to the documentary credit amount as a percentage plus and/or minus that amount.
FORMAT (Tolerance 1)(Tolerance 2)
Tolerance 1 specifies a positive tolerance, the Tolerance 2 specifies a negative tolerance
Note : Either field 39A or 39B, but not both, may be present.
O 39B Maximum Credit Amount
What is Field 39B: Maximum Credit Amount?
Field 39B: Maximum Credit Amount is a field in MT 700 swift message type that is used to further qualifies the documentary credit amount.
Field 39B: Maximum Credit Amount:
This field further qualifies the documentary credit amount.
A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount in excess of that permitted by the credit.
The amount in words must accurately reflect the amount in figures if both are shown, and indicate the currency, as stated in the credit.
The amount must agree with that of the invoice, unless as a result of UCP 600 sub-article 18(b).
Sample Field 39B: Maximum Credit Amount
MT 700
Field 39B: Maximum Credit Amount :
CODES : The following code must be used. NOT EXCEEDING Qualifies the documentary credit amount.
Note : Either field 39A or 39B, but not both, may be present.
O 39C : Additional Amounts Covered
What is Field 39C: Additional Amounts Covered?
Field 39C: Additional Amounts Covered is a field in MT 700 swift message type that is used to specify any additional amounts covered such as insurance, freight, interest, etc.
Field 39C: Additional Amounts Covered :
This field specifies any additional amounts covered such as insurance, freight, interest, etc.
This is an optional field. In most letters of credit we do not see this field.
If used field 39c : Additional Amount Covered, must be added to the amount in field Field 32B: Currency Code, Amount to state the maximum amount covered by the letter of credit.
This field can be used to reach a CIF amount from the FOB amount as well as determination of the interest rate of the time draft or usance bill of exchange.
Sample Field 39C: Additional Amounts Covered
MT 700
Field 39C: Additional Amounts Covered :
This field specifies any additional amounts covered such as insurance, freight, interest, etc.
M 41a : Available With … By …
What is Field 41a: Available With … By …?
Field 41a: Available With … By … is a field in MT 700 swift message type that is used to identify the bank with which the credit is available (the place for presentation) and an indication of how the credit is available.
Field 41a: Available With … By … :
This field identifies the bank with which the credit is available (the place for presentation) and an indication of how the credit is available.
FORMAT
Option A : (Identifier Code BIC )
BY ACCEPTANCE
BY DEF PAYMENT
BY MIXED PYMT
BY NEGOTIATION
BY PAYMENT
Option D : (Name and Address)
BY ACCEPTANCE
BY DEF PAYMENT
BY MIXED PYMT
BY NEGOTIATION
BY PAYMENT
Sample Field 41a: Available With … By …
MT 700
Field 41a: Available With … By … :
USAGE RULES
For credits subject to eUCP:
• If presentation of both electronic records and paper documents is allowed, the place for presentation of the electronic records (ie, the electronic address to which presentation must be made) as well as the place for presentation of the paper documents must be specified in field 47A and not in this field.
• If presentation of only electronic records is allowed, the place for presentation of the electronic records (ie, the electronic address to which presentation must be made) must be specified in field 47A and not in this field. If the credit is to be freely negotiable by any bank, option D must be used with the phrase Any bank in … (city or country). If the credit is to be freely negotiable by any bank anywhere in the world, an indication of country is not required. When Code contains either BY DEF PAYMENT or BY MIXED PYMT, the specific details of the payment terms must be specified in field 42P and 42M respectively. When Code contains BY PAYMENT, this should be understood to mean payment at sight.
O 42C : Drafts at …
What is Field 42C: Drafts at …?
Field 42C: Drafts at … is a field in MT 700 swift message type that is used to specify the tenor of drafts to be drawn under the documentary credit.
Field 42C: Drafts at … :
This field specifies the tenor of drafts to be drawn under the documentary credit.
If a draft is drawn at a tenor other than sight, or other than a certain period after sight, it must be possible to establish the maturity date from the data in the draft itself.
If the tenor refers to xxx days after the bill of lading date, the on board date is deemed to be the bill of lading date even if the on board date is prior to or later than the date of issuance of the bill of lading.
In all cases the drawee bank must advise the maturity date to the presenter. The calculation of tenor and maturity dates, as shown above, would also apply to credits designated as being available by deferred payment, i.e., where there is no requirement for a draft to be presented by the beneficiary.
Sample Field 42C: Drafts at …
MT 700
Field Field 42C: Drafts at … :
This field specifies the tenor of drafts to be drawn under the documentary credit.
CONDITIONAL RULES
C2 When used, fields 42C and 42a must both be present
C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
O 42a : Drawee
What is Field 42a: Drawee?
Field 42a: Drawee is a field in MT 700 swift message type that is used to identify the drawee of the drafts to be drawn under the documentary credit.
This field identifies the drawee of the drafts to be drawn under the documentary credit.
A credit must not be issued available by a draft drawn on the applicant.
A credit may be issued requiring a draft drawn on the applicant as one of the required documents, but must not be issued available by drafts drawn on the applicant.
The draft must be drawn on the party stated in the credit.
The draft must be drawn by the beneficiary.
Sample Field 42a: Drawee
MT 700
Field 42a: Drawee :
USAGE RULES
The drawee must be a bank. If drafts on the applicant are required, they are to be listed as documents in field 46A.
The Party Identifier must not be present.
CONDITIONAL RULES
Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed
O 42M :Mixed Payment Details
What is Field 42M: Mixed Payment Details?
Field 42M: Mixed Payment Details is a field in MT 700 swift message type that is used to specify the payment dates, amounts and/or method for their determination in a documentary credit which is available by mixed payment.
This field specifies the payment dates, amounts and/or method for their determination in a documentary credit which is available by mixed payment.
Mixed payment is not covered under UCP 600 with a direct referance but parties can use mixed payments under letters of credit.
Mixed payment example is as follows:
* %25 proforma invoice will be paid via advance payment outside l/c, %75 proforma invoice amount will be paid by at sight letter of credit.
Sample Field 42M: Mixed Payment Details
MT 700
USAGE RULES
This field specifies the payment dates, amounts and/or method for their determination in a documentary credit which is available by mixed payment.
CONDITIONAL RULES
Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
O 42P:  Deferred Payment Details
What is Field 42P: Deferred Payment Details?
Field 42P: Deferred Payment Details is a field in MT 700 swift message type that is used to specify the payment date or method for its determination in a documentary credit which is available by deferred payment only.
This field specifies the payment date or method for its determination in a documentary credit which is available by deferred payment only.
A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation.
By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank.
Sample Field 42P: Deferred Payment Details
DEFINITION
This field specifies the payment date or method for its determination in a documentary credit which is available by deferred payment only.
CONDITIONAL RULES
Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
O 43P:  Partial Shipments
What is Field 43P: Partial Shipments?
Field 43P: Partial Shipments Details is a field in MT 700 swift message type that is used to specify whether or not partial shipments are allowed under the documentary credit.
This field specifies whether or not partial shipments are allowed under the documentary credit.
According to letter of credit rules partial drawings or shipments are allowed unless otherwise stated on the credit.
A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.
Sample Field 43P: Partial Shipments
DEFINITION
This field specifies whether or not partial shipments are allowed under the documentary credit.
O 43T: Transshipment
What is Field 43T: Transshipment?
Field 43T: Transshipment is a field in MT 700 swift message type that is used to specify whether or not transshipment is allowed under the documentary credit.
This field specifies whether or not transshipment is allowed under the documentary credit.
According to letter of credit rules, transhipment means unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes of transport) during the carriage from the place of dispatch, taking in charge or shipment to the place of final destination stated in the credit.
A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading.
A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading.
Sample Field 43T: Transshipment
DEFINITION
This field specifies whether or not transshipment is allowed under the documentary credit.
O 44A:  Place of Taking in Charge/Dispatch from …/Place of Receipt
What is Field 44A: Place of Taking in Charge/Dispatch from…/Place of Receipt?
Field 44A: Place of Taking in Charge/Dispatch from …/Place of Receipt is a field in MT 700 swift message type that is used to specify the place of taking in charge (in case of a multimodal transport document), the place of receipt (in case of a road, rail or inland waterway transport document or a courier or expedited delivery service document), the place of dispatch or the place of shipment to be indicated on the transport document.
This field specifies the place of taking in charge (in case of a multimodal transport document), the place of receipt (in case of a road, rail or inland waterway transport document or a courier or expedited delivery service document), the place of dispatch or the place of shipment to be indicated on the transport document.
Place of taking in charge => multimodal transport document, combined bill of lading
Place of receipt => road transport document, rail transport document, inland waterway transport document, courier receipt or expedited delivery service document
Note : Remember these are examples from swift standards. First leg of the multimodal transport document could start from a port or an airport. Do not constrain yourselves with these limited samples.
Sample Field 44A: Place of Taking in Charge/Dispatch from …/Place of Receipt
DEFINITION
This field specifies the place of taking in charge (in case of a multimodal transport document), the place of receipt (in case of a road, rail or inland waterway transport document or a courier or expedited delivery service document), the place of dispatch or the place of shipment to be indicated on the transport document.
O 44E: Port of Loading/Airport of Departure
What is Field 44E: Port of Loading/Airport of Departure?
Field 44E: Port of Loading/Airport of Departure is a field in MT 700 swift message type that is used to specify the port of loading or airport of departure to be indicated on the transport document.
This field specifies the port of loading or airport of departure to be indicated on the transport document.
A bill of lading, however named, must appear to indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit.
An air transport document, however named, must appear to indicate the airport of departure and the airport of destination stated in the credit.
Sample Field 44E: Port of Loading/Airport of Departure
DEFINITION
This field specifies the port of loading or airport of departure to be indicated on the transport document.
O 44F: Port of Discharge/Airport of Destination
What is Field 44F: Port of Discharge/Airport of Destination?
Field 44F: Port of Discharge/Airport of Destination is a field in MT 700 swift message type that is used to specify the port of discharge or airport of destination to be indicated on the transport document.
This field specifies the port of discharge or airport of destination to be indicated on the transport document.
A bill of lading, however named, must appear to indicate shipment from the port of loading to the port of discharge stated in the credit.
An air transport document, however named, must appear to indicate the airport of departure and the airport of destination stated in the credit.
Sample Field 44F: Port of Discharge/Airport of Destination
DEFINITION
This field specifies the port of discharge or airport of destination to be indicated on the transport document.
O 44B: Place of Final Destination/For Transportation to
…/Place of Delivery
What is Field 44B: Place of Final Destination/For Transportation to …/Place of Delivery?
Field 44B: Place of Final Destination/For Transportation to …/Place of Delivery is a field in MT 700 swift message type that is used to specify the final destination or place of delivery to be indicated on the transport document.
This field specifies the final destination or place of delivery to be indicated on the transport document.
A transport document covering at least two different modes of transport (multimodal or combined transport document), however named, must appear to indicate the place of dispatch, taking in charge or shipment and the place of final destination stated in the credit.
A road, rail or inland waterway transport document, however named, must appear to indicate the place of shipment and the place of destination stated in the credit.
Sample Field 44B: Place of Final Destination/For Transportation to …/Place of Delivery
DEFINITION
This field specifies the final destination or place of delivery to be indicated on the transport document.
O 44C: Latest Date of Shipment
What is Field 44C: Latest Date of Shipment?
Field 44C: Latest Date of Shipment is a field in MT 700 swift message type that is used to specify the latest date for loading on board/dispatch/taking in charge.
This field specifies the latest date for loading on board/dispatch/taking in charge.
Date must be a valid date expressed as YYMMDD.
Latest date of shipment will apply only to the transport documents stated in the latest version of the UCP. Please be careful that below documents are not transport documents as per UCP 600.
Delivery Order,
Forwarder’s Certificate of Receipt,
Forwarder’s Certificate of Shipment,
Forwarder’s Certificate of Transport,
Forwarder’s Cargo Receipt
Mate’s Receipt
Therefore, these documents will be examined in the same manner as other documents for which there are no specific provisions in UCP 600, i.e., under sub-article 14(f). In any event, documents must be presented not later than the expiry date for presentation as stated in the credit.
Sample Field 44C: Latest Date of Shipment
DEFINITION
This field specifies the latest date for loading on board/dispatch/taking in charge.
O 44D:  Shipment Period
O 45A: Description of Goods and/or Services
What is Field 45A: Description of Goods and/or Services?
Field 45A: Description of Goods and/or Services is a field in MT 700 swift message type that contains a description of the goods and/or services.
This field contains a description of the goods and/or services.
According to current letter of credit rules the description of the goods, services or performance in a commercial invoice must correspond with that appearing in the credit.
According to current letter of credit rules, in documents other than the commercial invoice, the description of the goods, services or performance, if stated, may be in general terms not conflicting with their description in the credit.
As per ISBP 2007, if a trade term is part of the goods description in the credit, or stated in connection with the amount, the invoice must state the trade term specified, and if the description provides the source of the trade term, the same source must be identified (e.g., a credit term “CIF Singapore Incoterms 2000” would not be satisfied by “CIF Singapore Incoterms”).
Sample Field 45A: Description of Goods and/or Services
DEFINITION
This field contains a description of the goods and/or services.
USAGE RULES
Terms such as FOB, CIF, etc. should be specified in this field.
To cater for lengthy documentary credits, up to three MT 701s may be sent in addition to an MT 700. However, field 45a may appear in only one message, ie, either in the MT 700 or in one MT 701. This means that in any documentary credit, there is a limit of 100 lines of 65 characters to specify the description of goods and/or services.
Some examples of valid combinations:
• MT 700 contains field 45A, 46A, and 47A.
• MT 700 contains field 45A; the subsequent MT 701 contains fields 46B and 47B.
O 46A: Documents Required
What is Field 46A: Documents Required?
Field 46A: Documents Required is a field in MT 700 swift message type that contains a description of any documents required.
This field contains a description of any documents required.
According to current letter of credit rules banks deal with documents and not with goods, services or performance to which the documents may relate.
Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered.
According to current letter of credit rules a nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation.
Sample Field 46A: Documents Required
DEFINITION
This field contains a description of any documents required.
USAGE RULES
When the ultimate date of issue of a transport document is specified, it is to be specified with the relative document in this field.
For credits subject to eUCP, the format in which electronic records are to be presented must be specified in this field.
To cater for lengthy documentary credits, up to three MT 701s may be sent in addition to an MT 700.
However, field 46a may appear in only one message, ie, either in the MT 700 or in one MT 701.
This means that in any documentary credit, there is a limit of 100 lines of 65 characters to specify the documents required.
The specification of each new item should begin on a new line, preceded by the sign ‘+’.
O 47A:  Additional Conditions
What is Field 47A: Additional Conditions?
Field 47A: Additional Conditions is a field in MT 700 swift message type that contains a description of further conditions of the documentary credit.
This field contains a description of further conditions of the documentary credit.
According to current letter of credit rules complying presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice.
Beneficiaries should study additional conditions very well. Banks write down special requirements under this field such as signature requirements, approval requirements, date requirements etc…
If there is any unclear article exist under additional conditions field please do not hesitate to contact issuing bank for further clarification.
Sample Field 47A: Additional Conditions
DEFINITION
This field contains a description of further conditions of the documentary credit.
USAGE RULES
In case the documentary credit is subject to any rules for which no code words are provided in field 40E, further details should be specified in this field.
To cater for lengthy documentary credits, up to three MT 701s may be sent in addition to an MT 700. However, field 47a may appear in only one message, ie, either in the MT 700 or in one MT 701. This means that in any documentary credit, there is a limit of 100 lines of 65 characters to specify the additional conditions.
Where applicable, for credits subject to eUCP:
If presentation of both electronic records and paper documents is allowed, the place for presentation of the electronic records (ie, the electronic address to which presentation must be made) as well as the place for presentation of the paper documents must be specified in this field.
If presentation of only electronic records is allowed, the place for presentation of the electronic records (ie, the electronic address to which presentation must be made) must be specified in this field.
If not already part of the original documentary credit, the advising bank, ie, the receiver of the message, must provide the beneficiary or another advising bank with the electronic address of the issuing bank. Furthermore, the advising bank must provide the beneficiary or another advising bank with the electronic address where they wish the electronic records to be presented.
In case the electronic address contains the “@” sign, the latter should be replaced by “(AT)”. In case the electronic address contains the “_”, the latter should be replaced by “(UNDERSCORE)”.
O 71B :Charges
What is Field 71B: Charges?
Field 71B: Charges is a field in MT 700 swift message type that is used to specify charges to be borne by the beneficiary.
This field may be used only to specify charges to be borne by the beneficiary.
FORMAT
Option B (Narrative)
In addition to narrative text, the following line formats may be used:
(Code)(Currency)(Amount)(Narrative)
CODES One or more of the following codes may be used, followed by the currency code and amount:
AGENT Agent’s commission
COMM Our commission
CORCOM Our correspondent’s commission
DISC Commercial discount
INSUR Insurance premium
POST Our postage
STAMP Stamp duty
TELECHAR Teletransmission charges
WAREHOUS Wharfing and warehouse
Sample Field 71B: Charges
DEFINITION
This field may be used only to specify charges to be borne by the beneficiary.
USAGE RULES
In the absence of this field, all charges, except negotiation and transfer charges, are to be borne by the applicant.
Any code used in this field must be between slashes and must appear at the beginning of a line.
Narrative text must not begin with a slash and, if used, must begin on a new line and be the last information in the field.
O 48: Period for Presentation
What is Field 48: Period for Presentation?
Field 48: Period for Presentation is a field in MT 700 swift message type that is used to specify the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation.
This field specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation.
According to current letter of credit rules except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date.
According to current letter of credit rules a presentation including one or more original transport documents subject to articles 19, 20, 21, 22, 23, 24 or 25 must be made by or on behalf of the beneficiary not later than 21 calendar days after the date of shipment as described in these rules, but in any event not later than the expiry date of the credit.
Sample Field 48: Period for Presentation
DEFINITION
This field specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation.
USAGE RULES
The period of time is expressed in number of days.
The absence of this field means that the presentation period is 21 days, where applicable.
M 49 : Confirmation Instructions
What is Field 49: Confirmation Instructions?
Field 49: Confirmation Instructions is a field in MT 700 swift message type that contains confirmation instructions for the Receiver.
This field contains confirmation instructions for the Receiver.
According to current letter of credit rules confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation.
According to current letter of credit rules confirming bank means the bank that adds its confirmation to a credit upon the issuing bank’s authorization or request. As a result banks can not add their confirmations to the letter of credit without having a confirmation request by the issuing banks.
According to current letter of credit rules a confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the credit.
Sample Field 49: Confirmation Instructions
DEFINITION
This field contains confirmation instructions for the Receiver.
CODES
One of the following codes must be used.
CONFIRM The Receiver is requested to confirm the credit.
MAY ADD The Receiver may add its confirmation to the credit.
WITHOUT The Receiver is not requested to confirm the credit.
O 53a: Reimbursing Bank
What is Field 53a: Reimbursing Bank ?
Field 53a: Reimbursing Bank is a field in MT 700 swift message type that specify the name of the bank which has been authorised by the Sender to reimburse drawings under the documentary credit. This may be a branch of the Sender or the Receiver, or an entirely different bank.
This field specifies the name of the bank which has been authorised by the Sender to reimburse drawings under the documentary credit. This may be a branch of the Sender or the Receiver, or an entirely different bank.
According to current letter of credit rules if a credit states that reimbursement is to be obtained by a nominated bank (“claiming bank”) claiming on another party (“reimbursing bank”), the credit must state whether the reimbursement is subject to the ICC rules for bank-to- bank reimbursements in effect on the date of issuance of the credit or not.
According to current letter of credit rules a reimbursing bank’s charges are for the account of the issuing bank. However, if the charges are for the account of the beneficiary, it is the responsibility of an issuing bank to so indicate in the credit and in the reimbursement authorization. If a reimbursing bank’s charges are for the account of the beneficiary, they shall be deducted from the amount due to a claiming bank when reimbursement is made. If no reimbursement is made, the reimbursing bank’s charges remain the obligation of the issuing bank.
Sample Field 53a: Reimbursing Bank
DEFINITION
This field specifies the name of the bank which has been authorised by the Sender to reimburse drawings under the documentary credit. This may be a branch of the Sender or the Receiver, or an entirely different bank.
USAGE RULES
With the exception of a credit valid for negotiation, if there is a single direct account relationship, in the currency of the credit, between the Sender and the Receiver, the absence of field 53a means that this account relationship will be used for reimbursement.
O 78 : Instructions to the Paying/Accepting/Negotiating
Bank
What is Field 78: Instructions to the Paying/Accepting/Negotiating Bank ?
Field 78: Instructions to the Paying/Accepting/Negotiating Bank is a field in MT 700 swift message type that specify instructions to the paying, accepting or negotiating bank. It may also indicate if pre-notification of a reimbursement claim or pre-debit notification to the issuing bank is required.
This field specifies instructions to the paying, accepting or negotiating bank. It may also indicate if pre-notification of a reimbursement claim or pre-debit notification to the issuing bank is required.
According to current letter of credit rules a bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant.
According to current letter of credit rules an issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out, even if it has taken the initiative in the choice of that other bank.
According to current letter of credit rules a bank instructing another bank to perform services is liable for any commissions, fees, costs or expenses (“charges”) incurred by that bank in connection with its instructions. If a credit states that charges are for the account of the beneficiary and charges cannot be collected or deducted from proceeds, the issuing bank remains liable for payment of charges.
Sample Field 78: Instructions to the Paying/Accepting/Negotiating Bank
DEFINITION
This field specifies instructions to the paying, accepting or negotiating bank. It may also indicate if pre-notification of a reimbursement claim or pre-debit notification to the issuing bank is required.
USAGE RULES
When used to indicate pre-notification of a reimbursement claim or pre-debit notification to the issuing bank is required, the number and type, ie, banking or calendar, of days within which the issuing bank has to be notified should also be indicated.
O 57a : ‘Advise Through’ Bank
What is Field 57a: ‘Advise Through’ Bank ?
Field 57a: ‘Advise Through’ Bank is a field in MT 700 swift message type that identifies the bank, if different from the Receiver, through which the documentary credit is to be advised/confirmed to the beneficiary.
This field identifies the bank, if different from the Receiver, through which the documentary credit is to be advised/confirmed to the beneficiary.
According to current letter of credit rules advising bank means the bank that advises the credit at the request of the issuing bank.
According to current letter of credit rules a credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.
According to current letter of credit rules an advising bank may utilize the services of another bank (“second advising bank”) to advise the credit and any amendment to the beneficiary. A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received.
Sample Field 57a: ‘Advise Through’ Bank
DEFINITION
This field identifies the bank, if different from the Receiver, through which the documentary credit is to be advised/confirmed to the beneficiary.
O 72 : Sender to Receiver Information
What is Field 72: Sender to Receiver Information ?
Field 72: Sender to Receiver Information is a field in MT 700 swift message type that specifies additional information for the Receiver.
This field specifies additional information for the Receiver.
According to current letter of credit rules advising bank means the bank that advises the credit at the request of the issuing bank.
According to current letter of credit rules a credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.
According to current letter of credit rules an advising bank may utilize the services of another bank (“second advising bank”) to advise the credit and any amendment to the beneficiary. A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received.
Sample Field 72: Sender to Receiver Information
DEFINITION
This field specifies additional information for the Receiver
CODES
One or more of the following codes may be used:
PHONBEN Please advise/contact beneficiary by phone.
TELEBEN Please advise the beneficiary by the most efficient means of telecommunication.
USAGE RULES
Any code must be between slashes and must appear at the beginning of a line.
Narrative text must not begin with a slash and, if used, must begin on a new line and be the last information in the field.
Instance Type and Transmission ———————-
Original received from SWIFT
Priority/Delivery : Normal
Message Output Reference : 1225 121016XXXXXXXXX5657939061
Correspondent Input Reference : 1225 121016XXXXXXXXX1178375172
———————– Message Header ———————————
Swift OUTPUT FIN 700 Issue of a Documentary Credit
Sender : ARABBANKXXX
ARAB BANK
(COMMERCIAL BRANCH)
MANAMA BH
Receiver : TRADEBANKXXX
TRADE BANK
(ALL TURKEY OFFICES)
ISTANBUL TR
———————– Message Text ———————————-
27: Sequence of Total
1/1
40A: Form of Documentary Credit
IRREVOCABLE
20: Documentary Credit Number
2012AML201203366
31C: Date of Issue
121016
40E: Applicable Rules
UCPURR LATEST VERSION
31D: Date and Place of Expiry
130106-TURKEY
50: Applicant
BAHRAIN MANUFACTURING COMPANY W.L.L
P.O. BOX 30000,
KINGDOM OF BAHRAIN
59: Beneficiary – Name & Address
INTERNATIONAL IMPORT COMPANY LTD, STI.
(FULL BENEFS. NAME AND ADDRESS UNDER FIELD 47A ITEM NO.6)
32B: Currency Code, Amount
Currency : USD (US DOLLAR)
Amount : #310.000,00#
39B: Maximum Credit Amount
NOT EXCEEDING
41A: Available With…By… – BIC
TRADEBANKXXX
BY PAYMENT
43P: Partial Shipments
NOT ALLOWED
43T: Transhipment
ALLOWED
44E: Port of Loading/Airport of Departure
ANY TURKISH PORT
44F: Port of Discharge/Airport of Destination
KHALIFA BIN SALMAN PORT
44C: Latest Date of Shipment
121215
45A: Description of Goods &/or Services
CRUSHING PLANT. AS PER PROFORMA INVOICE NO.:P-111-7 R02 DATED 03/07/2012
CFR, BAHRAIN.
46A: Documents Required
1. SIGNED COMMERCIAL INVOICE IN 1 ORIGINAL + 2 COPIES INDICATING DELIVERY TERMS.
2. FULL SET OF CLEAN ON BOARD BILL OF LADING ISSUED OR ENDORSED TO THE ORDER OF ARAB BANK PLC, NOTIFY APPLICANT SHOWING FREIGHT PREPAID AND SHOWING FULL NAME AND ADDRESS OF THE SHIPPING COMPANY AGENT OR HIS REPRESENTATIVE IN BAHRAIN.
3. A CERTIFICATE ISSUED BY THE VESSEL OWNERS/CAPTAIN/ CARRIER OR BY ONE OF THEIR AGENTS STATING THAT THE CARRYING VESSEL IS SUBJECT TO THE INTERNATIONAL SAFETY MANAGEMENT CODE (ISM) AND INTERNATIONAL SHIPPING AND PORT SECURITY SAFETY CODE (ISPS).
4. CERTIFICATE OF ORIGIN STATING THAT GOODS ARE OF TURKISH ORIGIN ISSUED BY A CHAMBER OF COMMERCE SHOWING NAME AND ADDRESS OF MANUFACTURERS.
5. PACKING LIST IN 1 ORIGINAL + 2 COPIES.
47A: Additional Conditions
(1) HONOUR/NEGOTIATION OF DOCUMENTS UNDER RESERVE OR AGAINST INDEMNITY OR GUARANTEE IS PROHIBITED.
(2) DISCREPANCY FEE FOR USD 75.- (OR EQUIVALENT IN L/C CURRENCY)PLUS ALL RELATIVE SWIFT/TLX CHARGES WILL BE DEDUCTED FROM DOCUMENTS VALUE FOR EACH PRESENTATION OF DISCREPANT DOCUMENTS UNDER THIS CREDIT, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY.
(3) ALL REQUIRED DOCUMENTS INCLUDING TRANSPORT DOCUMENTS MUST BE DATED BUT NOT DATED PRIOR TO THE ISSUANCE DATE OF THIS CREDIT.
(4) ALL REQUIRED DOCUMENTS INCLUDING DRAFTS – IF ANY – MUST INDICATE OUR CREDIT NUMBER.
(5) FULL BENEFICIARYS NAME AND ADDRESS: INTERNATIONAL IMPORT COMPANY LTD, STI. BOGAZICI SOKAK.NO:12 KAVAKLIDERE ANKARA ANKARA, TURKEY,
(6) ALL PARTIES TO THIS TRANSACTION ARE ADVISED THAT WHERE THE U.S. EU, UN, AND OTHER GOVERNMENT AND/OR REGULATORY AUTHORITIES IMPOSE SPECIFIC SANCTIONS AGAINST CERTAIN COUNTRIES, ENTITIES AND INDIVIDUALS, BANKS MAY BE UNABLE TO PROCESS A TRANSACTION THAT INVOLVES A BREACH OF SUCH SANCTIONS, AND AUTHORITIES MAY REQUIRE DISCLOSURE OF INFORMATION. ARAB BANK IS NOT LIABLE IF IT, OR ANY OTHER PERSON, FAILS OR DELAYS TO PERFORM THE TRANSACTION, OR DISCLOSES INFORMATION AS A RESULT OF ACTUAL OR APPARENT BREACH OF SUCH SANCTIONS.
KINDLY ACKNOWLEDGE RECEIPT AND ADVISE US BY SWIFT THE DATE OF THIS CREDIT HAS BEEN ADVISED TO AND RECEIVED BY BENEFICIARY.
71B: Charges
ALL CHARGES AND COMMISSIONS OUTSIDE BAHRAIN INCLUDING COURIER, CONFIRMATION AND REIMBURSEMENT CHARGES SHOULD BE PAID BY BENEFICIARY.
48: Period for Presentation
PLS SEE FIELD 47A ITEM NO.15
49: Confirmation Instructions
CONFIRM
53A: Reimbursing Bank – BIC
CHASUS33XXX JPMORGAN CHASE BANK, N.A. NEW YORK,NY US
78: Instruction to Paying/Accepting/Negotiating Bank
YOU ARE KINDLY REQUESTED TO FORWARD ORIGINAL SET OF DOCUMENTS AND DUPLICATES DIRECTLY TO US IN TWO CONSECUTIVE SETS BY SPECIAL COURIER TO OUR ADDRESS : TRADE FINANCE LETTER OF CREDIT PROCESSING CENTER, DUBAI, U.A.E. FOR THE VALUE OF DOCUMENTS WHICH STRICTLY COMPLY WITH CREDIT TERMS, PLS REIMBURSE ON OUR BAHRAIN BRANCHES CENTER, USD A/C WITH JPMORGAN CXXSE BANK N.A., NEW YORK UNDER ATHENTICATED SWIFT ADVICE TO US .
57D: `Advise Through` Bank -Name&Addr
MEESNL2A
———————– Message Trailer ——————————
{MAC:00000000}
{CHK:XXXXXXXX}