Filed Under (Miscellaneous) by Mason Pan on May-2-2007

Common Fields In A Documentary Credit (D/C)

Documentary Credit (D/C) is also called Letter of Credit (L/C). MT700/MT701 is standardised message formats to issue of a Documentary Credit.

The common fields in MT700/MT701 are as follows:

Field:20 L/C No. (Mandatory)
L/C No. is assigned by the issuing bank

Field:23 Reference To Pre-Advise (Optional)

Field:27 Sequence Of Total (Mandatory)
The page number of total pages in a L/C

Field:31C Issue Date (Optional)
The date the letter of credit is issued . If filed 31C has not been listed, then the Issue Date of the L/C is the date of sending SWIFT message.

Field:31D Date And Place Of Expiry (Mandatory)
The date the letter of credit expires.

Field:32B Currency / Amount (Mandatory)
The currency and value of the Credit

Field:39A Percentage Credit Amount Tolerance (Optional)
If field 39A is used, field 39B must not be used.

Field:39B Maximum Credit Amount (Optional)
If field 39B is used, field 39A must not be used.

Field:39C Additional Amounts Covered (Optional)
Additional amounts covered (like insurance expenses, interest, transportation expenses… )

Field:40A Form Of Doc Credit (Mandatory)
Irrevocable and/or transferable
There 6 conditions :
1.IRREVOCABLE
2.REVOCABLE
3.IRREVOCABLE TRANSFERABLE
4.REVOCABLE TRANSFERABLE
5.IRREVOCABLE STANDBY
6.REVOCABLE STANDBY

Field:41A Available With …By (41A or 41D is required)
1. Nominate a bank for payment;
2. 5 payment methods: BY PAYMENT;BY ACCEPTANCE; BY NEGOTIATION; BY DEF PAYMENT; BY MIXED PAYMENT.
3. If the L/C is freely negotiable, the filed 41D is used instead of 41A. Ex.: “ANY BANK IN CHINA BY NEGOTIATION”.

Field:42C Drafts At (Optional)
At Sight or days after sight for payment
When used, fields 42C and 42A must both be present.

Field:42A Drawee (Optional)
Bank the draft is drawn on
When used, fields 42C and 42A must both be present.

Field:42M Mixed Payment Details (Optional)

Field:42P Deferred Payment Details (Optional)

Field:43P Partial Shipments (Optional)
Partial shipments allowed or not allowed

Field:43T Transshipment (Optional)
Transshipments allowed or not allowed

Field:44A Loading on Board / Dispatch / Taking in Charge at / From Commercial port loading from (Optional)

Field:44B For Transport To Destination commercial port (Optional)

Field:44C Latest Shipment Date Last date shipment letter of credit is valid for (Optional)
Either field 44C or 44D, but 44C and 44D can not be presented both (towood.com).

Field:44D Shipment Period (Optional)
Either field 44C or 44D, but 44C and 44D can not be presented both (towood.com).

Field:45A Description Of Goods And/Or Services (Optional)
Goods description

Field:46A Documents Required (Optional)
Documents required for payment

Field:47A Additional Conditions (Optional)
Additional requirements of the letter of credit

Field:48 Period For Presentation Of Documents (Optional)
Number of days after shipment allowed for document presentation

Field:49 Confirmation Instructions (Mandatory)
Confirmation by the paying bank is allowed or not allowed .
There are 3 conditions:
1. CONFIRM – the receiver is requested to confirm the LC
2. MAY ADD – the receiver may add its confirmation to the LC
3. WITHOUT – the receiver is not requested to confirm the LC

Field:50 Applicant (Mandatory)
The Applicant (usually the buyer) of the Letter of Credit.

Field:51A Applicant Bank (Optional)

Field:53A Reimbursement Bank (Optional)
Paying bank to negotiating bank

Field:57A “Advise Through” Bank (Optional)

Field:59 Beneficiary (Mandatory)
The Beneficiary (usually the seller) of the Letter of Credit.

Field:71B Charges (Optional)
Applicant and Beneficiary responsibility for bank charges

Field:72 Sender To Receiver Information Send and Receive information (Optional)

Field:78 Instructions To Pay / Accept / Negotiating Bank Instructions to paying, accepting, or negotiating bank (Optional)
Some other common fields in MT707 (for L/C amendment) are as follows

Field:21 Receiver’s Reference (Mandatory)

Field:26E Number Of Amendments (Optional)

Field:30 Date Amended (Optional)

Field:31E New Date OF Expiry (Optional)

Field:32B Increase (or Decrease) of L/C Amount (Optional)

Field:34B New L/C Amount Aftet Amendment (Optional)

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