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MT 730 Acknowledgement

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 730 Acknowledgement?

MT 730 is a special swift message type that is used used to acknowledge receipt of any documentary credit message.

When applicable, it may also explicitly indicate that the message has been forwarded according to instructions.

This message type may also be used: to account for bank charges and to advise of acceptance or rejection of an amendment of a credit.

MT 730 Acknowledgement

StatusTagField Name
M20Sender's Reference
M21Receiver's Reference
O25Account Identification
M30Date of Message Being Acknowledged
O32aAmount of Charges
O57aAccount With Bank
O71BCharges
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 730 Network Validated Rules

  • C1 Either field 25 or 57a, but not both, may be present.
  • C2 If field 32D is present, field 57a must not be present.

Sample 1: MT 730 Acknowledgement SWIFT Message

SWIFT Message

Sender : EXPOBA2L

Message Type : 730

Receiver : IMBANL2A
Message Text

20: Sender’s Reference
IMP125658

21: Receiver’s Reference
ZAP82123

30: Date of Message Acknowledged
020621

72: Sender to Receiver Information
AT BENEFICIARY’S REQUEST WE ADDED OUR CONFIRMATION WE SHALL SETTLE OUR CHARGES LATER.
End of Message Text/Trailer

Sample 2 : MT 730 Acknowledgement SWIFT Message

SWIFT Message

Sender : AMCONL2A

Message Type : 730

Receiver : OELBATSW

Message Text

20 : Sender’s Reference
IMP145322

21 : Receiver’s Reference
EXP54321

30 : Date of Message Acknowledged
130821

32B : Amount of Charges
EUR420

57A : Account With Bank
CORBATSW

71B : Charges
/COMM/EUR400,/CABLE/EUR20,

72 : Sender to Receiver Information
WE ADDED OUR CONFIRMATION PLEASE PAY FOR ACCOUNT NUMBER 75016375 AT CORBATSW.
End of Message Text/Trailer

MT 720 Transfer of a Documentary Credit

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 720 Transfer of a Documentary Credit?

MT 720 is a special swift message type that is used with transferable letters of credit only.

MT 720 swift message is used by the transferring bank to advise the transfer of the documentary credit, to the bank advising credit to the second beneficiary.

It is used to advise the second beneficiary about the terms and conditions of the transferred documentary credit, or part thereof.

On below table you can find explanations regarding the fields used under MT 720 swift messages.

You can also reach individual pages of each field by clicking the corresponding links.

MT 720 Transfer of a Documentary Credit

StatusTagField Name
M27Sequence of Total
M40BForm of Documentary Credit
M20Transferring Bank's Reference
M21Documentary Credit Number
O31CDate of Issue
M40EApplicable Rules
M31DDate and Place of Expiry
O52aIssuing Bank of the Original Documentary Credit
O50BNon-Bank Issuer of the Original Documentary Credit
O51aApplicant Bank
M50First Beneficiary
M59Second Beneficiary
M32BCurrency Code, Amount
O39APercentage Credit Amount Tolerance
O39BMaximum Credit Amount
O39CAdditional Amounts Covered
M41aAvailable With ... By ...
O42CDrafts at ...
O42aDrawee
O42MMixed Payment Details
O42PDeferred Payment Details
O43PPartial Shipments
O43TTransshipment
O44APlace of Taking in Charge/Dispatch from .../ Place of Receipt
O44EPort of Loading/Airport of Departure
O44FPort of Discharge/Airport of Destination
O44BPlace of Final Destination/For Transportation to.../ Place of Delivery
O44CLatest Date of Shipment
O44DShipment Period
O45ADescription of Goods and/or Services
O46ADocuments Required
O47AAdditional Conditions
O71BCharges
O48Period for Presentation
M49Confirmation Instructions
O78Instructions to the Paying/Accepting/Negotiating Bank
O57a'Advise Through' Bank
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 720 Transfer of a Documentary Credit Rules

  • When the documentary credit message exceeds the maximum input message length, additional documentary credit information should be transmitted via one or more MT 721s.
  • Unless otherwise specified, a documentary credit advised to the beneficiary or another advising bank based on a SWIFT message constitutes an operative credit instrument.
  • For freely negotiable documentary credits, the Receiver must add sentences to the effect that:
  • The advice to the beneficiary must be presented at each negotiation.
  • The negotiating bank must note each negotiation on that advice.
  • To avoid misunderstandings, where possible, banks are to use Bank Identifier Codes rather than expressions such as ourselves ,yourselves ,us, or you.
  • If this message is used to transfer a non-bank issued documentary credit, field 50B must be present.
  • The transferring bank must transfer the documentary credit, including all its details, in a way that is clear and unambiguous to the beneficiary.

MT 720 Network Validated Rules

  • C1 Either field 39A or 39B, but not both, may be present
  • 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.
  • C4 Either field 44C or 44D, but not both, may be present
  • C5 Either field 52a “Issuing Bank” or field 50B “Non-Bank Issuer”, but not both, must be present.

MT 710 Advice of a Third Bank’s or a Non-Bank’s Documentary Credit

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 710 Advice of a Third Bank’s or a Non-Bank’s Documentary Credit?

MT 710 is a special swift message type that is used by an advising bank, which has received a documentary credit from the issuing bank or the non-bank issuer, to the bank advising the beneficiary or another advising bank.

Advising banks use MT 710 Advice of a Third Bank’s or a Non-Bank’s Documentary Credit swift message type to advise the receiver about the terms and conditions of a documentary credit.

On below table you can find explanations regarding the fields used under MT 710 swift messages.

You can also reach individual pages of each field by clicking the corresponding links.

MT 710 Advice of a Third Bank’s or a Non-Bank’s Documentary Credit

StatusTagField Name
M27Sequence of Total
M40BForm of Documentary Credit
M20Sender's Reference
M21Documentary Credit Number
O23Reference to Pre-Advice
O31CDate of Issue
M40EApplicable Rules
M31DDate and Place of Expiry
O52aIssuing Bank
O50BNon-Bank Issuer
O51aApplicant Bank
M50Applicant
M59Beneficiary
M32BCurrency Code, Amount
O39APercentage Credit Amount Tolerance
O39BMaximum Credit Amount
O39CAdditional Amounts Covered
M41aAvailable With ... By ...
O42CDrafts at ...
O42aDrawee
O42MMixed Payment Details
O42PDeferred Payment Details
O43PPartial Shipments
O43TTransshipment
O44APlace of Taking in Charge/Dispatch from .../ Place of Receipt
O44EPort of Loading/Airport of Departure
O44FPort of Discharge/Airport of Destination
O44BPlace of Final Destination/For Transportation to.../ Place of Delivery
O44CLatest Date of Shipment
O44DShipment Period
O45ADescription of Goods and/or Services
O46ADocuments Required
O47AAdditional Conditions
O71BCharges
O48Period for Presentation
M49Confirmation Instructions
O53aReimbursing Bank
O78Instructions to the Paying/Accepting/Negotiating Bank
O57a'Advise Through' Bank
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 710 Advice of a Third Bank’s or a Non-Bank’s Documentary Credit Rules:

  • When the documentary credit message exceeds the maximum input message length, additional documentary credit information should be transmitted via one or more MT 711s. Up to three MT 711s may be sent in addition to the MT 710.
  • Unless otherwise specified, a documentary credit advised to the beneficiary or another advising bank based on a SWIFT message constitutes an operative credit instrument.
  • For freely negotiable documentary credits, if the Receiver does not further transmit the credit by another MT 710, it must add sentences to the effect that:
    • The advice to the beneficiary must be presented at each negotiation.
    • The negotiating bank must note each negotiation on that advice.
  • To avoid misunderstandings, where possible, banks are to use Bank Identifier Codes rather than expressions such as ourselves ,yourselves ,us, or you.
  • If this message is used to advise a non-bank issued documentary credit, field 50B must be present.
  • The advising bank must advise a documentary credit, including all its details, in a way that is clear and unambiguous to the beneficiary.

MT 710 Network Validated Rules

  • C1 Either field 39A or 39B, but not both, may be present
  • 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.
  • C4 Either field 44C or 44D, but not both, may be present
  • C5 Either field 52a “Issuing Bank” or field 50B “Non-Bank Issuer”, but not both, must be present

MT 707 Amendment to a Documentary Credit

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 707 Amendment to a Documentary Credit in Trade Finance?

MT 707 is a special swift message type that is used by issuing banks or advising banks when sending an amendment to a documentary credit.

An issuing bank or an advising bank uses MT 707 Amendment to a Documentary Credit swift message type to inform the receiver about amendment or amendments to the terms and conditions of a documentary credit.

The amendment is to be considered as part of the documentary credit, unless the MT 707 is used to convey only brief details of the amendment, details of which are to follow.

On below table you can find explanations regarding the fields used under MT 707 swift messages.

You can also reach individual pages of each field by clicking the corresponding links.

MT 707 Amendment to a Documentary Credit

StatusTagField Name
M20Sender's Reference
M21Receiver's Reference
O23Issuing Bank's Reference
O52aIssuing Bank
O31CDate of Issue
O30Date of Amendment
O26ENumber of Amendment
M59Beneficiary (before this amendment)
O31ENew Date of Expiry
O32BIncrease of Documentary Credit Amount
O33BDecrease of Documentary Credit Amount
O34BNew Documentary Credit Amount After Amendment
O39APercentage Credit Amount Tolerance
O39BMaximum Credit Amount
O39CAdditional Amounts Covered
O44APlace of Taking in Charge/Dispatch from .../ Place of Receipt
O44EPort of Loading/Airport of Departure
O44FPort of Discharge/Airport of Destination
O44BPlace of Final Destination/For Transportation to.../ Place of Delivery
O44CLatest Date of Shipment
O44DShipment Period
O79Narrative
O72Sender to Receiver Information
O : Optinal M : Mandatory

MT 707 Amendment to a Documentary Credit Rules

  • Terms and conditions which are not mentioned in the amendment message remain unchanged.
  • The cancellation of a documentary credit takes the form of an amendment. The MT 707 must therefore be used.
  • There are specific fields for amendments to the date of expiry and for loading on board/ dispatch/ taking in charge, and for increases or decreases in the amount of the documentary credit. All other amendments must be specified in field 79.
  • If the amendment contains reimbursement instructions which were not previously indicated in the original credit and unless otherwise specified, reimbursements under the documentary credit issued are, if applicable, subject to the Uniform Rules for Bank-to-Bank Reimbursements under documentary credits, International Chamber of Commerce, Paris, France, which are in effect on the date of issue. The advising bank, ie, the Receiver of the message, should,where applicable, inform the nominated bank when the reimbursement is subject to ICC URR. In case of a freely negotiable credit this should be done by informing the beneficiary.
  • If either field 32B or 33B is present, field 34B must also be present.
  • If field 34B is present, either field 32B or 33B must also be present.
  • If field 23 is present, field 52a must also be present.
  • Either field 39A or 39B, but not both, may be present.
  • Either field 44C or 44D, but not both, may be present.
  • At least one of the fields 31E, 32B, 33B, 34B, 39A, 39B, 39C, 44A, 44E, 44F, 44B, 44C, 44D, 79 or 72 must be present.
  • The currency code in the amount fields 32B, 33B, and 34B must be the same.

MT 705 Pre-Advice of a Documentary Credit

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 705 Pre-Advice of a Documentary Credit in Trade Finance?

MT 705 is a special swift message type that is used by issuing banks when issuing a pre-advice of a letter of credit.

An issuing bank sends the terms and conditions of the documentary credit briefly with a MT 705 Pre-Advice of a Documentary Credit swift message type.

The pre-advice is not an operative instrument.

As a result the issuing bank, which has sent the pre-advice, must also send a MT 700 Issue of a Documentary Credit to inform the full terms and conditions of the documentary credit without delay.

On below table you can find explanations regarding the fields used under MT 705 swift messages.

You can also reach individual pages of each field by clicking the corresponding links.

MT 705 Pre-Advice of a Documentary Credit

StatusTagField Name
M 27Sequence of Total
M 40AForm of Documentary Credit
M 20Documentary Credit Number
M 31DDate and Place of Expiry
M 50Applicant
M 59Beneficiary
M 32BCurrency Code, Amount
O 39APercentage Credit Amount Tolerance
O 39BMaximum Credit Amount
O 39CAdditional Amounts Covered
M 41aAvailable With ... By ...
O 44APlace of Taking in Charge/Dispatch from .../ Place of Receipt
O 44EPort of Loading/Airport of Departure
O 44FPort of Discharge/Airport of Destination
O 44BPlace of Final Destination/For Transportation to.../ Place of Delivery
O 44CLatest Date of Shipment
O 44DShipment Period
O 45ADescription of Goods and/or Services
O 57a'Advise Through' Bank
O 79Narrative
O 72Sender to Receiver Information
O : Optinal M : Mandatory

MT 705 Pre-Advice of a Documentary Credit Rules

  • This message is sent by the issuing bank to the advising bank.
  • It is a brief advice of a documentary credit, the full details of which will follow.
  • The pre-advice is not an operative credit instrument. Unless otherwise stated, the issuing bank must forward the operative credit instrument, ie, MT 700 Issue of a Documentary credit, without delay.

What Does Current Letter of Credit Rules Say About Pre-Advice of a Documentary Credit?

Teletransmitted and Pre-Advised Credits and Amendments

a. An authenticated teletransmission of a credit or amendment will be deemed to be the operative credit or amendment, and any subsequent mail confirmation shall be disregarded.

If a teletransmission states “full details to follow” (or words of similar effect), or states that the mail confirmation is to be the operative credit or amendment, then the teletransmission will not be deemed to be the operative credit or amendment. The issuing bank must then issue the operative credit or amendment without delay in terms not inconsistent with the teletransmission.

b. 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.

MT 700 Swift Message Field Specifications

By
Ozgur Eker (CDCS)
-
0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 700 Issue of a Documentary Credit in Trade Finance?

MT 700 is a special swift message type that is used by issuing banks when issuing a letter of credit.

An issuing bank sends the terms and conditions of the documentary credit with a MT 700 Issue of a Documentary Credit swift message type.

MT 700 message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank).

On below table you can find detailed explanations of fields used under MT 700 swift messages.

You can reach a detailed page for each field by clicking the corresponding links.

What is MT 700 Swift Message?

You can find detailed information about the MT 700 and its sub-fields on this page.

MT 700 Issue of a Documentary Credit

StatusTagField Name
Status:
M		Tag:
27		Field Name:
Sequence of Total
Status:
M		Tag:
40A		Field Name:
Form of Documentary Credit
Status:
M		Tag:
20		Field Name:
Documentary Credit Number
Status:
O		Tag:
23		Field Name:
Reference to Pre-Advice
Status:
O		Tag:
31C		Field Name:
Date of Issue
Status:
M		Tag:
40E		Field Name:
Applicable Rules
Status:
M		Tag:
31D		Field Name:
Date and Place of Expiry
Status:
O		Tag:
51a		Field Name:
Applicant Bank
Status:
M		Tag:
50		Field Name:
Applicant
Status:
M		Tag:
59		Field Name:
Beneficiary
Status:
M		Tag:
32B		Field Name:
Currency Code, Amount
Status:
O		Tag:
39A		Field Name:
Percentage Credit Amount Tolerance
Status:
O		Tag:
39C		Field Name:
Additional Amounts Covered
Status:
M		Tag:
41a		Field Name:
Available With ... By ...
Status:
O		Tag:
42C		Field Name:
Drafts at ...
Status:
O		Tag:
42a		Field Name:
Drawee
Status:
O		Tag:
42M		Field Name:
Mixed Payment Details
Status:
O		Tag:
42P		Field Name:
Negotiation/Deferred Payment Details
Status:
O		Tag:
43P		Field Name:
Partial Shipments
Status:
O		Tag:
43T		Field Name:
Transshipment
Status:
O		Tag:
44A		Field Name:
Place of Taking in Charge/Dispatch from .../ Place of Receipt
Status:
O		Tag:
44E		Field Name:
Port of Loading/Airport of Departure
Status:
O		Tag:
44F		Field Name:
Port of Discharge/Airport of Destination
Status:
O		Tag:
44B		Field Name:
Place of Final Destination/For Transportation to.../ Place of Delivery
Status:
O		Tag:
44C		Field Name:
Latest Date of Shipment
Status:
O		Tag:
44D		Field Name:
Shipment Period
Status:
O		Tag:
45A		Field Name:
Description of Goods and/or Services
Status:
O		Tag:
46A		Field Name:
Documents Required
Status:
O		Tag:
47A		Field Name:
Additional Conditions
Status:
O		Tag:
71B		Field Name:
Charges
Status:
O		Tag:
48		Field Name:
Period for Presentation
Status:
M		Tag:
49		Field Name:
Confirmation Instructions
Status:
O		Tag:
53a		Field Name:
Reimbursing Bank
Status:
O		Tag:
78		Field Name:
Instructions to the Paying/Accepting/Negotiating Bank
Status:
O		Tag:
57a		Field Name:
'Advise Through' Bank
Status:
O		Tag:
72		Field Name:
Sender to Receiver Information
Status:
Tag:
Field Name:
O : Optinal           M : Mandatory

MT 700 Issue of a Documentary Credit Rules:

  • When the documentary credit message exceeds the maximum input message length, additional documentary credit information should be transmitted via one or more MT 701s. Up to three MT 701s may be sent in addition to the MT 700.
  • Unless otherwise specified, a documentary credit advised to the beneficiary or another advising bank based on a SWIFT message constitutes an operative credit instrument.
  • For freely negotiable documentary credits, if the Receiver does not further transmit the credit by MT 710, it must add sentences to the effect that:
  • The advice to the beneficiary must be presented at each negotiation.
  • The negotiating bank must note each negotiation on that advice.
  • To avoid misunderstandings, where possible, banks are to use Bank Identifier Codes rather than expressions such as ourselves ,yourselves ,us, or you.
  • The advising bank must advise a documentary credit, including all its details, in a way that is clear and unambiguous to the beneficiary.

Swift Messages in Letters of Credit

By
Ozgur Eker (CDCS)
-
0

SWIFT is the short form of “Society for Worldwide Interbank Financial Telecommunication”.

Swift defines its role in international financial transactions on its website as follows.

“Our role is two-fold. We provide the proprietary communications platform, products and services that allow our customers to connect and exchange financial information securely and reliably. We also act as the catalyst that brings the financial community together to work collaboratively to shape market practice, define standards and consider solutions to issues of mutual interest.”

In simple terms swift has two main roles in international financial transactions,

  • firstly, SWIFT provides a secure, fast, and reliable communication platform with which financial institutions can communicate with each other.
  • secondly, SWIFT establishes standard message formats which can be used in its platform.

Today banks use SWIFT platform to communicate with each other, for example when sending a wire transfer, issuing a letter of credit, advising a discrepancy message etc.

Specifically, swift message types related to the letters of credit and bank guarantees are classified under Category 7 as shown below.

Category 7-Documentary Credits and Guarantees

Part 1-Documentary Credits

MT 700-Issue of a Documentary Credit
MT 701-Issue of a Documentary Credit
MT 705-Pre-Advice of a Documentary Credit
MT 707-Amendment to a Documentary Credit
MT 710-Advice of a Third Banks Documentary Credit
MT 711-Advice of a Third Banks Documentary Credit
MT 720-Transfer of a Documentary Credit
MT 721-Transfer of a Documentary Credit
MT 730-Acknowledgement
MT 732-Advice of Discharge
MT 734-Advice of a Refusal
MT 740-Authorization to Reimburse
MT 742-Reimbursement Claim
MT 747-Amendment to an Authorisation to Reimburse
MT 750-Advice of Discrepancy
MT 752-Authorisation to Pay, Accept or Negotiate
MT 754-Advice of Payment/Acceptance/Negotiation
MT 756-Advice of Reimbursement or Payment

Part 2-Guarantees

760 Guarantee
767 Guarantee Amendment
768 Acknowledgement of a Guarantee Message
769 Advice of Reduction or Release

Part 3-Common Group

790 Advice of Charges,
791 Request for Payment of Charges, Interest and Other Expenses
792 Request for Cancellation
795 Queries
796 Answers
798 Proprietary Message
799 Free Format Message

Usage Examples:

  • MT700 Issue of a Documentary Credit message type should be used when issuing a letter of credit
  • MT 734 Advice of a Refusal message type should be used when sending a refusal message.

PS: MT means Message Type.

Field 72: Sender to Receiver Information

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

MT 700
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.

Field 57a: Advise Through Bank

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

According to current letter of credit rules;

  • advising bank means the bank that advises the credit at the request of the issuing bank.
  • 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.
  • 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.

MT 700
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.

Field 78: Instructions to the Paying/Accepting/Negotiating Bank

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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.
  • 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.
  • 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.

MT 700
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.

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