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Field 53a: Reimbursing Bank

By
Ozgur Eker (CDCS)
-
0

What is 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 authorized 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 is an optional field.

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.
  • 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.

MT 700
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.

Field 49: Confirmation Instructions

By
Ozgur Eker (CDCS)
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0

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 is a mandatory field.

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.
  • 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.
  • a confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the credit.

MT 700
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.

Field 48: Period for Presentation

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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.

MT 700
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.

Field 71B: Charges

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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.

A credit or amendment should not stipulate that the advising to a beneficiary is conditional upon the receipt by the advising bank or second advising bank of its charges.

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

MT 700
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.

Field 47A: Additional Conditions

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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 carefully examine the additional conditions section.

The issuing banks state special requirements regarding the requested documents under this field such as signature requirements, attestation requirements, date requirements etc…

If there is any unclear article exists under the additional conditions field, please do not hesitate to contact the issuing bank for further clarification.

Examples:

  • All documents must be dated and signed.
  • All documents must indicate the beneficiary’s name.
  • Bill of lading bearing charges additional to freight mentioned on articles 26(c) of UCP 2007 Revision Publication 600 prohibited.
  • L/C reference no TF1808669450 must be indicated on all documents except proforma invoice.

MT 700
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)”.

Field 46A: Documents Required

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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.

MT 700
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 ‘+’.

Field 45A: Description of Goods and/or Services

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

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”).

MT 700
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.

Field 44D: Shipment Period

By
Ozgur Eker (CDCS)
-
0

What is Field 44D: Shipment Period?

Field 44D: Shipment Period is a field in MT 700 swift message type that is used to specify the period of time during which the goods are to be loaded on board/despatched/taken in charge.

This is an optional field.

Either field Field 44C: Latest Date of Shipment or Field 44D: Shipment Period, but not both, may be present.

Usually issuing banks prefer to use Field 44C: Latest Date of Shipment, but not Field 44D: Shipment Period.

Shipment period will apply only to the presentations that contain at least one transport document as described in the latest version of the UCP.

Please be careful that below documents are not considered as a transport document according to the 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).

MT 700
Field 44D: Shipment Period:
DEFINITION
This field specifies the period of time during which the goods are to be loaded on board/despatched/taken in charge.

Field 44C: Latest Date of Shipment

By
Ozgur Eker (CDCS)
-
0

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 is an optional field.

Date must be a valid date expressed as YYMMDD.

Latest date of shipment will apply only to the presentations that contain at least one transport document as described in the latest version of the UCP.

Please be careful that below documents are not considered as a transport document according to the 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).

If a presentation contains a transport document, then the goods must be shipped before the latest date of shipment and presentation must be completed within the presentation period stated in the credit.

If a presentation does not contain a transport document, then the latest date of shipment and presentation period should not used.

In any event, documents must be presented not later than the expiry date for presentation as stated in the credit.

MT 700
Field 44C: Latest Date of Shipment:
DEFINITION
This field specifies the latest date for loading on board/dispatch/taking in charge.

Field 44B: Place of Final Destination/Place of Delivery

By
Ozgur Eker (CDCS)
-
0

What is Field 44B: Place of Final Destination/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 is an optional field.

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.

MT 700
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.

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