MT 700 Issue of a Documentary Credit

Field 46A: Documents Required

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 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

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 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

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 44D: Shipment Period

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

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 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

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 44B: Place of Final Destination/Place of Delivery

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.

Field 44F: Port of Discharge/Airport of Destination

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 is an optional field.

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.

MT 700
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.

Field 44E: Port of Loading/Airport of Departure

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 is an optional field.

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.

MT 700
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.

Field 44A: Place of Taking in Charge/Dispatch from …/ Place of Receipt

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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.

Note: Above examples are taken from swift standards booklet. Not all multimodal transport documents use “place of taking in charge”, or else not all the road documents use “place of receipt” phrases. Do not assume that this field usage is limited to above examples.

This is an optional field.

MT 700
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.

Field 43T: Transshipment

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 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 is an optional field.

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 transshipped 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.

MT 700
Field 43T: Transshipment:
DEFINITION
This field specifies whether or not transshipment is allowed under the documentary credit.

Field 43P: Partial Shipments

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages , , ,
Field 43P: Partial Shipments

What is Field 43P: Partial Shipments?

Field 43P: Partial Shipments 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 is an optional field.

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.

Codes
Code must contain one of the following codes

ALLOWED Allowed under the documentary credit.
CONDITIONAL Conditional based on conditions specified elsewhere in the message.
NOT ALLOWED Not allowed under the documentary credit.

MT 700
Field 43P: Partial Shipments:
DEFINITION
This field specifies whether or not partial shipments are allowed under the documentary credit.