Swift Messages – Page 2 – Letter of Credit Consultancy Services

MT 742 Reimbursement Claim

Ozgur Eker (CDCS) MT 742 Reimbursement Claim, Swift Messages 8 October 20186 April 2019MT 742 Reimbursement Claim, Swift, Swift Messages

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 742 Reimbursement Claim?

MT 742 is a swift message type that is sent by the paying/negotiating bank to the bank authorized to reimburse the Sender for its payments/negotiations.

It is used to claim reimbursement of payment(s) or negotiation(s) under a documentary credit, as relevant to the reimbursing bank.

On below table you can find detailed explanations of the fields used under MT 742 Reimbursement Claim swift messages.

MT 742 Reimbursement Claim

Status	Tag	Field Name
M	20	Claiming Bank's Reference
M	21	Documentary Credit Number
O	31C	Date of Issue
M	52a	Issuing Bank
M	32B	Principal Amount Claimed
O	33B	Additional Amount Claimed as Allowed for in Excess of Principal Amount
M	71B	Charges
M	34a	Total Amount Claimed
O	57a	Account With Bank
O	58a	Beneficiary Bank
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

Sample: MT 742 Reimbursement Claim SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 742
Receiver : OELBATSW
Message Text
20 : Claiming Bank’s Reference
LC543217890
21 : Documentary Credit Number
IM-DOC 123/2563789
31C : Date of Issue
130622
52A : Issuing Bank
ITSLBE55
32B : Principal Amount Claimed
EUR45000
71B : Charges
/COMM/EUR300,
34B : Total Amount Claimed
EUR45300
57A : Account With Bank
ROTTNL2A
58A : Beneficiary Bank
/700-122433 ROTTNL55
End of Message Text/Trailer

MT 740 Authorisation to Reimburse

Ozgur Eker (CDCS) MT 740 Authorisation to Reimburse, Swift Messages 8 October 20186 April 2019MT 740 Authorisation to Reimburse, Swift, Swift Messages

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.

What is MT 740 Authorisation to Reimburse?

MT 740 is a special swift message type that is sent by the issuing bank to the reimbursing bank.

It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit.

The MT 740 authorizes the reimbursing bank to debit the account of the Sender, or one of the Sender’s branches if so indicated, for reimbursements effected in accordance with the instructions in the MT 740.

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 740 Authorisation to Reimburse

Status	Tag	Field Name
M	20	Documentary Credit Number
O	25	Account Identification
M	40F	Applicable Rules
O	31D	Date and Place of Expiry
O	58a	Negotiating Bank
O	59	Beneficiary
M	32B	Credit Amount
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
M	41a	Available With ... By ...
O	42C	Drafts at ...
O	42a	Drawee
O	42M	Mixed Payment Details
O	42P	Deferred Payment Details
O	71A	Reimbursing Bank's Charges
O	71B	Other Charges
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

MT 740 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 58a or 59, but not both, may be present.

Sample: MT 740 Authorisation to Reimburse SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 740
Receiver : OELBATSW
Message Text
20 : Documentary Credit Number
LC543217890
40F : Applicable Rules
URR LATEST VERSION
32B : Credit Amount
USD45000
41A : Available With … By …
NOMISESW BY ACCEPTANCE
71A : Reimbursing Bank’s Charges
CLM
72 : Sender to Receiver Information
RESTRICTED TO CLAIMING BANK’S ACCEPTANCE COMMISSION
End of Message Text/Trailer

MT 734 Advice of Refusal

Ozgur Eker (CDCS) MT 734 Advice of Refusal, Swift Messages 8 October 20186 April 2019MT 734 Advice of Refusal, Swift, Swift Messages

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.

What is MT 734 Advice of Refusal?

MT 734 message is sent by the issuing bank to the bank from which it has received documents related to a documentary credit.

It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.

It is used to advise the Receiver that the Sender considers the documents, as they appear on their face, not to be in accordance with the terms and conditions of the credit and that, consequently, it refuses them for the discrepancies stated.

The Sender also provides the Receiver with details regarding the disposal of the documents.

This message type may also be used for claiming a refund.

MT 734 Advice of Refusal

Status	Tag	Field Name
M	20	Sender's TRN
M	21	Presenting Bank's Reference
M	32A	Date and Amount of Utilisation
O	73	Charges Claimed
O	33a	Total Amount Claimed
O	57a	Account With Bank
O	72	Sender to Receiver Information
M	77J	Discrepancies
M	77B	Disposal of Documents
		O : Optinal M : Mandatory

MT 734 Advice of Refusal Network Validated Rules

C1 If field 73 is present, field 33a must also be present.
C2 The currency code in the amount fields 32A and 33a must be the same.

Sample: MT 734 Advice of Refusal SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 734
Receiver : OELBATSW
Message Text
20 : Sender’s TRN
EXP54321
21 : Presenting Bank’s Reference
IMP145322
32A : Date and Amount of Utilisation
130921GBP100000
73 : Charges Claimed
YOUR CHARGES GBP 100, CABLE GBP30, INTEREST GBP20,
33A : Total Amount Claimed
130927GBP100150
77J : Discrepancies
PARTIAL SHIPMENT EFFECTED ORIGINAL COMMERCIAL INVOICE NOT PRESENTED
77B : Disposal of Documents
/HOLD/
End of Message Text/Trailer

MT 732 Advice of Discharge

Ozgur Eker (CDCS) MT 732 Advice of Discharge, Swift Messages 8 October 20186 April 2019MT 732 Advice of Discharge, Swift, Swift Messages

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.

What is MT 732 Advice of Discharge?

This message is sent by the issuing bank to the paying/negotiating or accepting bank.

It may also be sent by the paying/accepting/negotiating bank to the bank from which it has received documents.

It is used to advise the Receiver that the documents received with discrepancies have been taken up.

MT 732 Advice of Discharge

Status	Tag	Field
M	20	Sender's TRN
M	21	Presenting Bank's Reference
M	30	Date of Advice of Payment/Acceptance/ Negotiation
M	32B	Amount of Utilisation
O	72Z	Sender to Receiver Information
		M = Mandatory, O = Optional

MT 730 Acknowledgement

Ozgur Eker (CDCS) MT 730 Acknowledgement, Swift Messages 8 October 20186 April 2019MT 730 Acknowledgement, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Receiver's Reference
O	25	Account Identification
M	30	Date of Message Being Acknowledged
O	32a	Amount of Charges
O	57a	Account With Bank
O	71B	Charges
O	72	Sender 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

Ozgur Eker (CDCS) MT 720 Transfer of a Documentary Credit, Swift Messages 7 October 20186 April 2019MT 720 Transfer of a Documentary Credit, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	27	Sequence of Total
M	40B	Form of Documentary Credit
M	20	Transferring Bank's Reference
M	21	Documentary Credit Number
O	31C	Date of Issue
M	40E	Applicable Rules
M	31D	Date and Place of Expiry
O	52a	Issuing Bank of the Original Documentary Credit
O	50B	Non-Bank Issuer of the Original Documentary Credit
O	51a	Applicant Bank
M	50	First Beneficiary
M	59	Second Beneficiary
M	32B	Currency Code, Amount
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
M	41a	Available With ... By ...
O	42C	Drafts at ...
O	42a	Drawee
O	42M	Mixed Payment Details
O	42P	Deferred Payment Details
O	43P	Partial Shipments
O	43T	Transshipment
O	44A	Place of Taking in Charge/Dispatch from .../ Place of Receipt
O	44E	Port of Loading/Airport of Departure
O	44F	Port of Discharge/Airport of Destination
O	44B	Place of Final Destination/For Transportation to.../ Place of Delivery
O	44C	Latest Date of Shipment
O	44D	Shipment Period
O	45A	Description of Goods and/or Services
O	46A	Documents Required
O	47A	Additional Conditions
O	71B	Charges
O	48	Period for Presentation
M	49	Confirmation Instructions
O	78	Instructions to the Paying/Accepting/Negotiating Bank
O	57a	'Advise Through' Bank
O	72	Sender 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

Ozgur Eker (CDCS) MT 710 Advice of a Third Bank's or a Non-Bank's Documentary Credit, Swift Messages 6 October 20186 April 2019MT 710 Advice of a Third Bank's or a Non-Bank's Documentary Credit, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	27	Sequence of Total
M	40B	Form of Documentary Credit
M	20	Sender's Reference
M	21	Documentary Credit Number
O	23	Reference to Pre-Advice
O	31C	Date of Issue
M	40E	Applicable Rules
M	31D	Date and Place of Expiry
O	52a	Issuing Bank
O	50B	Non-Bank Issuer
O	51a	Applicant Bank
M	50	Applicant
M	59	Beneficiary
M	32B	Currency Code, Amount
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
M	41a	Available With ... By ...
O	42C	Drafts at ...
O	42a	Drawee
O	42M	Mixed Payment Details
O	42P	Deferred Payment Details
O	43P	Partial Shipments
O	43T	Transshipment
O	44A	Place of Taking in Charge/Dispatch from .../ Place of Receipt
O	44E	Port of Loading/Airport of Departure
O	44F	Port of Discharge/Airport of Destination
O	44B	Place of Final Destination/For Transportation to.../ Place of Delivery
O	44C	Latest Date of Shipment
O	44D	Shipment Period
O	45A	Description of Goods and/or Services
O	46A	Documents Required
O	47A	Additional Conditions
O	71B	Charges
O	48	Period for Presentation
M	49	Confirmation Instructions
O	53a	Reimbursing Bank
O	78	Instructions to the Paying/Accepting/Negotiating Bank
O	57a	'Advise Through' Bank
O	72	Sender 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

Ozgur Eker (CDCS) MT 707 Amendment to a Documentary Credit, Swift Messages 6 October 20186 April 2019MT 707 Amendment to a Documentary Credit, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Receiver's Reference
O	23	Issuing Bank's Reference
O	52a	Issuing Bank
O	31C	Date of Issue
O	30	Date of Amendment
O	26E	Number of Amendment
M	59	Beneficiary (before this amendment)
O	31E	New Date of Expiry
O	32B	Increase of Documentary Credit Amount
O	33B	Decrease of Documentary Credit Amount
O	34B	New Documentary Credit Amount After Amendment
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
O	44A	Place of Taking in Charge/Dispatch from .../ Place of Receipt
O	44E	Port of Loading/Airport of Departure
O	44F	Port of Discharge/Airport of Destination
O	44B	Place of Final Destination/For Transportation to.../ Place of Delivery
O	44C	Latest Date of Shipment
O	44D	Shipment Period
O	79	Narrative
O	72	Sender 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

Ozgur Eker (CDCS) MT 705 Pre-Advice of a Documentary Credit, Swift Messages 6 October 20186 April 2019MT 705 Pre-Advice of a Documentary Credit, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	27	Sequence of Total
M	40A	Form of Documentary Credit
M	20	Documentary Credit Number
M	31D	Date and Place of Expiry
M	50	Applicant
M	59	Beneficiary
M	32B	Currency Code, Amount
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
M	41a	Available With ... By ...
O	44A	Place of Taking in Charge/Dispatch from .../ Place of Receipt
O	44E	Port of Loading/Airport of Departure
O	44F	Port of Discharge/Airport of Destination
O	44B	Place of Final Destination/For Transportation to.../ Place of Delivery
O	44C	Latest Date of Shipment
O	44D	Shipment Period
O	45A	Description of Goods and/or Services
O	57a	'Advise Through' Bank
O	79	Narrative
O	72	Sender 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

Ozgur Eker (CDCS) MT 700 Issue of a Documentary Credit, Swift Messages 5 October 20186 February 2025MT 700 Issue of a Documentary Credit, Swift, Swift Messages

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.