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MT 707 Amendment to a Documentary Credit :












Swift is a provider of secure message platform for financial institutions mainly for banks. Swift messages send 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 send a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly advising banks send their 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 paymentdocumentary 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. Issuing banks or advising banks use MT 707 Amendment to a Documentary Credit swift message type to inform the receiver about 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 detailed explanations of fields used under MT 707 swift messages




























MT 707 Amendment to a Documentary Credit rules in trade finance:
  • 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.
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What does MT 707 Amendment to a Documentary Credit swift message mean? 
MT 707 is a type of swift message which is used by banks when issuing a amendment of a letter of credit. MT 707 swift message is sent by the issuing bank to the advising bank or advising bank to another advising bank. You can find detailed information about MT707 and its sub-fields on this page. keep reading...



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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