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
|M||27||Sequence of Total|
|M||40A||Form of Documentary Credit|
|M||20||Documentary Credit Number|
|O||23||Reference to Pre-Advice|
|O||31C||Date of Issue|
|M||31D||Date and Place of Expiry|
|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||42M||Mixed Payment Details|
|O||42P||Deferred Payment Details|
|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||45A||Description of Goods and/or Services|
|O||48||Period for Presentation|
|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 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.
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