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 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
|O||23||Issuing Bank's Reference|
|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||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.