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SWIFT MT700 Field

Comment and Guidance

:40A: FORM OF DOCUMENTARY CREDIT  

IRREVOCABLE / TRANSFERABLE / STANDBY                      

UCP 600 no longer covers revocable credits. As such, it is expected that the term ‘irrevocable' will always be relevant. Additional need for ‘transferable' will derive from the buyer/seller agreement. 

:20: DOCUMENTARY CREDIT NUMBER    

[DOCUMENTARY CREDIT NUMBER]

Issuing Bank unique reference number.

:31C: DATE OF ISSUE               

YYMMDD

Date that the issuing bank considers the documentary credit to have been issued.

:40E: APPLICABLE RULES

1 EUCP LATEST VERSION

or

2 EUCPURR LATEST VERSION

1 The credit is subject to the version of the Supplement of the ICC Uniform Customs and Practice for Documentary Credits for Electronic Presentations, International Chamber of Commerce, Paris, France, which is in effect on the date of issue.

or

2 The credit is subject to the version of the Supplement of the ICC Uniform Customs and Practice for Documentary Credits for Electronic Presentations, International Chamber of Commerce, Paris, France, which is in effect on the date of issue. The reimbursement is subject to the version of the Uniform Rules for Bank-to-Bank Reimbursements, International Chamber of Commerce, Paris, France, which is in effect on the date of issue.

Consideration should be given as to whether the eUCP can apply for all or part of the presentation of the documents. It must be noted that eUCP accommodates presentation of solely electronic records or in combination with paper documents. 

:31D: DATE AND PLACE OF EXPIRY    

YYMMDD [PLACE / COUNTRY]

Ensure that this field complements field 41A.

Recommended that expiry be in the country of the beneficiary.

:50: APPLICANT                    

[NAME AND ADDRESS OF APPLICANT]

It is recommended to avoid, when possible, inserting additional contact details such as telephone number and e-mail address - these will already be known between the applicant and the beneficiary.

:59: BENEFICIARY                  

[NAME AND ADDRESS OF BENEFICIARY]

It is recommended to avoid, when possible, inserting additional contact details such as telephone number and e-mail address - these will already be known between the applicant and the beneficiary.

:32B: CURRENCY CODE, AMOUNT                    

[CURRENCY AND AMOUNT]

The amount inserted in this field should represent that which is due to the beneficiary upon one or more complying presentations being made under the documentary credit. 

:39A: PERCENTAGE CREDIT AMOUNT TOLERANCE

Optional field - take note of UCP 600 article 30

:41A: AVAILABLE WITH                           

[NAME OF NOMINATED BANK]

BY PAYMENT

or

BY DEF (deferred) PAYMENT

or

BY NEGOTIATION

This field should correspond with data appearing in field 31D.

Consideration should be given as to how the credit will be made available.  Some banks may not accept eUCP transactions that are available with any bank, particularly if the method of presentation is via email.

It is recommended that banks issue usance documentary credits available by deferred payment as an alternative to availability by acceptance of a draft, unless there is a specific commercial, regulatory or legal reason to create a banker's acceptance. It is to be noted that eUCP allows for negotiating drafts and/or documents (electronic records). 

:42C: DRAFTS AT                          

TENOR OF DRAFT

Optional field - When used, fields 42C and 42a must both be present.

As stated in the ICC Guidance Paper on the use of drafts - https://iccwbo.org/publication/guidance-paper-use-drafts-bills-exchange-documentary-credits-executive-summary/ - it is recommended that the habit of requiring a draft for a documentary credit available at sight be curtailed, particularly sight drafts drawn on an issuing bank, confirming bank, or a bank nominated to pay, unless required for a specific commercial, regulatory or legal reason. 

:42A: DRAWEE                          

DRAWEE OF DRAFT

Optional field - The drawee must be a bank. If drafts on the applicant are required, they are to be listed as documents in field 46A.

:43P: PARTIAL SHIPMENTS

Optional field - UCP 600 sub-article 31 (a) highlights that partial shipments (or drawings) are permitted. Therefore, this field need not be completed if any number of partial shipments are allowed. There is now the option of a new code word ‘CONDITIONAL'.  In the event "CONDITIONAL" is used, specific details will need to be added in field 47A.

:43T: TRANSSHIPMENT

Optional field - when a multimodal transport document is to be presented, the credit must not prohibit transhipment. There is now the option of a new code word ‘CONDITIONAL'.  In the event "CONDITIONAL" is used, specific details will need to be added in field 47A.

:44C: LATEST DATE OF SHIPMENT

YYMMDD

Optional field but recommended - ensure that the latest date of shipment corresponds with the presentation period and date of expiry (field 31D): latest date of shipment + presentation period (21 days) = expiry date understanding that if this is not calculated properly, the presentation period may be curtailed as all presentations must be made on or before the expiry date.  

:45A: DESCRIPTION OF GOODS       

[BRIEF DESCRIPTION OF GOODS AND THE AGREED TRADE TERMS]

Optional field but recommended - keep the goods description as short and concise as possible.

Lengthy details actually provide little or no protection to an applicant in relation to the goods that will be received as banks do not verify the goods in any manner. 

:46A: DOCUMENTS REQUIRED                                       

(DESCRIPTION OF ANY DOCUMENTS REQUIRED)

Optional field but recommended

• Limit to only those documents that are absolutely essential. Remember that banks deal with documents and not with goods, services or performance to which the documents may relate. Any issues with goods, services or performance are outside the scope of UCP 600 and eUCP Version 2.1.
• Ensure the document/electronic records descriptions are as simple as possible whilst still meeting any necessary contractual requirements.
• For documents not specifically mentioned in UCP 600 and/or ISBP 821, provide the name of the issuing entity and describe, in clear and precise wording, the required content.
• If feasible, it is recommended that documentary requirements be limited to an invoice and transport document.Any additional documents should be sent directly by the seller to the buyer, outside of the credit unless necessary as per the local guidelines.
• For documents specifically mentioned in UCP 600 and/or ISBP 821, it is only necessary to state requirements that are not already mentioned in UCP 600/ISBP 821. For example, do not state "Full set clean on-board original multimodal bill of lading" - but simply "multimodal bill of lading".
• For documents specifically mentioned in UCP 600 and/or ISBP 821, avoid adding further requirements that modify or exclude articles or paragraphs. For example, do not require that the invoice must be "signed" unless that is absolutely necessary.

Ensure that electronic records of the following documents state the acceptable format:

1) Invoice (minimum data requirement governed by UCP article 18)

2) Transport document (minimum data requirement governed by UCP articles 19-25) 

3) Insurance certificate (only if required as per the sales contract, minimum data requirements governed by UCP article 28) 

4) Certificate of origin issued by a chamber of commerce or beneficiary showing origin of goods (only if required) 

In accordance with eUCP Version 2.1 article e9, any document being presented electronically should be stated as "one electronic record", and submission of multiple originals/copies should be avoided.  In situations where multiple originals/copies are requested, the presentation of one electronic record will still suffice.  

In accordance with eUCP Version 2.1 article e5, the credit must indicate the format of each required electronic record. If the format is not indicated, the electronic record may be presented in any format.  

In order to ensure compliance with eUCP Version 2.1 sub-article e6 (c) (i), it is strongly recommended that requirement be made for a notice of completeness to be submitted, indicating the name of the issuer.  In any case, in accordance with sub-article e6 (c) (i), a notice of completeness must be provided by the presenter.  

In conjunction with this, a clause would be required stating that any notice of refusal in relation to a presentation will be made solely to the issuer of the notice of completeness.  For clarity, issuing banks may wish to call for a notice of completeness in field 46A or field 47A explicitly.

The presentation of documents of title such as bills of lading needs to be carefully considered as, at the current time, electronic presentation of originals is not acceptable in a number of jurisdictions.  

Each presented electronic record should evidence its date of issuance in accordance with eUCP Version 2.1 article 10.

:47A: ADDITIONAL CONDITIONS                                     

(CONDITIONS THAT WILL APPLY TO THE CREDIT BUT DO NOT RELATE TO THE DESCRIPTION OF THE GOODS AND/OR SERVICES OR TO THE CONTENT OF A DOCUMENT)

THIS FIELD SHOULD VERY CLEARLY MENTION THE ELECTRONIC RECORDS SUBMISSION DETAILS. 

Optional field - all documentary requirements should be accommodated in field 46A.

Only add additional conditions when absolutely necessary and avoid including requirements that modify or exclude articles and paragraphs in UCP 600 or eUCP Version 2.1. 

Avoid adding generic requirements that are to apply to all presented documents. 

For example, "all documents to indicate credit number and date, and name of issuing bank".

Issuing banks should refrain from using redundant additional conditions that are frequently used in UCP 600 credits.

For example, "3^rd party documents not accepted", "the amount of each drawing must be endorsed on the reverse of this credit", "all documents must be manually signed", etc.  

If not already included in a field above, an issuing bank must include its physical address in accordance with eUCP Version 2.1 sub-article e1 (d).

Examples of clauses allowing electronic presentation of documents using SWIFT FileAct OR a third-party platform are as below:

DOCUMENTS ARE TO BE PRESENTED AS ELECTRONIC RECORDS TO THE FOLLOWING ADDRESS USING SWIFT FILEACT FUNCTIONALITY: SWIFT.GENERIC.FAST SERVICE: [DISTINGUISHED NAME OF ISSSUING BANK]DOCUMENTS TO BE PRESENTED AS A .ZIP FOLDER FILE CONTAINING INDIVIDUAL .PDF OR .TIF FILES. 

DOCUMENTS MUST BE ACCOMPANIED BY AN MT759 SWIFT MESSAGE SENT TO THE ISSUING BANK, QUOTING THIS LETTER OF CREDIT REFERENCE AND CROSS-REFERENCING THE DOCUMENTARY TRANSMISSION.

OR

DOCUMENTS ARE TO BE PRESENTED AS ELECTRONIC RECORDS AS PER THE REQUIREMENTS OF THE ABC PLATFORM OR AS DIGITAL IMAGE IN PDF/TIFF FORMAT VIA THE ABC PLATFORM TO XYZ BANK, HONG KONG BRANCH QUOTING THIS LETTER OF CREDIT REFERENCE. 

If the Advising and/or Confirming Banks are unable to exchange and present electronic records as per the Credit, then it is imperative they should respond immediately to the Issuing Bank. 

It is advisable that beneficiary review the presentation mode so that they can also present electronic records directly to the issuing bank in case of need [Ref UCP 600 sub-article 6 (d) (ii)]. 

:71D: CHARGES                                                 

[RESPONSIBILITY FOR CHARGES]

Optional field but recommended - in circumstances when issuing bank charges are for account of the beneficiary, there should also be an indication of the actual cost or formula to be used in order to calculate the charges that are to be collected.

:49: CONFIRMATION INSTRUCTIONS                                   

[ADD CONFIRMATION INSTRUCTIONS]

A requirement that confirmation is to be added will usually be made by the beneficiary in its sale contract, proforma invoice or other form of agreement.

:78: INSTRUCTIONS TO THE PAYING/ACCEPTING/NEGOTIATING BANK      

UPON RECEIPT OF A COMPLYING PRESENTATION PLEASE REMBURSE YOURSELF ON [REIMBURSING BANK]. THE REIMBURSEMENT IS SUBJECT TO URR 725

or

UPON RECEIPT OF A COMPLYING PRESENTATION PLEASE DEBIT OUR ACCOUNT WITH YOU.

Optional field indicating information that is specific to the bank that is being asked to honour or negotiate (if one is stated) e.g., reimbursement conditions (when there is no reimbursing bank mentioned in Field 53A), details for the forwarding of the documents to the issuing bank, etc.

It is advised that, whenever possible, funds be made directly available to the nominated bank (if one is stated). The two clauses mentioned on the left are examples that can be redrafted to fit the actual circumstances. 

Issuing banks should clearly mention the presentation requirements in field 47A, including the method of transfer (SWIFT FileAct, Multibank platform etc.), the format of the electronic records (if not already stated in field 46A), the electronic address for presentation and any other relevant details.