MT700 SWIFT Message: The Complete Guide to Documentary Letter of Credit Issuance
The MT700 is the SWIFT message that makes a documentary letter of credit real. When the issuing bank transmits an MT700 to the advising bank, a legally binding, irrevocable payment undertaking is created. The seller can ship goods, present compliant documents, and receive payment from the issuing bank regardless of whether the buyer has the funds or the willingness to pay at that point.
This guide covers the MT700 in full: what it is, how it fits into the SWIFT Category 7 family, every field in the message structure, what legitimate sight and usance credit templates look like, how the issuance and document presentation process works, and the discrepancy patterns that most commonly delay or block payment.
Contents
- What Is the MT700
- MT700 in the SWIFT Category 7 Family
- Governing Rules: UCP 600 and ISBP 821
- MT700 Field Structure: Every Field Explained
- MT700 Templates
- The MT700 Issuance Process
- Document Presentation and Examination
- Common Discrepancies and How to Avoid Them
- MT700 vs MT760: Which Instrument for Which Purpose
- MT700 Fraud Patterns
1. What Is the MT700
The MT700 is a SWIFT Category 7 message used to issue a documentary letter of credit. It is transmitted from the issuing bank to the advising or confirming bank over the SWIFT FIN network and contains the full operative text of the credit: the parties, the amount, the currency, the expiry date and place, the shipment conditions, and the complete list of documents the seller must present to receive payment.
The legal significance of the MT700 is identical to that of a paper letter of credit issued under bank signature. The moment the advising bank receives and authenticates the MT700, the issuing bank is irrevocably committed to honour a compliant presentation of documents by the beneficiary, provided the presentation is made within the validity period and in accordance with the terms of the credit. That commitment is independent of the applicant. If the buyer instructs the bank to refuse payment or becomes insolvent, the issuing bank remains obligated to pay a compliant presentation.
This independence from the buyer's financial position is the defining commercial value of the documentary letter of credit. It converts the seller's credit risk from the buyer's creditworthiness to the issuing bank's creditworthiness, which in most international trade transactions is a substantially more bankable proposition for the seller.
MT710 and MT720: When the advising bank adds its own payment confirmation to the credit, it transmits an MT710 (advice of a third bank's documentary credit) or MT720 (transfer of a documentary credit) to the seller or to a second advising bank. The MT700 is always the originating instrument. MT710 and MT720 are derivative messages transmitted by banks downstream in the credit chain.
2. MT700 in the SWIFT Category 7 Family
The MT700 is one of several Category 7 messages that together support the full lifecycle of a documentary credit from issuance through to closure. Understanding which message type does what clarifies the MT700's specific role and where it sits in the transaction sequence.
| Message | Purpose | Binding? | Sent By |
|---|---|---|---|
| MT700 | Issue of a Documentary Credit. The operative issuance message containing all credit terms and document requirements. | Yes. Creates the issuing bank's irrevocable payment undertaking. | Issuing bank to advising or confirming bank. |
| MT705 | Pre-Advice of a Documentary Credit. Notifies the advising bank that a full MT700 is forthcoming. Allows early visibility before the operative instrument is transmitted. | No. Pre-advice only. The MT700 is the binding instrument. | Issuing bank to advising bank. |
| MT707 | Amendment to a Documentary Credit. Conveys changes to the terms of a previously issued MT700. | Yes, once accepted by all parties per UCP 600 Article 10. | Issuing bank to advising bank. |
| MT710 | Advice of a Third Bank's Documentary Credit. Used when a second advising bank re-advises the credit to the beneficiary. | No independent undertaking unless confirmation is added. | Advising bank to second advising bank. |
| MT720 | Transfer of a Documentary Credit. Used when a transferable credit is transferred in whole or in part to a second beneficiary. | Creates obligations on the transferring bank per UCP 600 Article 38. | Transferring bank to advising bank of second beneficiary. |
| MT730 | Acknowledgement. Sent by the advising bank to the issuing bank to confirm receipt of the MT700. | No. | Advising bank to issuing bank. |
| MT740 | Authorisation to Reimburse. Issued by the issuing bank to the reimbursing bank authorising it to pay the nominated bank's reimbursement claim. | Yes. The reimbursing bank is authorised to pay on a compliant claim. | Issuing bank to reimbursing bank. |
| MT750 | Advice of Discrepancy. Sent by the nominated or confirming bank to the issuing bank advising that a document presentation contains discrepancies. | No. Requests issuing bank's instructions on how to proceed. | Nominated bank to issuing bank. |
| MT799 | Free Format Message. Used for pre-advice, coordination, and bank-to-bank communication related to Category 7 instruments. | No. | Any SWIFT member bank to any SWIFT member bank. |
3. Governing Rules: UCP 600 and ISBP 821
Field 40E of every MT700 specifies the applicable rules governing the documentary credit. The overwhelming majority of international documentary credits are governed by UCP 600, the Uniform Customs and Practice for Documentary Credits, ICC Publication 600, which came into effect on 1 July 2007 and replaced the previous UCP 500.
UCP 600 establishes the rules for the interpretation of credit terms, the obligations of each bank in the credit chain, the timeframes for document examination and payment, the treatment of discrepancies, and the mechanics of honour and negotiation. It is not a statute and has no legal force of its own, but by incorporating UCP 600 into the credit terms, the parties contractually agree to its application, and courts in most jurisdictions will enforce it accordingly.
ISBP 821, the International Standard Banking Practice for the Examination of Documents under UCP 600, is a companion publication issued by the ICC Banking Commission. It provides detailed, practical guidance on how banks should apply UCP 600 when examining specific document types, including bills of lading, commercial invoices, certificates of origin, and insurance documents. ISBP 821 is not an independent set of rules. It is a practice guide for applying UCP 600 consistently across different banking jurisdictions.
UCP 600 Key Principles
Independence principle: The credit is independent of the underlying sale contract. The bank pays against compliant documents, not against the buyer's instructions or the actual performance of the goods.
Strict compliance: Documents must comply with the terms of the credit on their face. Banks examine documents as presented; they do not verify the underlying facts.
Five banking day examination: The issuing bank has a maximum of five banking days following the day of presentation to determine compliance and, if compliant, to honour.
UCP 600 Key Articles
Article 2: Definitions, including credit, honour, negotiation, and nominated bank.
Article 7: Issuing bank undertaking to honour compliant presentations.
Article 14: Standard for examination of documents.
Article 16: Discrepant documents and the bank's obligations.
Article 18: Commercial invoice requirements.
Articles 19 to 25: Transport document requirements for each document type.
4. MT700 Field Structure: Every Field Explained
The MT700 uses a defined field sequence. Fields are identified by their tag numbers and names. Mandatory fields must be present for the message to pass SWIFT validation. Optional fields are included when the credit terms require them. The fields are presented here in the order they appear in a transmitted MT700.
| Field Tag | Field Name | Status | Description |
|---|---|---|---|
| :27: | Sequence of Total | Mandatory | Indicates message sequence. Format n/n, e.g. 1/1 for a single message. If the credit is too long for one MT700, continuation messages carry subsequent sequence numbers. |
| :40A: | Form of Documentary Credit | Mandatory | Specifies whether the credit is irrevocable (IRREVOCABLE) or irrevocable and transferable (IRREVOCABLE TRANSFERABLE). Under UCP 600, all credits are irrevocable by default. Revocable credits no longer exist under UCP 600. |
| :20: | Documentary Credit Number | Mandatory | Unique reference assigned by the issuing bank. This number identifies the credit throughout its lifetime and must appear on all related messages, presentations, and correspondence. |
| :23: | Reference to Pre-Advice | Optional | Reference number of any MT705 pre-advice message sent before this MT700. Links the operative credit to the earlier pre-advice for record-keeping and processing continuity. |
| :31C: | Date of Issue | Mandatory | The date on which the credit is issued. Format YYMMDD. This is the reference date for the credit's validity period and for any shipment period expressed as a number of days from issue. |
| :40E: | Applicable Rules | Mandatory | The governing rules. Standard value: UCP LATEST VERSION. This incorporates UCP 600 by reference. Any deviation from the standard rules must be specified here. |
| :31D: | Date and Place of Expiry | Mandatory | The last date on which documents can be presented for payment and the place at which presentation must be made. Format YYMMDD followed by city and country. The place of expiry determines which banking day calendar applies to the expiry date. |
| :51A: / :51D: | Applicant Bank | Optional | The bank acting on behalf of the applicant where it differs from the issuing bank. Used where the applicant's relationship bank requests another bank to issue the credit. |
| :50: | Applicant | Mandatory | Full name and address of the buyer. Must be complete and accurate as it appears on the credit and on all subsequent documentation. |
| :59: | Beneficiary | Mandatory | Full name and address of the seller. The party who presents documents and receives payment under the credit. |
| :32B: | Currency Code, Amount | Mandatory | Three-letter ISO currency code and the face value of the credit. The issuing bank's maximum payment obligation. If the credit permits partial shipments, individual presentations may be for amounts less than the credit amount. |
| :39A: | Percentage Credit Amount Tolerance | Optional | Percentage tolerance above and below the credit amount within which the presentation amount may vary. Format: plus percentage / minus percentage, e.g. 10/10. Under UCP 600 Article 30, a five percent tolerance applies automatically to commodity credits where the quantity is not stated in units unless the credit specifies otherwise. |
| :41A: / :41D: | Available With / By | Mandatory | Specifies the bank at which the credit is available and the method of availability. Methods: BY SIGHT PAYMENT (pay immediately on compliant presentation), BY DEFERRED PAYMENT (pay on a future date), BY ACCEPTANCE (accept a draft for payment on the tenor date), BY NEGOTIATION (negotiate compliant documents). :41A: uses BIC code; :41D: uses name and address. |
| :42C: | Drafts At | Conditional | Required when the credit is available by acceptance or negotiation. Specifies the tenor of drafts to be drawn: AT SIGHT, or at a defined number of days after a specified event such as shipment date or bill of lading date. |
| :42A: / :42D: | Drawee | Conditional | Required when drafts are called for. Specifies the bank on which drafts are to be drawn. Typically the issuing bank or the confirming bank. |
| :43P: | Partial Shipments | Optional | Whether partial shipments are permitted or prohibited. Values: ALLOWED or NOT ALLOWED. If absent, UCP 600 Article 31 applies: partial shipments are permitted unless the credit prohibits them. |
| :43T: | Transhipment | Optional | Whether transhipment of goods is permitted or prohibited during transit. Values: ALLOWED or NOT ALLOWED. Relevant where the shipping route requires transfer between vessels or modes of transport. |
| :44A: | Place of Taking in Charge / Dispatch From / Place of Receipt | Optional | The place where the carrier takes charge of the goods for transport. Used when the credit requires a multimodal transport document or a specific named port or place of loading. |
| :44E: | Port of Loading / Airport of Departure | Optional | The port or airport from which the goods are to be shipped. If specified, the transport document must evidence loading at the named port. A bill of lading showing a different port of loading is discrepant. |
| :44F: | Port of Discharge / Airport of Destination | Optional | The port or airport at which the goods are to be discharged. Must match the transport document presented under the credit. |
| :44B: | Place of Final Destination / For Transportation To / Place of Delivery | Optional | The final destination of the goods when a multimodal transport document is required and the credit specifies a place beyond the port of discharge. |
| :44C: | Latest Date of Shipment | Optional | The last date on which the goods may be shipped. Format YYMMDD. A bill of lading showing an on-board date after this date is discrepant. If absent, the credit expiry date applies as the latest shipment date under UCP 600. |
| :44D: | Shipment Period | Optional | An alternative to a fixed latest shipment date. Expresses the shipment window as a period, e.g. DURING OCTOBER 2026 or WITHIN 30 DAYS OF CREDIT ISSUE. Cannot be used in combination with field 44C. |
| :45A: | Description of Goods and/or Services | Mandatory | The description of the goods being traded under the credit. The commercial invoice presented under the credit must include a description that corresponds to this field. Discrepancies between the invoice description and field 45A are one of the most common causes of document rejection. |
| :46A: | Documents Required | Mandatory | The full list of documents the beneficiary must present to receive payment. Each document type must be specified with sufficient detail to allow precise examination. Common documents include the commercial invoice, bill of lading, packing list, certificate of origin, insurance policy, and inspection certificate. |
| :47A: | Additional Conditions | Optional | Additional terms and conditions governing the credit that are not captured in the structured fields. Includes instructions on presentation, specific document wording requirements, marking requirements on bills of lading, and any deviations from standard UCP 600 provisions. |
| :71B: | Charges | Optional | Specifies which party bears banking charges. Common values: ALL BANKING CHARGES OUTSIDE [COUNTRY] ARE FOR ACCOUNT OF BENEFICIARY or ALL CHARGES FOR ACCOUNT OF APPLICANT. |
| :48: | Period for Presentation | Optional | The number of calendar days after the date of shipment within which documents must be presented for payment. UCP 600 Article 14(c) applies a default of 21 calendar days if this field is absent, subject to the credit not yet having expired. |
| :49: | Confirmation Instructions | Mandatory | Instructions to the advising bank on whether to add its confirmation to the credit. Values: CONFIRM (add confirmation and independent payment undertaking), MAY ADD (may add at beneficiary's request), WITHOUT (do not add confirmation). |
| :53A: / :53D: | Reimbursing Bank | Optional | The bank authorised by the issuing bank to reimburse the nominated bank after honouring a compliant presentation. When present, the issuing bank transmits a separate MT740 to the reimbursing bank authorising reimbursement. |
| :78: | Instructions to the Paying / Accepting / Negotiating Bank | Optional | Instructions from the issuing bank to the nominated bank on how to proceed after honouring a compliant presentation. Typically specifies where to send documents, how to claim reimbursement, and the format for reimbursement claims. |
| :57A: / :57D: | Advise Through Bank | Optional | A second advising bank through which the credit is to be re-advised to the beneficiary when the issuing bank does not have a direct relationship with the beneficiary's bank. |
| :72: | Sender to Receiver Information | Optional | Bank-to-bank instructions not forming part of the credit terms. Used for operational instructions to the advising bank that do not affect the credit text. |
5. MT700 Templates
The following templates illustrate the structure and content of legitimate MT700 messages for a sight payment credit and a usance credit available by acceptance. All variable fields are indicated in brackets. These templates are reference guides for understanding credit structure and are not drafts for use without review and issuance by a regulated banking institution.
Template 1: Irrevocable Sight Documentary Credit
The most common LC structure in commodity and goods trade. Payment is made immediately on presentation of compliant documents. No deferred payment period.
Template 2: Irrevocable Usance Credit Available by Acceptance
Used where the buyer requires a deferred payment period after shipment. The seller presents documents, the nominated bank accepts a draft, and payment is made on the maturity date. The accepted draft can be discounted to provide the seller with early payment.
6. The MT700 Issuance Process
The sequence from buyer instruction to transmitted MT700 follows defined steps at the issuing bank. Understanding this sequence is essential for managing the transaction timeline, particularly in commodity trades where shipment schedules and contract deadlines create hard financing windows.
- Step 1: Sale contract agreement. Buyer and seller agree on the payment terms, including that payment will be by documentary letter of credit. The sale contract specifies the credit amount, currency, latest shipment date, required documents, and any special conditions the LC must contain. The credit terms in the sale contract are the source document for the MT700 application.
- Step 2: LC application. The buyer submits an LC application to their bank. The application reproduces the credit terms agreed in the sale contract. The bank's trade finance team reviews the application against its internal credit limit for the buyer and the transaction.
- Step 3: KYC and compliance. The issuing bank screens the applicant, the beneficiary, and all parties and jurisdictions involved. Sanctions checks are completed. For a buyer with an existing relationship at their bank, this step is typically fast. For new clients, it adds time.
- Step 4: Credit approval and limit allocation. The issuing bank allocates credit capacity against the credit amount. For cash-backed credits, the buyer deposits the full credit amount. For credit-backed issuances, the bank allocates against the buyer's existing trade finance facility.
- Step 5: MT705 pre-advice, if required. If the seller or the advising bank has requested early notification, the issuing bank transmits an MT705 pre-advice before the operative MT700. This gives the advising bank and the seller advance visibility of the credit terms before the full instrument arrives.
- Step 6: MT700 transmission. The issuing bank transmits the MT700 to the advising or confirming bank. The SWIFT network authenticates and delivers it. The advising bank acknowledges receipt with an MT730.
- Step 7: Advising to beneficiary. The advising bank reviews the MT700, verifies the issuing bank's authenticity and RMA status, and advises the credit to the beneficiary in writing. If confirmation has been requested, the advising bank adds its own independent payment undertaking at this stage.
- Step 8: Seller ships and presents documents. The seller ships goods on or before the latest shipment date, prepares the required documents, and presents them at the nominated bank within the presentation period specified in field 48.
7. Document Presentation and Examination
The document presentation and examination process is where most LC transactions either succeed cleanly or encounter delays. UCP 600 Article 14 establishes the standard of examination: banks examine documents on their face to determine whether they appear to constitute a complying presentation. Banks do not verify the underlying facts, inspect the goods, or assess whether the documents accurately reflect what was actually shipped.
The nominated bank has a maximum of five banking days following the day of presentation to determine whether the documents comply with the credit terms. If the documents comply, the bank honours the presentation. If the documents are discrepant, the bank must notify the presenter of each discrepancy within the five-day period. A bank that fails to notify within five days cannot subsequently claim that the documents are discrepant.
When discrepancies are identified, the presenter has several options: correct and re-present the documents if time permits; request that the issuing bank waive the discrepancies with the applicant's consent; or request that the nominated bank forward the documents on a collection basis without the LC payment undertaking, relying instead on the buyer's willingness to pay.
8. Common Discrepancies and How to Avoid Them
Industry surveys consistently show that between sixty and eighty percent of first presentations under documentary credits contain at least one discrepancy. Most of these discrepancies are avoidable. The following are the patterns that appear most frequently.
Goods Description Mismatch
The description of goods in the commercial invoice does not correspond to the description in field 45A of the credit. Under UCP 600 Article 18(c), the description in the invoice must correspond to the credit. Other documents may use a general description consistent with the credit terms, but the invoice is held to strict correspondence. The fix is to copy the goods description from field 45A verbatim into the commercial invoice before shipment.
Late Shipment
The bill of lading shows an on-board date after the latest shipment date specified in field 44C. The on-board date on the bill of lading is determinative. If the goods were physically loaded before the latest shipment date but the shipping line issued the bill of lading with a later on-board notation, the presentation is discrepant. The fix is to obtain and verify the on-board date before presenting documents.
Late Presentation
Documents are presented after the period specified in field 48 or after the credit expiry date. The presentation period runs from the date of shipment, not from the date goods arrive at destination. In transit-heavy trades with long shipping routes, the 21-day default presentation period can be tight. Requesting a longer presentation period in the sale contract and the LC application is the preventive measure.
Inconsistency Between Documents
Under UCP 600 Article 14(d), data in documents need not be identical to data in the credit but must not conflict with it. Common inconsistencies include different cargo quantities on the invoice versus the packing list, different vessel names on the bill of lading versus the insurance certificate, and different marks and numbers across documents. All documents should be cross-checked against each other before presentation.
Bill of Lading Not Clean On Board
The credit requires a clean on-board bill of lading. The presented bill of lading carries a notation about the condition or packaging of goods, making it claused rather than clean, or does not carry an explicit on-board notation as required. The fix is to confirm clean on-board status with the shipping line before accepting the bill of lading and to verify that the on-board notation meets the credit requirements.
Credit Amount Exceeded
The invoice amount exceeds the credit amount, including any tolerance percentage specified in field 39A. Where partial shipments are permitted, the cumulative amount of all presentations must not exceed the credit amount. Where no tolerance is specified and no UCP 600 Article 30 tolerance applies, the invoice must be for exactly the credit amount or less. Tracking the remaining available amount under a credit being drawn in multiple presentations is the presenter's responsibility.
9. MT700 vs MT760: Which Instrument for Which Purpose
The MT700 and MT760 are both SWIFT Category 7 instruments issued by banks and governed by ICC rules. They serve fundamentally different commercial purposes and the choice between them is determined by the role the instrument plays in the transaction.
| Factor | MT700 Documentary Credit | MT760 SBLC or Bank Guarantee |
|---|---|---|
| Primary function | Primary payment instrument for the trade transaction. The seller is paid through the LC itself. | Contingent security instrument. Payment is triggered only if the applicant defaults on a primary obligation. |
| When drawn | On every compliant document presentation. Drawing is the expected outcome of the credit. | Only on default of the underlying obligation. Drawing is the exception, not the expected outcome. |
| Governing rules | UCP 600 (mandatory). ISBP 821 as supplementary guidance. | ISP98 (for SBLCs) or URDG 758 (for demand guarantees). UCP 600 occasionally for standbys in US practice. |
| Document examination | Detailed examination of a full set of commercial and transport documents against precise credit terms. | Simple demand statement, often with minimal documentary conditions. Under URDG 758, a written demand with a statement of default is typically sufficient. |
| Use case | Paying a seller for shipped goods. Financing an importer's purchase. Providing payment certainty to an exporter in a new trading relationship. | Securing a buyer's payment obligation. Guaranteeing a contractor's performance. Backing a borrower's loan repayment. Credit enhancement for a financing structure. |
| Cost to applicant | Issuance fee typically 0.5 to 1.5 percent of credit value plus advising and confirmation fees where applicable. | Issuance fee typically 1 to 2 percent per annum of face value. Higher than documentary credits because the contingent commitment is outstanding for longer. |
The practical rule: If the bank instrument is how the seller gets paid for the goods, the instrument is an MT700 documentary credit. If the bank instrument is what backs a separate payment arrangement or performance obligation and is only drawn on failure, it is an MT760 SBLC or bank guarantee. Many commodity transactions use both: an MT760 SBLC to secure the buyer's obligation and an MT700 LC as the primary payment mechanism.
10. MT700 Fraud Patterns
Documentary credit fraud is less prevalent than SBLC fraud in the fraudulent scheme landscape, but it does occur in specific patterns. The most common involve manipulation of the documents presented under a genuine credit, rather than fabrication of the credit itself.
Fraudulent Document Presentation
A seller presents forged or falsified documents under a genuine credit, most commonly a falsified bill of lading showing goods that were not shipped, shipped in smaller quantities than stated, or shipped in inferior condition to that described. The bank's obligation to pay against compliant documents on their face creates a window for document fraud. The mitigation is pre-shipment inspection by an independent, named inspection company whose certificate is required under field 46A.
Fake Credit Advices
A fraudulent party presents a forged or fabricated LC advice to a seller, claiming that a genuine MT700 has been received by the advising bank. The seller ships goods in reliance on the fake advice and presents documents to an advising bank that has no record of any MT700 from the claimed issuing bank. The fix is for the seller to contact the advising bank directly and independently to confirm receipt of the LC before shipping.
Diversion of Proceeds
In a back-to-back LC structure, an intermediary manipulates the document chain to divert LC proceeds from the master credit before paying the supplier under the secondary credit. The master LC is drawn and the intermediary receives payment, but the supplier is not paid and the goods are not delivered to the buyer. Independent verification of the document chain and separate legal advice on back-to-back structures are the primary mitigants.
Phantom LC Schemes
An advance fee scheme in which a fraudulent party offers to arrange a large documentary credit for a fee, typically described as a compliance charge or issuance cost. No LC is ever issued. The pattern is identical to phantom SBLC schemes: a request for an upfront payment before the instrument is transmitted, from a party who has no banking relationship capable of issuing the instrument described. No legitimate bank charges external advance fees to third parties before transmitting an MT700.
Verification before shipping: The most important rule for a seller receiving an LC advice is to verify the credit independently through the advising bank before shipping goods. Contact the advising bank's trade finance department directly using contact details sourced independently, not from the LC advice document itself. Confirm that the MT700 has been received from the claimed issuing bank and that the credit terms match those stated in the advice. Shipping goods in reliance on an unverified LC advice is the most common route to documentary credit loss for sellers.
Working on a Transaction That Requires a Documentary LC?
If you are structuring a commodity or goods trade that requires an MT700 documentary letter of credit, or if you need to access financing against an LC your buyer has already issued, submit your deal through our request for quote page. We work with regulated banks and specialist trade finance providers across sight and usance credits, LC discounting, and back-to-back structures.
Frequently Asked Questions
What is an MT700 SWIFT message?
The SWIFT message that issues a documentary letter of credit. Transmitted from the issuing bank to the advising bank. Creates an irrevocable payment obligation under UCP 600. The bank is committed to pay on compliant document presentation regardless of the buyer's financial position or instructions.
What is the difference between MT700 and MT760?
MT700 is a primary payment instrument under which the bank pays the seller on compliant document presentation. MT760 is a contingent security instrument drawn only on default. MT700 is how the seller gets paid. MT760 is what secures a separate obligation. Many transactions use both.
What rules govern an MT700?
UCP 600, ICC Publication 600, specified in field 40E. ISBP 821 provides supplementary guidance on document examination consistent with UCP 600. The parties cannot override UCP 600 in its entirety but can modify specific articles by explicit credit terms.
What documents are required under an MT700?
Specified in field 46A. Most commonly: signed commercial invoice, full set of clean on-board bills of lading, packing list, certificate of origin, marine insurance policy, and inspection certificate where required. The exact list depends on the commodity, the destination country, and the buyer's requirements.
What is the most common cause of discrepancies?
Goods description in the invoice not corresponding to field 45A, late shipment relative to field 44C, late document presentation relative to field 48, and inconsistencies between documents. Most discrepancies are avoidable by reading the credit terms carefully before shipment and cross-checking all documents against each other before presentation.
How do I verify an MT700 I have been advised of?
Contact the advising bank's trade finance department directly using independently sourced contact details and confirm receipt of the MT700 from the claimed issuing bank. Verify the LC reference number and terms. Do not rely on documents or contact details provided by the buyer or an intermediary. Never ship goods against an unverified LC advice.
Related reading: For how the MT799 pre-advice fits into the LC issuance sequence, see our MT799 SWIFT Message guide. For how the MT760 SBLC differs from the documentary credit and when each applies, see our MT760 SWIFT Message guide. For how to discount a usance LC after shipment, see our DLC discounting guide.
Disclaimer: This guide is informational and does not constitute legal, financial, or banking advice. MT700 field requirements, UCP 600 application, document examination standards, and LC issuance processes vary by jurisdiction, issuing bank, commodity type, and the specific terms of the underlying sale contract. Templates provided are illustrative reference examples only and must not be used without review and issuance by a qualified, regulated banking institution. Obtain independent legal and trade finance advice before relying on any documentary credit in a commercial transaction.