MT 700 Issue of a Documentary Credit – Explansation of important fields

Spread the love

MT 700: (6) Field 40E: Applicable Rules

Format

Option E30x[/35x](Applicable Rules)(Narrative)

Presence

Mandatory

Definition

This field specifies the rules the credit is subject to.

Codes

One of the following codes must be used in Applicable Rules (Error code(s): T59)

EUCP LATEST VERSIONThe 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.
EUCPURR LATEST VERSIONThe 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.
ISP LATEST VERSIONThe standby letter of credit is subject to the version of the ICC International Standby Practices, International Chamber of Commerce, Paris, France, which is in effect on the date of issue.
OTHRThe credit is subject to any other rules.
UCP LATEST VERSIONThe credit is subject to the version of the ICC Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce, Paris, France, which is in effect on the date of issue.
UCPURR LATEST VERSIONThe credit is subject to the version of the ICC Uniform Customs and Practice for Documentary Credits, 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 under documentary credits, International Chamber of Commerce, Paris, France, which is in effect on the date of issue.

Network Validated Rules

Subfield 2 of field 40E, that is, “/”35x, is only allowed when subfield 1 of this field consists of OTHR (Error code(s): D81).

MT 700: (9) Field 50: Applicant

Format

4*35x(Name and Address)

Presence

Mandatory

Definition

This field specifies the party on behalf of which the documentary credit is being issued.

MT 700: (11) Field 32B: Currency Code, Amount

Format

Option B3!a15d(Currency)(Amount)

Presence

Mandatory

Definition

This field contains the currency code and amount of the documentary credit.

Network Validated Rules

Currency must be a valid ISO 4217 currency code (Error code(s): T52).

The integer part of Amount must contain at least one digit. The decimal comma ‘,’ is mandatory and is included in the maximum length. The number of digits following the comma must not exceed the maximum number allowed for the specified currency (Error code(s): C03, T40, T43).

Usage Rules

Special information relative to the amount of the credit must be specified in field 39A Percentage Credit Amount Tolerance, field 39B Maximum Credit Amount or field 39C Additional Amounts Covered.

MT 700: (15) Field 41a: Available With … By …

Format

Option A4!a2!a2!c[3!c]
14x
(Identifier Code)
(Code)
Option D4*35x
14x
(Name and Address)
(Code)

Presence

Mandatory

Definition

This field identifies the bank with which the credit is available (the place for presentation) and an indication of how the credit is available.

Codes

In option A or D, Code must contain one of the following codes (Error code(s): T68)

BY ACCEPTANCE 
BY DEF PAYMENT 
BY MIXED PYMT 
BY NEGOTIATION 
BY PAYMENT 

Network Validated Rules

Identifier Code must be a registered financial institution BIC (Error code(s): T27, T28, T29, T45).

Identifier Code must be a financial institution BIC. This error code applies to all types of BICs referenced in a FIN message including connected BICs, non-connected BICs, Masters, Synonyms, Live destinations and Test & Training destinations (Error code(s): C05).

Usage Rules

For credits subject to eUCP:

  • If presentation of both electronic records and paper documents is allowed, the place for presentation of the electronic records (that is, the electronic address to which presentation must be made) as well as the place for presentation of the paper documents must be specified in field 47A and not in this field.
  • If presentation of only electronic records is allowed, the place for presentation of the electronic records (that is, the electronic address to which presentation must be made) must be specified in field 47A and not in this field.

If the credit is to be freely negotiable by any bank, option D must be used with the phrase Any bank in … (city or country). If the credit is to be freely negotiable by any bank anywhere in the world, an indication of country is not required.

When Code contains either BY DEF PAYMENT or BY MIXED PYMT, the specific details of the payment terms must be specified in field 42P and 42M respectively.

When Code contains BY PAYMENT, this should be understood to mean payment at sight.

MT 700: (33) Field 49: Confirmation Instructions

Format

7!x(Instruction)

Presence

Mandatory

Definition

This field contains confirmation instructions for the Receiver.

Codes

One of the following codes must be used (Error code(s): T67):

CONFIRMThe Receiver is requested to confirm the credit
MAY ADDThe Receiver may add its confirmation to the credit
WITHOUTThe Receiver is not requested to confirm the credit