F59: Beneficiary is a mandatory field in MT700 SWIFT message.
This field specifies the party on which favor the LC is issued.
Like the Applicant in the LC, the Beneficiary is a major part. Basically, they are the two parties who are making the business.
Usually, the seller/exporter becomes the beneficiary and their name and address are mentioned here.
If it’s a transferrable LC then the beneficiary mentioned in F59 is the First beneficiary. This LC can be transferred to more than one Second beneficiary. The second beneficiary cannot make transfer requests further.
The beneficiary make the presentation in the negotiating bank as per LC terms and conditions within the LC validity period.
Let’s see an example:
According to UCP600:
“Beneficiary means the party in whose favour a credit is issued.”
Negotiating bank check the documents if it is aligned with LC terms and conditions. They forward the documents on behalf of the Beneficiary.
According to SWIFT:
Definition:
“This field specifies the party in favour of which the documentary credit is being issued”
Let’s see another example. Here you will see the address and even phone number is mentioned:
If you have any thoughts you can share them with us.
