SWIFT is a secure message platform used by banks. There are various types of SWIFT messages used in different cases. Here we are discussing MT700 type SWIFT message.
Not only in Letter of credit, Open Account, Standby LC, Sending payments are also communicated through SWIFT messages by issuing banks and beneficiary banks.
MT700 SWIFT message is a type of message which is used by the LC issuing bank for issuing a Letter of Credit.
As per SWIFT:
This message is sent by the issuing bank to the advising bank.
It is used to indicate the terms and conditions of a documentary credit which has been originated
by the Sender (issuing bank).
There are other message types in Category 7 like MT701, MT705, MT760, etc. use for other purposes.
Here you can see above a Letter of credit issued by issuing bank and SWIFT type is mentioned.
In the MT 700 message, there are several fields where terms and conditions are mentioned in a letter of credit.
MT 700 Format Specifications
For standards MT November 2020
|M||27||Sequence of Total||1!n/1!n||1|
|M||40A||Form of Documentary Credit||24x||2|
|M||20||Documentary Credit Number||16x||3|
|O||23||Reference to Pre-Advice||16x||4|
|M||31C||Date of Issue||6!n||5|
|M||31D||Date and Place of Expiry||6!n29x||7|
|O||51a||Applicant Bank||A or D||8|
|M||32B||Currency Code, Amount||3!a15d||11|
|O||39A||Percentage Credit Amount Tolerance||2n/2n||12|
|O||39C||Additional Amounts Covered||4*35x||13|
|M||41a||Available With … By …||A or D||14|
|O||42C||Drafts at …||3*35x||15|
|O||42a||Drawee A or D||A or D||16|
|O||42M||Mixed Payment Details||4*35x||17|
|O||42P||Negotiation/Deferred Payment Details||4*35x||18|
|O||44A||Place of Taking in Charge/Dispatch from …/Place of Receipt||65x||21|
|O||44E||Port of Loading/Airport of Departure||65x||22|
|O||44F||Port of Discharge/Airport of Destination||65x||23|
|O||44B||Place of Final Destination/For Transportation to…/For place of delivery||65x||24|
|O||44C||Latest Date of Shipment||6!n||25|
|O||45A||Description of Goods and/or Services||100*65z||27|
|O||49G||Special Payment Conditions for Beneficiary||100*65z||30|
|O||49H||Special Payment Conditions for Bank Only||100*65z||
|O||48||Period for Presentation in Days||3n[/35x] 33||33|
|M||49||Confirmation Instructions||7!x 34||34|
|O||58a||Requested Confirmation Party||A or D 35||35|
|O||53a||Reimbursing Bank||A or D 36||36|
|O||78||Instructions to the Paying/Accepting/Negotiating bank||12*65x||37|
|O||57a||‘Advise Through’ Bank||A, B, or D||38|
|O||72Z||Sender to Receiver Information||6*35z||39|
M = Mandatory
O = Optional