Swift is a provider of secure message platform for financial
institutions mainly for banks. Swift messages send and received by
banks in encrypted forms. As a result swift messages are accepted as
a valid and reliable way of communication between banks. Swift
messages play a key role not only in letters of credit but also
other payment methods in international trade such as cash in
advance payment, documentary collections, open accounts and bank payment
obligations.
According to UCP 600, unless otherwise specified, a
documentary credit advised to the beneficiary or another advising bank based on
a SWIFT message constitutes an operative credit instrument which means that MT
700 swift message is an operative letter of credit.
MT 700 is a special swift message type that is sent by
the issuing bank to
the advising bank to indicate the terms and conditions of a documentary credit
which has been originated by the sender. On below table you can find detailed
explanations of fields used under MT 700 swift messages.
SWIFT
Field Definitions
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Code
|
SWIFT Field 700/701 Definitions
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SWIFT Field Explanation
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:700
|
Issue
Of Doc Credit
|
Type of
transmission
|
:20
|
Doc
Credit Number
|
Credit
number assigned by the issuing bank
|
:21
|
Receiver's
Reference
|
|
:23
|
Reference
Top Pre-Advise
|
|
:26E
|
Number
Of Amendments
|
Number
of Amendments
|
:27
|
Sequence
Of Total
|
Page
number of total pages
|
:30
|
Date
Contact Agreed / Amended
|
Date
Amended
|
:31C
|
Issue
Date
|
The date
the letter of credit is issued
|
:31D
|
Date
And Place Of Expiry
|
The
date the letter of credit expires
|
:31E
|
Maturity
Date
|
|
:32B
|
Currency
/ Amount
|
The
currency and value of the Credit
|
:39A
|
Percentage
Credit Amount Tolerance
|
|
:39B
|
Maximum
Credit Amount
|
|
:39C
|
Additional
Amounts Covered
|
Additional
amounts covered
|
:40A
|
Form Of
Doc Credit
|
Irrevocable
and/or transferable
|
:41A
|
Available
With ...By
|
|
:41D
|
Available
With / By
|
Bank
the Credit is available to be paid by
|
:42C
|
Drafts
At
|
Sight
or days after sight for payment
|
:42A
|
Drawee
|
Bank
the draft is drawn on
|
:42M
|
Mixed
Payment Details
|
|
:42P
|
Deferred
Payment Details
|
Deferred
payment details
|
:43P
|
Partial
Shipments
|
Partial
shipments allowed or not allowed
|
:43T
|
Transshipment
|
Transshipment allowed or not allowed
|
:44A
|
Loading
on Board / Dispatch / Taking in Charge at / From
|
Commercial
port loading from
|
:44B
|
For
Transport To
|
Destination
commercial port
|
:44C
|
Latest
Shipment Date
|
Last
date shipment letter of credit is valid for
|
:44D
|
Shipment
Period
|
|
:45
|
Goods
|
Goods
to be delivered
|
:45A
|
Description
Of Goods And/ Or Services
|
Goods
description
|
:46
|
Documents
Required
|
|
:46A
|
Documents
Required
|
Documents
required for payment
|
:47
|
Additional
Conditions
|
|
:47A
|
Additional
Conditions
|
Additional
requirements of the letter of credit
|
:47B
|
Additional
Conditions
|
Additional
conditions to be complied with
|
:48
|
Period
For Presentation Of Documents
|
Number
of days after shipment allowed for document presentation
|
:49
|
Confirmation
Instructions
|
Confirmation
by the paying bank is allowed or not allowed
|
:50
|
Applicant
|
The
Applicant (usually the buyer) of the Letter of Credit.
|
:50
|
Ordering
Customer
|
Ordering
customer
|
:51A
|
Applicant
Bank
|
|
:51D
|
Sending
Institution
|
Sending
Institution
|
:53A
|
Reimbursement
Bank
|
Paying bank
to negotiating bank
|
:53D
|
Reimbursement
|
Reimbursement
instructions between the paying and issuing bank
|
:57A
|
"Advise
Through" Bank
|
|
:57D
|
Account
With Bank
|
Issuing
banks account relationship bank
|
:59
|
Beneficiary
|
The
Beneficiary (usually the seller) of the Letter of Credit.
|
:71B
|
Charges
|
Applicant
and Beneficiary responsibility for bank charges
|
:72
|
Sender
To Receiver Information
|
Send
and Receive information
|
:78
|
Instructions
To Pay / Accept / Negotiating Bank
|
Instructions
to paying, accepting, or negotiating bank
|
:79
|
Narrative
|
|
I/O
|
Instead
Of
|
|