How to Read a SWIFT MT700: Field-by-Field Breakdown for Non-Bankers
| Main Heading | Subtopics |
|---|---|
| H1: How to Read a SWIFT MT700: Field-by-Field Breakdown for Non-Bankers | – |
| H2: What Is a SWIFT MT700? | – Definition of MT700 – Role in Letter of Credit Transactions – Why Understanding It Matters |
| H2: Who Uses MT700 and Why? | – Issuing Banks – Advising Banks – Exporters and Importers |
| H2: Format Overview of MT700 | – Structure of the Message – Standard Fields and Sequence – How It’s Sent and Read |
| H2: Field-by-Field Breakdown of SWIFT MT700 | – Field 27: Sequence of Total – Field 40A: Form of Documentary Credit – Field 20: Documentary Credit Number – Field 31C: Date of Issue – Field 50: Applicant – Field 59: Beneficiary – Field 32B: Currency Code and Amount – Field 41A/D: Available With… By… – Field 42C: Drafts at… – Field 44E/F: Shipment & Destination – Field 44C/D: Latest Shipment Date & Expiry – Field 45A: Description of Goods and Services – Field 46A: Required Documents – Field 47A: Additional Conditions – Field 71B: Charges – Field 48: Period for Presentation – Field 49: Confirmation Instructions |
| H2: How to Match MT700 Fields with Trade Documents | – Invoice vs Field 45A – Bill of Lading vs Field 46A – Avoiding Document Discrepancies |
| H2: Common Mistakes When Reading MT700 Messages | – Misreading Dates or Currency – Ignoring Additional Conditions – Overlooking Presentation Period |
| H2: Real-World Example of MT700 in Action | – Sample Message – What Exporters Should Double-Check – Lessons Learned |
| H2: Tools and Resources for Interpreting MT700 | – Bank Support – Trade Finance Advisors – Digital Decoders and Templates |
| H2: FAQs: How to Read a SWIFT MT700 | – What’s the difference between MT700 and MT710? – What happens if Field 46A is incomplete? – Can exporters edit the MT700? – Is it possible to dispute unclear terms? – How to decode abbreviations? – Is the MT700 legally binding? |
| H2: Conclusion | – Recap of Key MT700 Fields – Final Tips for Non-Bank Professionals |
Now, I’ll begin writing the long-form SEO article using this outline.
How to Read a SWIFT MT700: Field-by-Field Breakdown for Non-Bankers
What Is a SWIFT MT700?
A SWIFT MT700 is a standardized message format used by banks to issue documentary Letters of Credit (LCs). It provides all the terms, conditions, and instructions under which the LC operates. The MT700 is sent from the issuing bank to the advising bank and is considered a legally binding payment obligation—if all conditions are met.
Understanding this message is essential for exporters and trade professionals, even those without a banking background. Why? Because your payment depends on the accuracy of this message—especially how your documents match the MT700 fields.
Who Uses MT700 and Why?
- Issuing Banks use MT700 to outline the buyer’s LC instructions.
- Advising Banks forward the LC to the seller and verify its authenticity.
- Exporters must review it line by line to ensure the terms match the sales contract.
- Importers rely on it to define the conditions under which they are willing to pay.
Format Overview of MT700
The MT700 follows a consistent format and includes fields with numeric codes, each tied to a specific part of the LC. It’s transmitted through the SWIFT network, ensuring secure communication between banks.
The MT700 has two main parts:
- Header Fields: General information (LC number, issuing date, applicant)
- Operational Fields: Shipment terms, goods description, required documents, charges, etc.
Field-by-Field Breakdown of SWIFT MT700
Here’s what each critical field means in plain English:
- Field 27: Sequence of Total – Shows message number if the LC is split across messages.
- Field 40A: Form of Documentary Credit – Indicates if it’s transferable, irrevocable, etc.
- Field 20: Documentary Credit Number – Unique reference number of the LC.
- Field 31C: Date of Issue – The day the LC was officially issued.
- Field 50: Applicant – The buyer who is requesting the LC.
- Field 59: Beneficiary – The exporter who will be paid.
- Field 32B: Currency and Amount – Exact value and currency of the credit.
- Field 41A/D: Available With… By… – Where the LC is payable and by what means (e.g., at sight, by negotiation).
- Field 42C: Drafts at… – Terms of payment (e.g., at sight, 90 days after shipment).
- Field 44E/F: Port of Shipment and Port of Discharge – Where goods are shipped from and to.
- Field 44C: Latest Shipment Date – Final date to complete shipment.
- Field 44D: LC Expiry Date – Date by which all documents must be submitted.
- Field 45A: Description of Goods and Services – Description of what’s being sold.
- Field 46A: Documents Required – List of all the shipping and legal documents needed.
- Field 47A: Additional Conditions – Special clauses or requirements.
- Field 48: Period for Presentation – Number of days after shipment allowed to present documents.
- Field 49: Confirmation Instructions – States whether the LC should be confirmed by another bank.
- Field 71B: Charges – Who pays the banking fees (applicant, beneficiary, or shared).
