Partial Shipment Letter of Credit (MT700) — Field 43P=ALLOWED
Enable phased deliveries and pay-per-presentation under UCP 600/ISBP 745. NNRV structures LCs so logistics, cash flow, and banking controls stay perfectly synchronized over multiple tranches.
UCP 600 • ISBP 745
Field 43P = ALLOWED
Multi-port & Multi-date Options
Discrepancy Minimization
3–6 days
Typical LC Issuance Window
0–10%
Amount Tolerance (39A) Options
≤48h
Doc Check per Tranche
100+
Global Corridors Served
How It Works
- Contract defines quantity and delivery waves.
- MT700 is issued with Field 43P = ALLOWED.
- Seller ships in multiple tranches (e.g., 3× $500k).
- Each document set is reviewed per shipment.
- Bank pays per valid presentation until LC is fully drawn.
Tip: Use Field 39A for tolerances and Field 44C with realistic latest shipment dates.
Documents Required
- Sales Agreement — phased shipment clause
- Proforma Invoices — per lot or aggregate
- LC Draft — 43P set to “ALLOWED”
- Transport Plan — ports, timing, volumes per phase
- KYC & Compliance — buyer and seller documentation
Why Use a Partial Shipment LC?
| Feature | Benefit |
|---|---|
| Multi-Shipment Support | Ship in lots based on readiness |
| Phased Logistics Control | Each wave validated separately |
| Pay Per Delivery | Improves supplier cash flow |
| Avoid LC Revisions | No need to amend for every batch |
| Complex Supply Chains | Ideal for infrastructure/procurement waves |
Our 5-Step Structuring Process
- Analyze contract and port/date strategy.
- Draft MT700 LC with 43P = ALLOWED (and 43T as needed).
- Coordinate with issuing/advising/confirming banks.
- Track drawdowns and ensure compliance per shipment.
- Close LC after the final tranche is executed.
Best-Practice Controls
- 39A tolerances for quantity/amount (“±5%”).
- 44E/44F clear ports; 44C latest shipment per schedule.
- 47A “documents may be presented per shipment” clause.
- 48 presentation period aligned to transit times.
- 71B transparent charge sharing (OUR/SHA/BEN).
Partial Shipment LC vs Other Types
| LC Type | Shipment Flexibility | Best Use Case | Control Level |
|---|---|---|---|
| Partial Shipment LC | High | Phased projects/logistics | 🔒🔒🔒🔒🔒 |
| Indivisible LC | None | Full delivery before payment | 🔒🔒🔒🔒🔒 |
| Divisible LC | High | Drawdowns with multiple parties | 🔒🔒🔒🔒 |
| Evergreen LC | Medium | Recurring shipments, fixed terms | 🔒🔒🔒 |
Sample MT700 Draft Language (Excerpt)
40A: IRREVOCABLE
31D: 311224 LONDON
41A: ANY BANK BY NEGOTIATION
43P: ALLOWED
43T: ALLOWED
44E: HONG KONG, CN
44F: ROTTERDAM, NL
44C: 301124
32B: USD 1,500,000
39A: +/− 5 PCT
47A: DOCUMENTS MAY BE PRESENTED ON A PER-SHIPMENT BASIS.
EACH PARTIAL SHIPMENT SHALL BE SUBJECT TO THE SAME TERMS AND CONDITIONS.
48: DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS AFTER SHIPMENT DATE.
71B: CHARGES OUTSIDE ISSUING COUNTRY: BEN
49: CONFIRMATION INSTRUCTIONS: MAY ADD
Illustrative only. Final wording is tailored to corridor, goods, and bank template.
Trusted Banks Supporting Partial Shipment LCs (MT700)
Banks below regularly handle 43P=ALLOWED clauses. Terms are indicative and confirmed during onboarding.
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Fast MT700 validation | Higher per-tranche fees | 1.1%–8.3% | 2–5 days | $1M | Partial, Confirmed |
| BNP Paribas Hong Kong | BNPAHKHHXXX | Multi-port expertise | Requires tight shipping logic | 1.2%–7.9% | 2–6 days | $1M | Partial, Transferable |
| Credit Foncier GmbH (Germany) | CFEGDE82 | Precise controls | Slower drawdown monitoring | 1.3%–9% | 2–7 days | $500K | Partial, Irrevocable |
| Standard Commerce Bank (USA) | STDMDMDMXXX | Phased shipping friendly | Strict documentation | 1.0%–8.7% | 2–6 days | $500K | Partial, Confirmed |
| ABC Banking Corporation (Mauritius) | ABCKMUMU | Agro/commodity focus | Draw count limits | 1.1%–7.5% | 2–5 days | $250K | Partial, Usance |
| Bank of China | BKCHCNBJ | Strong China network | Less flexible crosses | 0.5%–7% | 2–6 days | $1M | Sight, Deferred, Partial |
| Standard Chartered (Dubai) | SCBLAEAD | GCC/APAC corridors | Moderate fees | 0.5%–7% | 2–6 days | $500K | Sight, Deferred, Partial |
| Exim Bank Tanzania | EXTNTZTZ | Africa trade partner | Slower processing | 0.5%–7% | 2–6 days | $250K | Sight, Deferred, Partial |
| MauBank Ltd (Mauritius) | MPCBMUMU | Offshore flexibility | Smaller brand footprint | 0.5%–6% | 2–5 days | $250K | Sight, Deferred, Partial |
| Access Bank Kenya | ABNGKENA | East Africa coverage | Limited global network | 0.5%–7% | 2–5 days | $250K | Sight, Deferred, Partial |
| Dashen Bank (Ethiopia) | DASHTEAA | Preferred for ET flows | Longer doc checks | 0.5%–7% | 3–6 days | $250K | Sight, Deferred, Partial |
| CTBC Bank (Hong Kong) | CTBKHKHHXXX | Sight & usance friendly | Mid-range fees | 4%–6% | 2–6 days | $500K | Sight, Usance, Partial |
| Dah Sing Bank (Hong Kong) | DSBAHKHHXXX | Strict but clear DLC | Verbiage rigidity | 5%–6% | 2–6 days | $500K | Deferred, Partial |
| UCO Bank (Hong Kong) | UCBKHKHHXXX | Competitive DLC | Higher for complex docs | 4%–8% | 2–6 days | $500K | Deferred, Partial |
| Dushanbe City Bank | LCMDTJ22 | All instruments | SWIFT-only comms | 3%–7% | 3–7 days | $250K | Sight, Deferred, Partial |
| PG Asia Investment Bank | AINEMY22 | Flexible corridors | Case-by-case appetite | 3%–7% | 2–6 days | $250K | All LC variants |
| Asia Pacific Investment Bank | ASPMMYKLXXX | Confirmation options | KYC intensive | 1%–4% | 3–6 days | $250K | Sight, Deferred, Partial |
| UBB Investment Bank | UBBIMY22XXX | Offshore structuring | SVG route typical | — | — | $250K | Partial (case-by-case) |
| ACE Investment Bank (MY) | AIBMMYKLXXX | Email & SWIFT delivery | Offshore model | 1%–4% | 3–6 days | $250K | Partial, Usance |
| Amanah Islamic Investment Bank (PH) | AIIPPHM1XXX | Islamic LC options | LC only | 1%–4% | 3–6 days | $250K | Deferred, Partial |
| Point Bank (UK) | POITGB21XXX | Flexible LC drafting | Ticket-size limits | 1%–4% | 2–5 days | $250K | Partial, Confirmed |
| Sapelle Intl Bank (Liberia) | GNERLRLMXXX | Swift-only ops | Selective corridors | 3%–7% | 3–7 days | $250K | Partial, Deferred |
| Oxford International Bank (USA) | — | PDF instrument flow | Non-standard ops | 1%–4% | 3–6 days | $250K | Partial (case-by-case) |
| Standard Chartered (Hong Kong) | SCBLHKHHXXX | Global network | Strict compliance | 1%–4% | 2–6 days | $250K | Partial, Sight |
| DBS Bank (Hong Kong) | DHBKHKHHXXX | Sight & usance | Verbiage constraints | 1%–4% | 2–6 days | $250K | Partial, Usance |
| Alior Bank SA (Poland) | ALBPPLPWXXX | A-rated discipline | LC strict | 1%–4% | 2–6 days | $500K | Partial, Deferred |
| Indian Bank | IDIBINBBXXX | A-rated | Template rigidity | 1%–4% | 2–6 days | $500K | Partial, Deferred |
| China Construction Bank (HK) | CCBQHKAX | Scale & reach | Slower changes | — | — | $1M | Partial, Sight |
| Mauritius Commercial Bank | MCBLMUMU | EEB/offshore | Case-driven | — | — | $250K | Partial, Deferred |
| Aktif Bank (Turkey) | CAYTTRIS | Custom conditions | On-request terms | — | — | $250K | Partial, Deferred |
| United Bank for Africa (Mozambique) | UNAFMZMA | Confirmed SVG routes | Selective risk | — | — | $250K | Partial, Deferred |
| Euro Exim Bank | EULULCL1XXX | No cash/deposit | Higher fees | 4%–9% | 3–6 days | $100K | Partial, Deferred |
Client Reviews (10)
Marcos G. — EPC, LatAm★★★★★
Three waves shipped, three clean presentations—cash matched milestones perfectly.
Layla S. — FMCG, GCC★★★★★
43P+39A setup avoided amendments as volumes fluctuated.
Thiago P. — Agri, Brazil★★★★☆
One doc query on tolerance, resolved in a day. Smooth overall.
Yuki N. — Components, JP★★★★★
ISBP alignment meant zero discrepancies across four tranches.
Hassan K. — Metals, MENA★★★★★
Advising bank praised the clarity of 47A conditions.
Emily C. — Pharma, EU★★★★★
Presentation window fit cold-chain transit perfectly.
Samuel O. — Logistics, NG★★★★★
Multi-port routing under 44E/44F handled without drama.
Omar A. — Infra, NA★★★★☆
Bank requested extra inspection wording—NNRV provided fast.
Ana R. — Retail, Iberia★★★★★
Pay-per-delivery improved supplier cash flow significantly.
David H. — Energy, UK★★★★★
Confirming bank lined up in 48h; tranche monitoring was simple.
Frequently Asked Questions (15)
1) What does Field 43P “ALLOWED” actually do?
It authorizes partial shipments so multiple presentations can be made and paid under the same LC up to the credit amount.
2) Do I need to set a tolerance when using partial shipments?
Often yes. Use 39A to set quantity/amount tolerance (e.g., ±5%) to avoid discrepancies for minor variances.
3) How are latest shipment dates handled across waves?
Use 44C for a global latest shipment date, and specify schedules in 47A; or issue amendments for timeline changes.
4) Can transshipment be allowed as well?
Yes, via Field 43T = ALLOWED. Include routing logic in 47A to reduce queries.
5) What if one tranche has a discrepancy?
Only that presentation is affected; other compliant tranches can still be honored if wording permits per-shipment checks.
6) Which Incoterms work best with partial shipments?
FOB/CFR/CIF for sea or FCA/CPT/CIP for multi-leg flows; align document requirements with chosen term.
7) How is payment timing handled?
Sight payment per compliant presentation, or usance/deferred terms per tranche if agreed.
8) Can an LC be transferable and allow partials?
Yes. Ensure transferability instructions and 43P settings are coherent; detail split logic in 47A.
9) How do we minimize bank queries?
Provide a shipment calendar, port codes, inspection/insurance clauses, and a clear document checklist up front.
10) Do insurers accept partial shipment LCs?
Yes. Align insurance certificates per tranche and ensure values match the shipment value.
11) What presentation period is typical?
14–21 days after each shipment is common; adjust based on transit time and corridor.
12) Can a confirming bank be added mid-way?
Potentially via amendment; check pricing and appetite before first shipment.
13) Are inspection certificates per tranche required?
If specified, yes. For phased QC, require one per shipment with batch/lot references.
14) What if volume increases mid-contract?
Use amount tolerance if minor; otherwise amend 32B (amount) and shipment schedule.
15) Do all corridors accept partial shipments?
Most do under UCP 600. Bank and country practices vary; we structure wording to corridor norms.
Contact NNRV — Partial Shipment LC Desk
Primary Office — Montréal, Canada
+1 (514) 581-2469 • info@nnrvtradepartners.com
Mon–Fri 9:00–18:00 (GMT-4)
Regional routing available: London, New York, Dubai, Singapore, Lagos, Nairobi, Johannesburg.