Letter of Credit with Partial Shipments Allowed – Structured Flexibility for Multi-Lot Deliveries
Multiple Dispatches Under One LC | UCP 600 Article 31 | SWIFT MT700 Compliant
⚠️ Shipping in Batches? Need Flexibility Across Ports, Dates, or Quantities?
A logistics group based in West Africa sourced $6M of telecom equipment from 4 suppliers. NNRV structured a single LC with partial shipments allowed, letting them ship and pay per container—without changing the original LC.-
🧠 “Our project had 8 containers leaving from 3 ports. Without the partial shipment clause, we’d be lost. NNRV handled it all.” – Ibrahim F., Telecom Contractor
What Is a Letter of Credit with Partial Shipments Allowed?
It’s a Letter of Credit (MT700) that authorizes the seller to ship the goods in multiple lots instead of one single shipment. Defined under UCP 600 Article 31, it prevents rejection of the LC if goods are delivered in parts. At NNRV, we structure MT700s that clearly authorize partial shipment (field 43P = ALLOWED), minimizing amendment needs and reducing logistics pressure for phased deliveries.-
🧠 “We supply in 3 waves. Each shipment is released and paid under the same LC. It’s seamless with partial shipment enabled.” – Vania M., Equipment Supplier – Portugal
Key Benefits of LC with Partial Shipments Allowed
✅ Shipment Flexibility – Enables phased dispatch per production, port, or buyer needs. ✅ Cost Efficiency – Reduces warehouse congestion and shipping delays. ✅ Lower Risk – Each shipment is reviewed and paid upon document compliance. ✅ Ideal for Projects, Consortia, and Multi-Port Logistics. ✅ UCP 600 & MT700 Compliant – Field 43P governs all shipment permissions.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.
Why Choose NNRV?
🔒 MT700 & UCP 600 Shipment Structuring Experts ✅ Global Multi-Port LC Support 📄 Document Matching Per Delivery Set 🌍 Active in Agro, EPC, Equipment & Maritime 📁 Full-Scope Compliance + SWIFT Drafting💲 Fee Range
Fees range between 1% and 9%, based on: • Number of shipments • Bank partners involved • Sector and document complexity 🔹 Ask NNRV for a tailored partial-shipment LC quote.📚 What Makes Us Different?
✔️ Field 43P & Phased LC Structuring Expertise ✔️ Shipment-by-Shipment Payout Monitoring ✔️ Compliance with UCP 600 Article 31 ✔️ Active Support in Over 40 Countries 📌 From $250K to $100M+ in partial shipment LCs managed🔗 Related Services
• Divisible LC • Confirmed LC • Multi-Port Delivery Structuring • Red Clause LC📖 Strategic Blog Posts
• How to Structure LC for Partial Shipments • Partial Shipment vs Indivisible: What’s the Risk? • UCP 600 Article 31 Explained: Shipment Flexibility🚀 Structure Your Partial Shipment LC Now!
Flexible trade. Smart payouts. Phased delivery control. Let NNRV structure your MT700 LC with partial shipments allowed. 📩 Book Your LC Strategy Session ☎️ Work With Our Experts | 🌍 40+ Jurisdictions | ✅ SWIFT + UCP 600 CompliantLetter of Credit with Partial Shipments Allowed – Structured Flexibility for Multi-Lot Deliveries
Multiple Dispatches Under One LC | UCP 600 Article 31 | SWIFT MT700 Compliant
⚠️ Shipping in Batches? Need Flexibility Across Ports, Dates, or Quantities?
A logistics group based in West Africa sourced $6M of telecom equipment from 4 suppliers. NNRV structured a single LC with partial shipments allowed, letting them ship and pay per container—without changing the original LC.
🧠 “Our project had 8 containers leaving from 3 ports. Without the partial shipment clause, we’d be lost. NNRV handled it all.” – Ibrahim F., Telecom Contractor
What Is a Letter of Credit with Partial Shipments Allowed?
It’s a Letter of Credit (MT700) that authorizes the seller to ship goods in multiple lots instead of one single shipment. Defined under UCP 600 Article 31, it prevents rejection of the LC if goods are delivered in parts. At NNRV, we structure MT700s that clearly authorize partial shipment (field 43P = ALLOWED), minimizing amendment needs and reducing logistics pressure for phased deliveries.
Key Benefits of LC with Partial Shipments Allowed
- ✅ Shipment Flexibility – Enables phased dispatch per production, port, or buyer needs.
- ✅ Cost Efficiency – Reduces warehouse congestion and shipping delays.
- ✅ Lower Risk – Each shipment is reviewed and paid upon document compliance.
- ✅ Ideal for Projects, Consortia, and Multi-Port Logistics.
- ✅ UCP 600 & MT700 Compliant – Field 43P governs all shipment permissions.
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
Typical LC Metrics
- 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.
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 |
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
Trusted Banks Supporting Partial Shipment LCs
| Bank Name | SWIFT | 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 |
| Standard Commerce Bank (USA) | STDMDMDMXXX | Phased shipping friendly | Strict documentation | 1.0%–8.7% | 2–6 days | $500K | Partial, Confirmed |
Frequently Asked Questions (10)
- What does Field 43P “ALLOWED” do? It authorizes partial shipments under the same LC, avoiding amendments for multiple deliveries.
- Can I combine partial shipment with transferable LC? Yes, the LC can be both transferable and partial; each beneficiary draws per tranche.
- How are discrepancies handled per tranche? Each shipment is reviewed individually; discrepancies can delay payment for that tranche only.
- Which Incoterms work best? CIF, FOB, or DAP are common; choose terms that align with shipping control and risk allocation.
- Do insurers accept partial shipment LCs? Yes, insurance can be structured per tranche, matching the LC phasing and transport schedule.
- How is payment scheduled? Bank pays per compliant document set for each tranche until the LC is fully utilized.
- Are inspection certificates required per tranche? Typically yes, each shipment must comply with LC documentary requirements including inspection.
- Can transshipment be allowed? Yes, if Field 44E/44F ports are declared and agreed in the LC draft.
- How do we minimize bank queries? Clear LC wording, Field 43P, 47A clauses, and correct documents per tranche reduce queries.
- What is the typical presentation period? Usually aligned with transit times, e.g., 21 days after shipment date per tranche (Field 48).
Contact NNRV — Partial Shipment LC Desk
Montréal HQ | +1 (514) 581-2469 | info@nnrvtradepartners.com | Mon–Fri 9:00–18:00 GMT-4
Regional desks: London, New York, Dubai, Singapore, Lagos, Nairobi, Johannesburg.
Start a secure inquiry with LC amount, corridor, and notes; response within 24–48h.
Call to Action
🚀 Flexible trade. Smart payouts. Phased delivery control. Let NNRV structure your MT700 LC with partial shipments allowed. 📩 Book your LC Strategy Session | 40+ Jurisdictions | SWIFT + UCP 600 Compliant
Letter of Credit with Partial Shipments Allowed
Structured Flexibility for Multi-Lot Deliveries | UCP 600 Article 31 | SWIFT MT700 Compliant
Shipping in batches? An LC with Partial Shipments Allowed enables sellers to ship goods in multiple lots while ensuring payment per presentation under the same Letter of Credit.
🧠 “We shipped 8 containers from 3 ports. Partial shipment clause prevented amendments and ensured smooth cash flow.” – Example Supplier
Key Benefits
- ✅ Shipment Flexibility: Ship in phases based on production, port, or buyer needs.
- ✅ Cost Efficiency: Reduce warehouse congestion and delays.
- ✅ Lower Risk: Each shipment reviewed and paid upon document compliance.
- ✅ Ideal for Projects: Multi-port logistics, consortia, and phased deliveries.
- ✅ Fully UCP 600 & MT700 Compliant.
How It Works
- Contract defines quantity and delivery waves.
- MT700 LC issued with Field 43P = ALLOWED (and 43T as needed).
- Seller ships multiple tranches (e.g., 3× $500k).
- Bank reviews documents per shipment; payment released per tranche.
- LC closes after final tranche executed.
Documents Required
- Sales Agreement with phased shipment clause
- Proforma Invoices (per lot or aggregate)
- LC Draft (43P set to “ALLOWED”)
- Transport Plan — ports, timing, volumes
- KYC & Compliance documentation
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%
- 47A: DOCUMENTS MAY BE PRESENTED PER SHIPMENT
- 48: DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS AFTER SHIPMENT
- 71B: CHARGES OUTSIDE ISSUING COUNTRY: BEN
- 49: CONFIRMATION INSTRUCTIONS: MAY ADD
Trusted Banks Supporting Partial Shipment LCs
| Bank Name | SWIFT | Advantages | Disadvantages | 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 |
| 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 |
| UBS AG Switzerland | UBSWCHZH80A | Trusted EU bank | Longer for complex drafts | 1%–6% | 2–5 days | $500K | Partial, Confirmed, Usance |
Frequently Asked Questions (10)
- What does Field 43P “ALLOWED” mean? It permits multiple shipments under a single LC.
- Can partial shipments have different ports? Yes, align with Field 44E/44F instructions.
- Do I need to amend the LC for each tranche? No, ALLOWED clause avoids constant amendments.
- How is payment triggered? Each compliant document presentation per tranche triggers payment.
- What is Field 39A used for? To set tolerances for quantities/amounts.
- Can I combine partial shipment with deferred payment? Yes, Usance or Deferred LCs can include 43P=ALLOWED.
- Are multiple inspection certificates required? Yes, if stipulated per tranche.
- How do I monitor multi-tranche LC? Track drawdowns per tranche with issuing/advising bank.
- Can LC be transferable with partial shipments? Yes, draft LC accordingly.
- Which banks support partial shipment clauses? HSBC, BNP Paribas, Bank of China, Standard Chartered, UBS, and others listed above.
Contact NNRV — Partial Shipment LC Desk
Montréal HQ | +1 (514) 581-2469 | info@nnrvtradepartners.com | Mon–Fri 9:00–18:00 GMT-4
Regional desks: London, New York, Dubai, Singapore, Lagos, Nairobi, Johannesburg.
Call to Action
🚀 Structure your Partial Shipment MT700 LC with NNRV. Flexible trade, phased delivery control, and full UCP 600 compliance. 📩 Book Your LC Strategy Session Today.
Letter of Credit with Partial Shipments Allowed – Structured Flexibility for Multi-Lot Deliveries
Multiple Dispatches Under One LC | UCP 600 Article 31 | SWIFT MT700 Compliant
What Is a Letter of Credit with Partial Shipments Allowed?
This is an MT700 LC that authorizes the seller to ship goods in multiple lots instead of one single shipment. Defined under UCP 600 Article 31, it prevents rejection of the LC if goods are delivered in parts. At NNRV, we structure MT700s that clearly authorize partial shipments (Field 43P = ALLOWED), minimizing amendment needs and reducing logistics pressure for phased deliveries.
Key Benefits
- ✅ Shipment Flexibility – Enables phased dispatch per production, port, or buyer needs.
- ✅ Cost Efficiency – Reduces warehouse congestion and shipping delays.
- ✅ Lower Risk – Each shipment is reviewed and paid upon document compliance.
- ✅ Ideal for Projects, Consortia, and Multi-Port Logistics.
- ✅ UCP 600 & MT700 Compliant – Field 43P governs all shipment permissions.
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.
Documents Required
- Sales Agreement with 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
Compliance & Risk Management
- ✅ UCP 600 Article 31 adherence
- ✅ ISBP 745 verification
- ✅ FATF-aligned AML/KYC checks
- ✅ Sanctions & PEP screening
- ✅ Bank-to-bank SWIFT validation (MT700 / MT707 / MT760)
- ✅ Structured per multi-port, multi-date operations
Top Banks Supporting Partial Shipment LCs
| Bank Name | Country | LC Types | Min. Transaction | Typical Fees |
|---|---|---|---|---|
| HSBC | Hong Kong | Partial, Confirmed | $1M | 1.1–8.3% |
| BNP Paribas | Hong Kong | Partial, Transferable | $1M | 1.2–7.9% |
| Standard Chartered | Dubai | Sight, Deferred, Partial | $500K | 0.5–7% |
| Bank of China | China | Sight, Deferred, Partial | $1M | 0.5–7% |
| Exim Bank | Tanzania | Sight, Deferred, Partial | $250K | 0.5–7% |
| MauBank Ltd | Mauritius | Sight, Deferred, Partial | $250K | 0.5–6% |
| Access Bank | Kenya | Sight, Deferred, Partial | $250K | 0.5–7% |
| Dashen Bank | Ethiopia | Sight, Deferred, Partial | $250K | 0.5–7% |
| DBS Bank | Hong Kong | Partial, Usance | $250K | 1–4% |
| Alior Bank SA | Poland | Partial, Deferred | $500K | 1–4% |
Frequently Asked Questions
- What does Field 43P “ALLOWED” mean? It authorizes multiple shipments under a single LC without amendments.
- Can partial shipment LCs be transferable? Yes, subject to bank approval and UCP 600 compliance.
- How do I handle discrepancies per tranche? Each tranche is reviewed independently; discrepancies can be corrected without affecting other tranches.
- Is transshipment allowed? Yes, if clearly stated in 44E/44F and LC draft.
- What is the presentation period per shipment? Typically 21–28 days post-shipment; aligned with transit times.
- Are inspection certificates required per shipment? Yes, if agreed in the contract and LC draft.
- Can I use tolerances on quantities? Yes, use Field 39A to define acceptable +/- limits.
- Which Incoterms work best? FOB, CFR, CIF, or DDP depending on buyer/seller agreement.
- Is compliance verified per tranche? Yes, each shipment undergoes KYC/AML, SWIFT, and sanctions verification.
- How fast is funding per tranche? Typically 48–72h after document compliance confirmation by bank.
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Regional routing available: London, New York, Dubai, Singapore, Lagos, Nairobi, Johannesburg.
Multi-Bank LC Monetization – 40 Global Banking Partners
Unlock liquidity and structure partial shipment Letters of Credit across top-tier and reputable banks worldwide. NNRV ensures compliance, risk mitigation, and efficient fund release per tranche.
Supported Instruments
- SBLC (ISP98), Bank Guarantees (BG), DLC (UCP 600)
- Medium Term Notes (MTN), Sovereign Guarantees, Bills of Lading (BOL)
- Tier-1, Tier-2, and select private banks
- Min transaction: $250K | Max transaction: $100M+ (jurisdiction-dependent)
Compliance & Risk Management
- UCP 600 / ISP98 compliance
- SWIFT authentication: MT799 / MT760
- KYC/AML & FATF-aligned screening
- Sanctions & PEP checks
- Escrow or upfront fee handling with full audit trail
- LTV disclosed only post RWA/advising bank verification
Top 40 Banks for LC Monetization
| Bank Name | Country | Instruments | Min Ticket | Typical Fees |
|---|---|---|---|---|
| JPMorgan Chase | USA | SBLC/BG/DLC/MTN | $10M | 1–5% |
| HSBC | Hong Kong | SBLC/BG/DLC | $10M | 1.1–5% |
| Deutsche Bank AG | Germany | SBLC/BG/DLC | $10M | 1.2–5% |
| Barclays Bank PLC | UK | SBLC/BG/DLC | $10M | 1–5% |
| UBS AG | Switzerland | SBLC/BG | $10M | 1–4.5% |
| BNP Paribas | France | SBLC/BG/DLC | $10M | 1–5% |
| Citibank N.A. | USA | SBLC/BG/DLC/MTN | $10M | 1–5% |
| Standard Chartered | Hong Kong | SBLC/BG/DLC | $500K | 0.5–4% |
| Bank of China | China | SBLC/BG/DLC | $1M | 0.5–5% |
| Mizuho Bank | Japan | SBLC/BG/DLC | $1M | 1–4% |
| DBS Bank | Singapore | SBLC/BG/DLC | $500K | 1–4% |
| Emirates NBD | UAE | SBLC/BG | $500K | 1–4% |
| Mashreqbank PSC | UAE | SBLC/BG | $500K | 1–4% |
| Royal Bank of Canada | Canada | Receiving / Trade Platform | $500K | 1–4% |
| Bank of Communications | Hong Kong | SBLC/BG/DLC | $500K | 1–4% |
| CTBC Bank | Hong Kong | Sight & Usance | $500K | 4–6% |
| Dah Sing Bank | Hong Kong | Deferred / Partial | $500K | 5–6% |
| UCO Bank | Hong Kong | DLC / Deferred | $500K | 4–8% |
| Dushanbe City Bank | Tajikistan | All Instruments | $250K | 3–7% |
| PG Asia Investment Bank | Philippines | All LC Variants | $250K | 3–7% |
| Asia Pacific Investment Bank | Malaysia | Sight / Deferred | $250K | 1–4% |
| UBB Investment Bank | Bulgaria | Partial / Case-by-case | $250K | — |
| ACE Investment Bank | Malaysia | Partial / Usance | $250K | 1–4% |
| Amanah Islamic Investment Bank | Philippines | Deferred / Partial | $250K | 1–4% |
| Point Bank | UK | Partial / Confirmed | $250K | 1–4% |
| Sapelle Intl Bank | Liberia | Partial / Deferred | $250K | 3–7% |
| Oxford International Bank | USA | Partial / Case-by-case | $250K | 1–4% |
| Alior Bank SA | Poland | Partial / Deferred | $500K | 1–4% |
| Indian Bank | India | Partial / Deferred | $500K | 1–4% |
| China Construction Bank | Hong Kong | Partial / Sight | $1M | — |
| Mauritius Commercial Bank | Mauritius | Partial / Deferred | $250K | — |
| Aktif Bank | Turkey | Partial / Deferred | $250K | — |
| United Bank for Africa | Mozambique | Partial / Deferred | $250K | — |
| Euro Exim Bank | Luxembourg | Partial / Deferred | $100K | 4–9% |
| Standard Chartered (Hong Kong) | Hong Kong | Partial / Sight | $250K | 1–4% |
| DBS Bank (Hong Kong) | Hong Kong | Partial / Usance | $250K | 1–4% |
10 Key FAQs
- How does partial shipment affect LC payment timing? – Payment is per valid document set per tranche.
- Is 43P mandatory? – Yes, it must be set to ALLOWED for phased shipments.
- Can transshipment be accepted? – Yes, if specified in 44E/44F clauses.
- Are tolerances allowed? – Use 39A for quantity or amount flexibility.
- What if one tranche has discrepancies? – Only compliant sets are paid; remainder is addressed per UCP rules.
- Which Incoterms are best? – CIF, FOB, DAP, or as agreed per LC.
- Can LC be transferable and partial? – Yes, both features can coexist if structured correctly.
- Do confirming banks require additional checks? – Yes, they review documents per tranche.
- What documentation is needed? – Sales Agreement, Proforma, LC Draft, Transport Plan, KYC/Compliance.
- How is escrow or upfront fee managed? – Licensed law firm escrow or direct payment; fully auditable.
💬 Ready to structure your Partial Shipment LC with top banking partners?
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