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.
How It Works
Contract Defines Quantity and Delivery Waves
MT700 Issued with Field 43P = ALLOWED
Seller Ships in Multiple Tranches (e.g., 3x $500K)
Each Document Set Reviewed per Shipment
Bank Pays Per Valid Presentation Until LC Is Fully Drawn
📂 Documents Required for Partial Shipment LC
To structure an LC with partial shipments, NNRV collects:
📌 Sales Agreement – With phased shipment clause
📌 Proforma Invoices – Per lot or aggregate
📌 LC Draft – With field 43P set to “ALLOWED”
📌 Transport Plan – Ports, timing, volumes per phase
📌 KYC & Compliance – Buyer and seller documentation
🏦 Trusted Banks Supporting Partial Shipment LCs
These banks regularly issue MT700 LCs with partial shipment clauses:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Fast MT700 drawdown validation | Higher fees per tranche | 1.1% – 8.3% | 2–5 days | $1M | Partial Shipment, Confirmed |
| BNP Paribas HK | BNPAHKHHXXX | Smooth handling for multi-port exports | Requires clear shipping logic | 1.2% – 7.9% | 2–6 days | $1M | Partial Shipment, Transferable |
| Credit Foncier GmbH | CFEGDE82 | Precise tolerance and shipment controls | Slower drawdown monitoring | 1.3% – 9% | 2–7 days | $500K | Partial Shipment, Irrevocable |
| Standard Commerce USA | STDMDMDMXXX | Flexible for project-based phased shipping | Documentation must be strict | 1.0% – 8.7% | 2–6 days | $500K | Partial Shipment, Confirmed |
| ABC Bank Mauritius | ABCKMUMU | Practical for agro and commodity shipping | Limitations on number of draws | 1.1% – 7.5% | 2–5 days | $250K | Partial Shipment, Usance |
🎯 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 |
| Supports Complex Supply Chains | Ideal for infrastructure or procurement waves |
🛠️ Our 5-Step Structuring Process
Analyze contract and port/date strategy
Draft MT700 LC with field 43P = ALLOWED
Coordinate with issuing and advising banks
Track drawdowns and ensure compliance per shipment
Close LC after final tranche is executed
🔍 Partial Shipment LC vs Other LC 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 | 🔒🔒🔒 |
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.
🧠 Real Testimonials
“Our port shipments are weekly—LCs structured for partial delivery made it smooth.”
– Claude T., Maritime Sourcing – Côte d’Ivoire
“We received 6 containers over 45 days. One LC, six payouts. That’s power.”
– Elena G., Industrial Supplies – Italy
📚 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
❓ Top 5 FAQ – Answered by Experts
Is partial shipment allowed by default under UCP 600? Yes, unless expressly prohibited in the LC.
Can I set limits per shipment? Yes. Value, date, or volume controls can be defined.
Do I need to amend LC if schedule changes? Not if partial shipment is allowed. Timing can shift without full LC change.
Can I use different ports? Yes, if structured clearly in the contract and MT700.
Is this structure safe for public procurement? Yes—especially for large-scale phased deliveries.
🔗 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 Compliant