Non-Transferable Letter of Credit (MT700) – Secure LC Reserved for One
Beneficiary Only Exclusive Payment Right | No Risk of Third-Party Transfer | UCP 600 + SWIFT MT700 Format
⚠️ Want to Ensure That the LC Can’t Be Transferred to Another Party?
A European buyer issued a transferable LC unknowingly. The beneficiary reassigned it to a third party—complicating delivery. Now, with NNRV’s Non-Transferable LC structure, that buyer controls exactly who receives the funds. No surprises, no third-party risks.
🧠 “NNRV helped us lock our LCs so they can’t be reassigned. It protects us and simplifies trade.” – Sylvain R., Industrial Equipment Importer
What is a Non-Transferable Letter of Credit (LC)?
A Non-Transferable LC is a type of Letter of Credit that clearly specifies that the credit cannot be transferred to any party other than the original named beneficiary. This ensures exclusive control and eliminates the risk of involvement from unknown third parties.
At NNRV Trade Partners, we structure Non-Transferable LCs via SWIFT MT700 under full UCP 600 compliance. This LC is ideal for buyers who want certainty, and for sellers who wish to maintain exclusivity over payment rights.
🧠 “We’ve had deals jeopardized by transferred LCs in the past. Now we use Non-Transferable LCs only.” – Linda F., Telecom Equipment Exporter
Key Benefits of Non-Transferable LC
✅ Exclusivity – Only the named beneficiary can present documents and receive payment.
✅ Risk Elimination – Prevents unauthorized use or redirection.
✅ Simpler Compliance – Fewer intermediaries mean fewer errors.
✅ Full Legal Enforcement – Structured under UCP 600 and SWIFT MT700.
✅ Buyer-Seller Confidence – Builds trust by limiting external interference.
How Does a Non-Transferable Letter of Credit Work?
Buyer Applies for LC – Explicitly marked as « Non-Transferable. »
Bank Issues LC via SWIFT MT700 – Only payable to the named beneficiary.
Seller Ships Goods – Presents documents as usual.
Documents Verified – Only from original beneficiary.
Payment Released – Issuing bank pays the beneficiary directly.
📂 Documents Required for Non-Transferable LC Issuance
To issue a Non-Transferable LC, we ensure the exclusivity clause is clearly inserted. Required documents include:
📌 Signed Sales or Supply Contract – Naming exclusive beneficiary.
📌 Commercial Invoice – Matching buyer–seller details.
📌 Company Registration & Legal Docs – For beneficiary.
📌 Compliance Info – KYC, AML, SWIFT bank details.
📌 Delivery Terms – Shipment schedule and logistics.
🏦 Trusted Banks for Non-Transferable LC (MT700)
The following banks are commonly used in structuring Non-Transferable LCs with secure SWIFT communication:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Strong enforcement and clear documentation | Strict beneficiary validation | 0.6–1.5% | 2–5 days | $1M | Non-Transferable, Irrevocable |
| BNP Paribas HK | BNPAHKHHXXX | Ideal for EU–Africa trade control | Higher KYC for SMEs | 0.5–1.2% | 2–6 days | $1M | Non-Transferable, Confirmed |
| Credit Foncier GmbH | CFEGDE82 | Legal precision and strict adherence to terms | Longer amendment cycles | 0.7–1.3% | 2–7 days | $500K | Non-Transferable, Irrevocable |
| Standard Commerce USA | STDMDMDMXXX | Works well with direct payment clauses | Requires precise documentation | 0.8–1.5% | 2–6 days | $500K | Non-Transferable, Usance |
| ABC Bank Mauritius | ABCKMUMU | Ideal for regional SME contracts | Limited global recognition | 0.5–1% | 2–5 days | $250K | Non-Transferable, Usance |
(📩 Need help choosing the right bank? Ask our structuring team.)
🎯 Why Use a Non-Transferable LC?
| 🔒 Feature | ✅ Benefit |
| One Beneficiary Only | Payment can’t be redirected |
| No Transfer Clause | Reduces contractual disputes |
| Ideal for Sensitive Deals | Prevents risk of rerouting |
| Legal Enforcement | ICC UCP 600 protection |
| Simple Documentation Flow | Faster, cleaner transactions |
🛠️ Our 5-Step Process
You submit contract and beneficiary details
We draft the Non-Transferable LC under SWIFT MT700
Buyer validates & pays LC issuance fees
LC issued exclusively to named party
Seller ships & receives payment directly
🔍 Non-Transferable LC vs Other Instruments
| Instrument | Trigger | Best Use Case | Seller Protection |
| Non-Transferable LC | Single beneficiary | Controlled exclusive deals | 🔒🔒🔒🔒 |
| Transferable LC | Beneficiary request | Multi-tier export chains | 🔒🔒🔒 |
| Irrevocable LC | Document compliance | General high-value trade | 🔒🔒🔒🔒🔒 |
| Confirmed LC | Dual bank backing | Risky jurisdictions | 🔒🔒🔒🔒 |
Why Choose NNRV Trade Partners for Non-Transferable LC Structuring?
🔒 Drafting Precision for Exclusive Deals
✅ Legal Clause Enforcement Support
🌍 Trusted Bank Network to Avoid Transfer Loopholes
📄 Transparent Communication With All Parties
📁 Full SWIFT MT700 Compliance & Monitoring
💲 Important Notes on Fees
Fees vary depending on:
• Volume and frequency of LC issuance
• Type of goods and delivery location
• Issuing bank and country
🔹 Contact us for an exact structuring quote.
🧠 Real Testimonials
“We needed to secure a contract for medical devices—non-transferable was the safest.”
– Rania M., Healthcare Equipment Exporter – Egypt
“Now we know who gets paid and when. NNRV’s Non-Transferable LC eliminated uncertainty.”
– Paul T., Aviation Spare Parts – UAE
📚 What Makes Us Different?
✔️ SWIFT MT700 Structuring Accuracy
✔️ Anti-Fraud LC Advisory
✔️ Direct Payment Clauses Optimized
✔️ Exporter and Importer Onboarding
📌 From $250K to $100M+ in exclusive LC structures
❓ Top 5 FAQ – Answered by Experts
Can a non-transferable LC be modified later? Only through formal amendment and with consent from all parties.
Is this safer than transferable LC? Yes. It ensures payment only goes to the original seller.
Can I use confirmation too? Yes. The issuing bank can add a confirming bank for more protection.
What if someone tries to transfer it anyway? The issuing bank will reject any presentation not from the named party.
Can SMEs use this LC? Absolutely. It’s ideal for SMEs wanting to keep control over their payment flow.
🔗 Related Services
• Transferable LC
• Confirmed LC
• Irrevocable LC
• Payment Control Structuring
• SWIFT Draft Review
📖 Strategic Blog Posts
• Transferable vs Non-Transferable LC: Which Is Right for You?
• Protecting Payment Rights With Non-Transferable LCs
• How to Lock LCs for Maximum Control
🚀 Structure Your Non-Transferable LC Now!
Want total payment control? Let NNRV structure your Non-Transferable LC with full enforcement and clarity.
📩 Book Your LC Structuring Session
☎️ Talk to a Trade Specialist | 🌍 SWIFT-Connected | ✅ 100% UCP 600 Compliant