LC CLAUSES DETAILS meaning
http://www.creditguru.com/index.php/credit-management/international-trade-credit-management/articles-letter-of-credit/81-what-is-a-letter-of-credit
Status
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Tag
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Field
Name
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M
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27
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Sequence of Total
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M
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40A
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M
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20
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O
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23
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|
O
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31C
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M
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40E
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|
M
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31D
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O
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51a
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M
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50
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M
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59
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M
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32B
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O
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39A
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O
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39B
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O
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39C
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M
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41a
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O
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42C
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O
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42a
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O
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42M
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O
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42P
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O
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43P
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O
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43T
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O
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44A
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O
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44E
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O
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44F
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O
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44B
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O
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44C
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O
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44D
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Shipment Period
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O
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45A
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O
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46A
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O
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47A
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O
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71B
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O
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48
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M
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49
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O
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53a
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O
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78
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O
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57a
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O
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72
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O :
Optinal M :
Mandatory
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Field 72: Sender to Receiver
Information :
DEFINITION
This
field specifies additional information for the Receiver
CODES
One
or more of the following codes may be used:
- PHONBEN Please advise/contact beneficiary by phone.
- TELEBEN Please advise the beneficiary by the most efficient means of telecommunication.
USAGE RULES
- Any code must be between slashes and must appear at the beginning of a line.
- Narrative text must not begin with a slash and, if used, must begin on a new line and be the last information in the field.
M
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40A
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What is field 40A: Form of Documentary
Credit?
Field
40A: Form of Documentary Credit is a field in MT 700 swift message type that is
used to indicate the form of the letter of credit.
- Field 40A: Form of Documentary Credit
- This field specifies the type of credit.
- Codes : One of the following codes must be used :
IRREVOCABLE The documentary credit is
irrevocable.
REVOCABLE The documentary credit is
revocable.
IRREVOCABLE TRANSFERABLE The
documentary credit is irrevocable and transferable.
REVOCABLE TRANSFERABLE The documentary
credit is revocable and transferable.
IRREVOCABLE STANDBY The standby letter
of credit is irrevocable.
REVOCABLE STANDBY The standby letter of
credit is revocable.
IRREVOC TRANS STANDBY The standby
letter of credit is irrevocable and transferable.
M
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20
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What is field 20: Documentary Credit
Number?
Field
20: Documentary Credit Number is a field in MT 700 swift message type that is
used to indicate the letter of credit number.
·
Keywords : Letter of credit number assigned by the Issuing Bank.
(Field 20), 20. Doc Credit Number Credit number, Field 20. ISSUING BANK LC
Reference, specification of the Letter of Credit Number, mt 700 swift,
Standards MT Messages Implementation Guidelines – Swift, SWIFT MT700 codes,
SWIFTStandards – Category 7 – Documentary Credits, What is swift mt 700 in
banking, MT 700 sender definitely is a LC issuing bank, MT 700 Series, Complete
MT700, MT700 codes, Mt700 swift format in doc, MT700 or MT760 or ISO 20022
- Field 20: Documentary Credit Number
- This field specifies the documentary credit number which has been assigned by the Sender.
- Issuing banks and confirming banks must understand that bsence of letter of credit numbers on the documents is not a valid ground for a refusal.
- It should be pointed out that the request for insertion of letter of credit numbers is usually at the instigation of the issuing bank to facilitate the collation of documents when one or more go astray.
- The ICC has commented several times in the past that a refusal based on the absence of a L/C number on a document, where requested in the L/C, is not grounds for refusal.
O
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23
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- Field 23: Reference to Pre-Advice :
- This field specifies if the documentary credit has been pre-advised.
- A preliminary advice of the issuance of a credit or amendment (“pre-advice”) shall only be sent if the issuing bank is prepared to issue the operative credit or amendment. An issuing bank that sends a pre-advice is irrevocably committed to issue the operative credit or amendment, without delay, in terms not inconsistent with the pre-advice.
O
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31C
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- Field 31C: Date of Issue :
- This field specifies the date on which the issuing bank (Sender) considers the documentary credit as being issued.
- Date must contain a valid date expressed as YYMMDD.
- An issuing bank is irrevocably bound to honour as of the time it issues the credit. The commitment of the issuing bank the issue of the credit.
·
MT
700
·
Field
31C: Date of Issue
·
USAGE
RULES
·
The absence of this field implies that
the date of issue is the date this message is sent
M
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40E
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Applicable RulesL(UCP
LATEST….)
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M
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31D
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- Field 31D: Date and Place of Expiry :
- This field specifies the latest date for presentation under the documentary credit and the place where documents may be presented.
- A credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation.
- The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank. A place for presentation other than that of the issuing bank is in addition to the place of the issuing bank.
- Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date.
O
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51a
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- Field 51a: Applicant Bank :
- This field specifies the bank of the applicant customer, if different from the issuing bank.
- Identifier Code The BIC must be a SWIFT registered BIC address, either connected or non-connected.
- Identifier Code The BIC must not be a BEI. Please refer to the latest version of the BIC Dir
M
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50
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What
is Field 50: Applicant?
Field
50: Applicant is a field in MT 700 swift message type that is used to specify
the party on behalf of which the documentary credit is being issued. Applicant
is the importer of the underlying contract.
- Field 50: Applicant :
- This field specifies the party on behalf of which the documentary credit is being issued.
- Applicant means the party on whose request the credit is issued.
- A credit must not be issued available by a draft drawn on the applicant.
- A bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant.
- The applicant shall be bound by and liable to indemnify a bank against all obligations and responsibilities imposed by foreign laws and usages.
M
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59
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- What is Field 59: Beneficiary?
Field
59: Beneficiary is a field in MT 700 swift message type that is used to specify
the party in favour of which the documentary credit is being issued.
Beneficiary is the exporter of the underlying contract.
- Field 59: Beneficiary:
- This field specifies the party in favour of which the documentary credit is being issued.
- Beneficiary means the party in whose favour a credit is issued.
- Presenter means a beneficiary, bank or other party that makes a presentation.
- A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.
- Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must b
- e
M
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32B
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- oField 32B: Currency Code, Amount:
- This field contains the currency code and amount of the documentary credit.
- Currency must be a valid ISO 4217 currency code.
- The integer part of Amount must contain at least one digit. The decimal comma ',' is mandatory and is included in the maximum length. The number of digits following the comma must not exceed the maximum number allowed for the specified currency.
- A commercial invoice must be made out in the same currency as the credit.
- The insurance document must indicate the amount of insurance coverage and be in the same currency as the credit.
- The words "about" or "approximately" used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the q
O
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39A
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- Field 39A: Percentage Credit Amount Tolerance:
- This field specifies the tolerance relative to the documentary credit amount as a percentage plus and/or minus that amount.
- The words "about" or "approximately" used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to which they refer.
- A tolerance not to exceed 5% more or 5% less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit.
- Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed, provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not reduced or that sub-article 30 (b) is not applicable. This tolerance does not apply when the credit stipulates a specific tolerance or uses the expressions referred to in sub-article 30 (a).
O
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39B
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- Field 39B: Maximum Credit Amount:
- This field further qualifies the documentary credit amount.
- A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount in excess of that permitted by the credit.
- The amount in words must accurately reflect the amount in figures if both are shown, and indicate the currency, as stated in the credit.
Field
39B: Maximum Credit Amount :
CODES : The following code must be
used. NOT EXCEEDING Qualifies the documentary credit amount.
of
O
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39C
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- Field 39C: Additional Amounts Covered :
- This field specifies any additional amounts covered such as insurance, freight, interest, etc.
- This is an optional field. In most letters of credit we do not see this field.
- If used field 39c : Additional Amount Covered, must be added to the amount in field Field 32B: Currency Code, Amount to state the maximum amount covered by the letter of credit.
- This field can be used to reach a CIF amount from the FOB amount as well as of excha determination of the interest rate of the time draft or usance bill of exchange.
·
Field
39C: Additional Amounts Covered :
·
This
field specifies any additional amounts covered such as insurance, freight,
interest, etc.
M
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41a
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U
Field 41a: Available With
... By ... :
- This field identifies the bank with which the credit is available (the place for presentation) and an indication of how the credit is available.
- FORMAT
- Option A : (Identifier Code BIC )
BY ACCEPTANCE
BY DEF PAYMENT
BY MIXED PYMT
BY NEGOTIATION
BY PAYMENT
- Option D : (Name and Address)
BY ACCEPTANCE
BY DEF PAYMENT
BY MIXED PYMT
BY NEGOTIATION
BY PAYMENT
Field 41a: Available With ... By ... :
USAGE RULES
For
credits subject to eUCP:
•
If presentation of both electronic records and paper documents is allowed, the
place for presentation of the electronic records (ie, the electronic address to
which presentation must be made) as well as the place for presentation of the
paper documents must be specified in field 47A and not in this field.
•
If presentation of only electronic records is allowed, the place for
presentation of the electronic records (ie, the electronic address to which
presentation must be made) must be specified in field 47A and not in this
field. If the credit is to be freely negotiable by any bank, option D must be
used with the phrase Any bank in ... (city or country). If the credit is to be freely
negotiable by any bank anywhere in the world, an indication of country is not
required. When Code contains either BY DEF PAYMENT or BY MIXED PYMT, the
specific details of the payment terms must be specified in field 42P and 42M
respectively. When Code contains BY PAYMENT, this should be understood to mean
payment at sight.
O
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42C
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MT 700
Field Field 42C: Drafts at ... :
This field specifies the tenor of drafts
to be drawn under the documentary credit.
CONDITIONAL RULES
- C2 When used, fields 42C and 42a must both be present
- C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
- Field 42C: Drafts at ... :
- This field specifies the tenor of drafts to be drawn under the documentary credit.
- If a draft is drawn at a tenor other than sight, or other than a certain period after sight, it must be possible to establish the maturity date from the data in the draft itself.
- If the tenor refers to xxx days after the bill of lading date, the on board date is deemed to be the bill of lading date even if the on board date is prior to or later than the date of issuance of the bill of lading.
- In all cases the drawee bank must advise the maturity date to the presenter. The calculation of tenor and maturity dates, as shown above, would also apply to credits designated as being available by deferred payment, i.e., where there is no requirement for a draft to be presented by the beneficiary.
00 su
O
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42a
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- 1 Field 42a: Drawee :
- This field identifies the drawee of the drafts to be drawn under the documentary credit.
- A credit must not be issued available by a draft drawn on the applicant.
- A credit may be issued requiring a draft drawn on the applicant as one of the required documents, but must not be issued available by drafts drawn on the applicant.
- The draft must be drawn on the party stated in the credit.
- The draft must be drawn by the beneficiary.
O
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42M
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- Field 42M: Mixed Payment Details :
- This field specifies the payment dates, amounts and/or method for their determination in a documentary credit which is available by mixed payment.
- Mixed payment is not covered under UCP 600 with a direct referance but parties can use mixed payments under letters of credit.
- Mixed payment example is as follows:
*
%25 proforma invoice will be paid via advance payment outside l/c, %75 proforma
invoice amount will be paid by at sight letter of credit.e
at
O
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42P
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- . Field 42P: Deferred Payment Details :
- This field specifies the payment date or method for its determination in a documentary credit which is available by deferred payment only.
- A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation.
- By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank.
O
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43P
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- Field 43P: Partial Shipments :
- This field specifies whether or not partial shipments are allowed under the documentary credit.
- According to letter of credit rules partial drawings or shipments are allowed unless otherwise stated on the credit.
- A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
- A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.
Field
43P: Partial Shipments :
DEFINITION
This field specifies whether or not
partial shipments are allowed under the documentary credit.
O
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43T
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- Field 43T: Transshipment :
- This field specifies whether or not transshipment is allowed under the documentary credit.
- According to letter of credit rules, transhipment means unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes of transport) during the carriage from the place of dispatch, taking in charge or shipment to the place of final destination stated in the credit.
- A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading.
- A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading.
·
Field
43T: Transshipment :
·
DEFINITION
·
This
field specifies whether or not transshipment is allowed under the documentary
credit.
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44A
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- Field 44A: Place of Taking in Charge/Dispatch from .../Place of Receipt :
- This field specifies the place of taking in charge (in case of a multimodal transport document), the place of receipt (in case of a road, rail or inland waterway transport document or a courier or expedited delivery service document), the place of dispatch or the place of shipment to be indicated on the transport document.
Place of taking in charge =>
multimodal transport document, combined bill of lading
Place of receipt =>
road transport document, rail transport document, inland waterway transport
document, courier receipt or expedited delivery service document
- Note : Remember these are examples from swift standards. First leg of the multimodal transport document could start from a port or an airport. Do not constrain yourselves with these li
mit Field
44A: Place of Taking in Charge/Dispatch from .../Place of Receipt :
DEFINITION
This field specifies the place of
taking in charge (in case of a multimodal transport document), the place of
receipt (in case of a road, rail or inland waterway transport document or a
courier or expedited delivery service document), the place of dispatch or the
place of shipment to be indicated on the transport document.
O
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44E
|
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- Field 44E: Port of Loading/Airport of Departure :
- This field specifies the port of loading or airport of departure to be indicated on the transport document.
- A bill of lading, however named, must appear to indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit.
- An air transport document, however named, must appear to indicate the airport of departure and the airport of destination stated in the credit.
·
Field
44E: Port of Loading/Airport of Departure :
·
DEFINITION
·
This
field specifies the port of loading or airport of departure to be indicated on
the transport document.
O
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44F
|
- Field 44F: Port of Discharge/Airport of Destination :
- This field specifies the port of discharge or airport of destination to be indicated on the transport document.
- A bill of lading, however named, must appear to indicate shipment from the port of loading to the port of discharge stated in the credit.
- An air transport document, however named, must appear to indicate the airport of departure and the airport of destination stated in the credit.
·
Field
44F: Port of Discharge/Airport of Destination :
·
DEFINITION
·
This
field specifies the port of discharge or airport of destination to be indicated
on the transport document.
O
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44B
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- Field 44B: Place of Final Destination/For Transportation to .../Place of Delivery :
- This field specifies the final destination or place of delivery to be indicated on the transport document.
- A transport document covering at least two different modes of transport (multimodal or combined transport document), however named, must appear to indicate the place of dispatch, taking in charge or shipment and the place of final destination stated in the credit.
A road,
rail or inland waterway transport document, however named, must appear to ind Field
44B: Place of Final Destination/For Transportation to .../Place of Delivery :
DEFINITION
This field specifies the final
destination or place of delivery to be indicated on the transport document.
pl
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44C
|
- ace o Field 44C: Latest Date of Shipment :
- This field specifies the latest date for loading on board/dispatch/taking in charge.
- Date must be a valid date expressed as YYMMDD.
- Latest date of shipment will apply only to the transport documents stated in the latest version of the UCP. Please be careful that below documents are not transport documents as per UCP 600.
Delivery
Order,
Forwarder’s
Certificate of Receipt,
Forwarder’s
Certificate of Shipment,
Forwarder’s
Certificate of Transport,
Forwarder’s
Cargo Receipt
Mate’s
Receipt
- Therefore, these documents will be examined in the same manner as other documents for which there are no specific provisions in UCP 600, i.e., under sub-article 14(f). In any event, documents must be presented not later than the expiry date for presentation as stated in the credit.
f sh Field
44C: Latest Date of Shipment:
DEFINITION
This field specifies the latest date
for loading on board/dispatch/taking in charge.
ipment and the place of destination stated
in the credit.
O
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44D
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Shipment Period
|
O
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45A
|
- Field 45A: Description of Goods and/or Services :
- This field contains a description of the goods and/or services.
- According to current letter of credit rules the description of the goods, services or performance in a commercial invoice must correspond with that appearing in the credit.
- According to current letter of credit rules, in documents other than the commercial invoice, the description of the goods, services or performance, if stated, may be in general terms not conflicting with their description in the credit.
- As per ISBP 2007, if a trade term is part of the goods description in the credit, or stated in connection with the amount, the invoice must state the trade term specified, and if the description provides the source of the trade term, the same source must be identified (e.g., a credit term “CIF Singapore Incoterms 2000” would not be satisfied by “CIF Singapore Incoterms”).
·
Field
45A: Description of Goods and/or Services:
·
DEFINITION
·
This
field contains a description of the goods and/or services.
·
USAGE
RULES
·
Terms
such as FOB, CIF, etc. should be specified in this field.
O
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46A
|
|
- Field 46A: Documents Required :
- This field contains a description of any documents required.
- According to current letter of credit rules banks deal with documents and not with goods, services or performance to which the documents may relate.
- Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered.
According
to current letter of credit rules a nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine
a presentation to determine, on the basis of the documents alone, whether or
not the documents appear on their Field
46A: Documents Required:
DEFINITION
This field contains a description of
any documents required.
USAGE RULES
- When the ultimate date of issue of a transport document is specified, it is to be specified with the relative document in this field.
- For credits subject to eUCP, the format in which electronic records are to be presented must be specified in this field.
- To cater for lengthy documentary credits, up to three MT 701s may be sent in addition to an MT 700.
- However, field 46a may appear in only one message, ie, either in the MT 700 or in one MT 701.
- This means that in any documentary credit, there is a limit of 100 lines of 65 characters to specify the documents required.
- The specification of each new item should begin on a new line, preceded by the sign '+'.
- fa
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47A
|
- c Field 47A: Additional Conditions :
- This field contains a description of further conditions of the documentary credit.
- According to current letter of credit rules complying presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice.
- Beneficiaries should study additional conditions very well. Banks write down special requirements under this field such as signature requirements, approval requirements, date requirements etc...
- If there is any unclear article exist under additional conditions field please do not hesitate to contact issuing bank for further clarification.
compl Field
47A: Additional Conditions :
DEFINITION
This field contains a description of
further conditions of the documentary credit.
USAGE RULES
- In case the documentary credit is subject to any rules for which no code words are provided in field 40E, further details should be specified in this field.
- To cater for lengthy documentary credits, up to three MT 701s may be sent in addition to an MT 700. However, field 47a may appear in only one message, ie, either in the MT 700 or in one MT 701. This means that in any documentary credit, there is a limit of 100 lines of 65 characters to specify the additional conditions.
- Where applicable, for credits subject to eUCP:
If presentation of
both electronic records and paper documents is allowed, the place for
presentation of the electronic records (ie, the electronic address to which
presentation must be made) as well as the place for presentation of the paper
documents must be specified in this field.
If presentation of
only electronic records is allowed, the place for presentation of the
electronic records (ie, the electronic address to which presentation must be
made) must be specified in this field.
If not already part of the original
documentary credit, the advising bank, ie, the receiver
of the message, must provide the beneficiary or another advising bank with the
electronic address of the issuing bank. Furthermore, the advising bank must
provide the beneficiary or another advising bank with the electronic address
where they wish the electronic records to be presented.
In case the electronic address contains the
"@" sign, the latter should be replaced by "(AT)". In case
the electronic address contains the "_", the latter should be
replaced by "(UNDERSCORE)".
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71B
|
- Field 71B: Charges :
- This field may be used only to specify charges to be borne by the beneficiary.
- FORMAT
Option
B (Narrative)
In
addition to narrative text, the following line formats may be used:
(Code)(Currency)(Amount)(Narrative)
- CODES One or more of the following codes may be used, followed by the currency code and amount:
AGENT Agent's
commission
COMM Our
commission
CORCOM Our
correspondent's commission
DISC Commercial
discount
INSUR Insurance
premium
POST Our
postage
STAMP Stamp
duty
TELECHAR Teletransmission
charges
WAREHOUS Wharfing
and warehouse
.
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48
|
- Field 48: Period for Presentation :
- This field specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation.
- According to current letter of credit rules except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date.
- According to current letter of credit rules a presentation including one or more original transport documents subject to articles 19, 20, 21, 22, 23, 24 or 25 must be made by or on behalf of the beneficiary not later than 21 calendar days after the date of shipment as described in these rules, but in any event not later than the expiry date of the credit.
DEFINITION
This field specifies the period of time
after the date of shipment within which the documents must be presented for
payment, acceptance or negotiation.
USAGE RULES
- The period of time is expressed in number of days.
- The absence of this field means that the presentation period is 21 days, where applicable.
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49
|
- Field 49: Confirmation Instructions :
- This field contains confirmation instructions for the Receiver.
- According to current letter of credit rules confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation.
- According to current letter of credit rules confirming bank means the bank that adds its confirmation to a credit upon the issuing bank's authorization or request. As a result banks can not add their confirmations to the letter of credit without having a confirmation request by the issuing banks.
According
to current letter of credit rules a confirming bank is irrevocably bound to honour or negotiate as of the time it adds its
confirmation to the credit. negotiate as of the time Field 49:
Confirmation Instructions :
DEFINITION
This field contains confirmation
instructions for the Receiver.
CODES
One of the following codes must be
used.
- CONFIRM The Receiver is requested to confirm the credit.
- MAY ADD The Receiver may add its confirmation to the credit.
- WITHOUT The Receiver is not requested to confirm the credit.it
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53a
|
- to Field 53a: Reimbursing Bank :
- This field specifies the name of the bank which has been authorised by the Sender to reimburse drawings under the documentary credit. This may be a branch of the Sender or the Receiver, or an entirely different bank.
- According to current letter of credit rules if a credit states that reimbursement is to be obtained by a nominated bank ("claiming bank") claiming on another party ("reimbursing bank"), the credit must state whether the reimbursement is subject to the ICC rules for bank-to- bank reimbursements in effect on the date of issuance of the credit or not.
- According to current letter of credit rules a reimbursing bank's charges are for the account of the issuing bank. However, if the charges are for the account of the beneficiary, it is the responsibility of an issuing bank to so indicate in the credit and in the reimbursement authorization. If a reimbursing bank's charges are for the account of the beneficiary, they shall be deducted from the amount due to a claiming bank when reimbursement is made. If no reimbursement is made, the reimbursing bank's charges remain the obligation of the issuing bank.
·
Field
53a: Reimbursing Bank :
·
DEFINITION
·
This
field specifies the name of the bank which has been authorised by the Sender to
reimburse drawings under the documentary credit. This may be a branch of the
Sender or the Receiver, or an entirely different bank.
·
USAGE
RULES
·
With the
exception of a credit valid for negotiation, if there is a single direct
account relationship, in the currency of the credit, between the Sender and the
Receiver, the absence of field 53a means that this account relationship will be
used for reimbursement.
O
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78
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- Field 78: Instructions to the Paying/Accepting/Negotiating Bank :
- This field specifies instructions to the paying, accepting or negotiating bank. It may also indicate if pre-notification of a reimbursement claim or pre-debit notification to the issuing bank is required.
- According to current letter of credit rules a bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant.
- According to current letter of credit rules an issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out, even if it has taken the initiative in the choice of that other bank.
- According to current letter of credit rules a bank instructing another bank to perform services is liable for any commissions, fees, costs or expenses ("charges") incurred by that bank in connection with its instructions. If a credit states that charges are for the account of the beneficiary and charges cannot be collected or deducted from proceeds, the issuing bank remains liable for payment of charges.
·
Field 78:
Instructions to the Paying/Accepting/Negotiating Bank :
·
DEFINITION
·
This
field specifies instructions to the paying, accepting or negotiating bank. It
may also indicate if pre-notification of a reimbursement claim or pre-debit
notification to the issuing bank is required.
·
USAGE
RULES
·
When used
to indicate pre-notification of a reimbursement claim or pre-debit notification
to the issuing bank is required, the number and type, ie, banking or calendar,
of days within which the issuing bank has to be notified should also be
indicated.
O
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57a
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- Field 57a: 'Advise Through' Bank :
- This field identifies the bank, if different from the Receiver, through which the documentary credit is to be advised/confirmed to the beneficiary.
- According to current letter of credit rules advising bank means the bank that advises the credit at the request of the issuing bank.
- According to current letter of credit rules a credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.
- According to current letter of credit rules an advising bank may utilize the services of another bank ("second advising bank") to advise the credit and any amendment to the beneficiary. A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received.
·
Field
57a: 'Advise Through' Bank :
·
DEFINITION
·
This
field identifies the bank, if different from the Receiver, through which the
documentary credit is to be advised/confirmed to the beneficiary
O
|
72
|
- Field 72: Sender to Receiver Information:
- This field specifies additional information for the Receiver.
- According to current letter of credit rules advising bank means the bank that advises the credit at the request of the issuing bank.
- According to current letter of credit rules a credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.
- According to current letter of credit rules an advising bank may utilize the services of another bank ("second advising bank") to advise the credit and any amendment to the beneficiary. A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received.
Field 72: Sender to Receiver
Information :
DEFINITION
This
field specifies additional information for the Receiver
CODES
One
or more of the following codes may be used:
- PHONBEN Please advise/contact beneficiary by phone.
- TELEBEN Please advise the beneficiary by the most efficient means of telecommunication.
USAGE RULES
- Any code must be between slashes and must appear at the beginning of a line.
- Narrative text must not begin with a slash and, if used, must begin on a new line and be the last information in the field.
.
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