MT700 is the SWIFT message used by an issuing bank to communicate the terms of a commercial documentary letter of credit to the advising bank. It is the trade-finance equivalent of an MT103 in importance.
Key fields: 27 (sequence), 40A (form of LC — irrevocable, transferable, etc.), 20 (LC reference), 31C (date of issue), 31D (expiry), 32B (currency and amount), 41A (available with bank), 42C (drafts), 43P (partial shipments allowed?), 43T (transhipment), 44A/E (place of taking in charge / port of loading), 44F (port of discharge), 44B (place of final destination), 45A (description of goods), 46A (documents required), 47A (additional conditions), 50 (applicant), 59 (beneficiary), 71D (charges), 72 (sender to receiver).
Field 45A is critical — describes the goods in enough detail for the bank to verify against the invoice and bill of lading. Vague descriptions cause discrepancies.
Field 46A lists the documents required (commercial invoice in N copies, full set of bills of lading consigned to X, packing list, certificate of origin, insurance certificate). Document set is negotiated between buyer and seller before issuance.
Field 47A is the discretionary clauses field — Inspection certificates, beneficiary statements, language requirements. Heavily customised per LC.
Form (field 40A): IRREVOC = irrevocable (norm); IRREVOC TRANS = transferable; CONFIRM = confirmed by advising bank.
After issuance: amendments via MT707; transfer to second beneficiary via MT720; refusal of presented documents via MT734.
Yes via MT707, with consent of beneficiary. Substantive amendments require beneficiary acceptance.
Allows the beneficiary to transfer the credit in whole or part to a second beneficiary (often a sub-supplier). Initiated via MT720.
Confirmed: advising bank adds its own undertaking to pay. Advised: advising bank just notifies the beneficiary; pays only as reimburser of the issuing bank. Confirmation is added for risk reasons.
Trade-finance MT 7xx messages remain on MT for now. ISO 20022 trade-finance equivalents are in development but not in production at scale.