1. Messaging System User Guide
  2. Processing SWIFT Messages
  3. Documentary Credits
  4. MT 700 Issue of a Documentary Credit

12.3.1 MT 700 Issue of a Documentary Credit

This message is sent by the issuing bank to the advising bank.

It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank).

The system follows the below STP process for incoming MT700 message:

  1. When the Advising Bank receives this message, the system compares tag value of 20 in MT700 against the field ‘Source Reference’ and checks for the existence of the Pre-advice contract.
    • If a contract does not exist, then the system creates a new Export LC contract.
    • If an inactive or unauthorized contract exists, then the system moves MT700 message to a ‘Repair’ status.
    • If an active and authorized contract exists, then the system amends the operation of the contract from PAD to ADV (advice) or ANC (advice & confirm).
      • If the change is from PAD to ADV, then the system triggers APAD event.
      • If the change is from PAD to ANC, then the system triggers APAC event.
  2. The system compares the common fields available in MT705 and MT700 Swift messages, if the check box ‘Pre-advice Fields Validation on STP of 700 Required’ is checked.
    • If the any of the fields in both the messages are different, then the system moves the contract in ‘Repair’ status, which can be resolved and processed manually. The system updates ‘Mismatch between Pre-advice and Operative LC’ as the ‘Repair’ reason.
    • If any field values are missing in a contract created out of MT705 message, the system updates these values with those available in MT700.
  3. The system overwrites all the values of the contract with those available in MT700 message, if the check box ‘Pre-advice Fields Validation on STP of 700 Required’ is unchecked.
    Maximum Length: 10000
    • Up to eight MT701s may be sent in addition to the MT700.
    • Information conveyed in a designated field in this message must not repeat information in the same field in the related MT 700. Information in this message must not conflict with any information that is present in the related MT 700.

Parent topic: Documentary Credits