1. Letter of Credit User Guide
  2. Automatic Processes
  3. Branch Parameters Details
  4. STP of MT707 - Amendment to Documentary Credit

12.1.20 STP of MT707 - Amendment to Documentary Credit

Upload of MT707 triggers amendment of an export LC contract. The contract reference number on which the amendment needs to be triggered is derived primarily based on the value of field 21 in the MT707. The system fetches the contract reference number of the export LC contract using field 21. If the reference is not found, then it fetches the user reference number using field 21. If the value in field 21 is ‘NONREF’, the system will check for field 23.

If field 23 exists, then it will fetch the contract reference number using party as ‘ISB’ and the issuing bank reference number from field 23. If the contract reference is not found then the system will reject the record. If field 23 doesn’t exist then the system will fetch the contract reference number using party as ‘ISB’ and reference number of party ‘ISB’ from field 20. If the contract reference number is not found for above combination, then it will fetch the contract reference number using party as ‘ABK’ and reference number of party ‘ABK’ from field 20. If the contract reference is not found, then the system will reject the record.

The system fetches the amendment amount from field 34B. If the currency in field 34B does not match the currency of the existing contract, then system will reject the record.

The system fetches the new expiry date of the contract from field 31E. The following table lists the mapping that should exist between the SWIFT tags in MT707 and the fields in the LC Contract screen.

Table 12-12 SWIFT tags in MT707 and the fields in the LC Contract

Status Tag value Description Oracle Banking Trade Finance field value Remarks
M 20 Senders reference   Not needed for amendment
M 21 Receiver reference Contract reference or user reference of LC contract  
O 23 Issuing bank reference Their reference of party ‘ISB’ LC reference in issuing bank
O 31C Date of issue   Not needed for amendment.
O 52A Issuing bank   Not needed for amendment.
O 30 Amendment Date Issuing bank amendment date The system will defaults the application date in amendment initiation date.
O 26E Number of amendment amendment number in others tab  
M 59 Beneficiary   Not needed for amendment
O 31E New date of expiry Expiry date  
O 32B Increase of amount    
O 33B Decrease of amount    
O 34B New documentary credit amount after amendment LC amount during amendment  
O 39A Percentage credit amount tolerance About clause, positive and negative tolerance If not present then about clause should be ‘None’. If present then the about clause should be ‘About’ with positive and negative tolerance
O 39C Additional amounts covered Additional amounts in others tab  
O 44A Loading on board/dispatch Shipment from  
O 44B For transportation to shipment to  
O 44C Latest shipment date Latest shipment date  
O 44D Shipment period Shipment period  
O 72 Sender to receiver info FFT Tag 72 would be uploaded as FFT with FFT code as ‘SND2RECINF O’ and message type as ‘AMD_EXP_C R’
The system will check for the following while processing a SWIFT upload:
  • If field 34B is present then the following need to be available:
    • If field 32B is present, then the difference between the amount in 34B and current LC amount should be equal to the amount in 32B.
    • If field 33B is present, then the difference between the current LC amount and amount in 34B should be equal to the amount in 33B.
If the amount after amendment is less than the availed amount, then system will reject the record. The system creates a new version of an export LC after amendment upload. The STP process creates an authorized or unauthorized amendment record based on the post upload status maintained in the Upload Source Preferences screen.

Parent topic: Branch Parameters Details