LC · MT700

LC terms decoder

Paste a SWIFT MT700 letter-of-credit message. The tool decodes each tag and explains it in plain English, with watch-outs from real chemical-trade LCs.

Last updated 2026-05-09. Math runs in your browser, no data leaves your computer.

General guidance only, not legal or professional engineering advice. Verify against the cited primary sources (IMDG, REACH, ChAFTA, RCEP, Customs Tariff Act, supplier SDS, etc.) before committing to a shipment, declaration, or contract. Sourzi assumes no liability for outcomes based on these calculators.

Full MT700 tag reference (all 36 tags)
:27:

Sequence of total

Message part number; for a single-part LC the value is 1/1.

Example: 1/1

:40A:

Form of documentary credit

Type of LC. IRREVOCABLE is the only acceptable form under UCP 600 (revocable was deprecated in UCP 500). TRANSFERABLE flags that the LC can be reissued to a second beneficiary.

Example: IRREVOCABLE TRANSFERABLE

Watch out: A REVOCABLE tag is non-compliant with UCP 600. STANDBY means a standby LC, not a commercial LC.

:20:

Documentary credit number

Issuing-bank LC reference. Quote this number on every shipping document and every invoice.

Example: BOC-LC-2026-08-12345

:23:

Reference to pre-advice

Linked SWIFT pre-advice reference if the LC was pre-advised.

:31C:

Date of issue

Date the LC was issued by the issuing bank.

Example: 260501

Watch out: Date format YYMMDD; 260501 means 2026-05-01.

:40E:

Applicable rules

UCP 600 is the standard; ISP98 for standby; eUCP for paperless presentation.

Example: UCP LATEST VERSION

:31D:

Date and place of expiry

Last date and the city where compliant documents may be presented. Documents presented after this date or to a different city are non-compliant.

Example: 261015 SHANGHAI

Watch out: Place of expiry sets the presentation jurisdiction. If LC says SHANGHAI and you present in HONG KONG, you are non-compliant.

:50:

Applicant

The buyer (importer) on whose behalf the LC was issued.

Example: ACME CHEMICALS PTY LTD, SYDNEY NSW 2000 AUSTRALIA

:51a:

Applicant bank

Bank where the applicant holds the account that will fund the LC.

:59:

Beneficiary

The seller (exporter) who will be paid against compliant documents. Name and address must match the commercial invoice exactly.

Example: SHANGHAI CHEM CO LTD, NO.1 PUDONG RD, SHANGHAI 200120 CHINA

Watch out: Spelling, abbreviations, and address punctuation must match across LC, invoice, BL, packing list, and CO. A single character mismatch is a discrepancy.

:32B:

Currency code and amount

LC face value. Currency in 3-letter ISO; amount as a decimal.

Example: USD 240000.00

:39A:

Percentage credit amount tolerance

Allowable plus-or-minus on the LC amount, given as two slash-separated percent values.

Example: 05/05

Watch out: 05/05 means plus 5 percent and minus 5 percent. Useful where shipment quantity may vary, e.g. bulk liquid.

:39B:

Maximum credit amount

Caps the LC face value when 39A tolerance does not apply.

:39C:

Additional amounts covered

Premiums, freight, insurance, or interest covered on top of 32B.

:41a:

Available with...by...

Where the LC is available (named bank or any bank) and how (sight payment, deferred payment, acceptance, or negotiation).

Example: BKCHCNBJ BY NEGOTIATION

Watch out: BY NEGOTIATION means a freely negotiable LC; you can present to any bank. BY PAYMENT WITH means restricted to the named bank only.

:42C:

Drafts at...

Tenor of any draft (bill of exchange) drawn on the LC. AT SIGHT for sight LC; 30 / 60 / 90 / 180 DAYS AFTER B/L DATE for usance.

Example: 30 DAYS AFTER BILL OF LADING DATE

:42a:

Drawee

The party on which any draft is drawn. Usually the issuing bank or a confirming bank.

:42M:

Mixed payment details

Multi-instalment or part-sight, part-usance arrangements.

:42P:

Deferred payment details

Deferred-payment LC settlement schedule (no draft, just a fixed payment date).

:43P:

Partial shipments

ALLOWED or NOT ALLOWED.

Example: ALLOWED

Watch out: NOT ALLOWED on a multi-tonne chemical cargo means one shipment for the full quantity; logistics must align.

:43T:

Transhipment

ALLOWED or NOT ALLOWED.

Example: ALLOWED

Watch out: ALLOWED is normal for chemical cargo where direct vessels are rare. NOT ALLOWED kills most Asia to Europe routings via Singapore or Port Klang.

:44A:

Place of taking in charge / dispatch / receipt

The port or inland place where the carrier takes charge of the goods.

Example: SHANGHAI PORT

:44E:

Port of loading / airport of departure

Port (sea) or airport (air) where the goods are loaded onto the carrying vessel or aircraft.

Example: SHANGHAI YANGSHAN

:44F:

Port of discharge / airport of destination

Port or airport where the goods are unloaded.

Example: SYDNEY PORT BOTANY

:44B:

Place of final destination

Final delivery place if not the discharge port (multimodal).

:44C:

Latest date of shipment

Last date the BL may be issued (for sea cargo) or the AWB may be issued (for air). BL date after this is a fatal discrepancy.

Example: 260930

Watch out: Per UCP 600 article 14, "shipment date" is the BL on-board date for sea, the AWB issue date for air.

:44D:

Shipment period

Shipping window if a single date is too tight (e.g. weekly sailings).

:45A:

Description of goods and / or services

Cargo description, quantity, unit price, and Incoterm. The invoice description must match this verbatim or be a fair restatement; gross overstatement triggers discrepancy.

Example: CITRIC ACID MONOHYDRATE FOOD GRADE 80 MT IN 25KG BAGS, USD 3000/MT CFR SYDNEY (INCOTERMS 2020)

:46A:

Documents required

List of every document the beneficiary must present. Common set: signed commercial invoice, packing list, full set 3/3 originals BL, certificate of origin, certificate of analysis, beneficiary certificate. Each item is a hurdle; missing one is a fatal discrepancy.

Watch out: Read this list against your shipping document set BEFORE the LC is accepted. Negotiate amendments before the goods ship; after the BL is issued, amendments cost money and time.

:47A:

Additional conditions

Special conditions like 3rd-party documents accepted, charterparty BL acceptable, latest presentation 21 days from BL date, etc. Most discrepancy disputes start here.

:48:

Period for presentation

Days after BL on-board date by which compliant documents must be presented. UCP 600 default is 21 days; LC can specify shorter.

Example: 21 DAYS AFTER B/L DATE

:49:

Confirmation instructions

CONFIRM (you confirm and stand behind), MAY ADD (advising bank may add at beneficiary cost), WITHOUT (no confirmation).

Example: CONFIRM

Watch out: WITHOUT confirmation leaves you with issuing-bank credit risk only. For first-time China-to-Australia trade, request CONFIRM at LC issuance, even at extra fee.

:53a:

Reimbursement bank

Bank that reimburses the negotiating / paying / accepting bank for funds advanced to the beneficiary.

:57a:

Advise through bank

Second-step advising bank if not the same as the beneficiary bank.

:71B:

Charges

Bank-charge allocation: ALL CHARGES OUTSIDE COUNTRY OF ISSUING BANK ARE FOR ACCOUNT OF BENEFICIARY is most common. Read carefully; can erode margin by 0.5 to 1 percent.

:78:

Instructions to paying / accepting / negotiating bank

Routing instructions for handover of funds and documents.

:72:

Sender to receiver information

Free-text bank-to-bank notes; not part of the LC terms but often clarifies routing.

LC review in chemical-trade context

A documentary credit (letter of credit, or LC) is the bank guarantee that bridges trust between an importer and an exporter who do not know each other. The LC commits the issuing bank to pay the beneficiary on presentation of compliant documents. The LC terms (the SWIFT MT700) define what "compliant" means; the beneficiary either presents documents that match the terms verbatim and gets paid, or fails to match and faces a discrepancy notice and a refusal to pay.

For Chinese-origin chemical exports to Australia, US, or Europe, the LC review is the most important commercial step after the contract is signed. The terms set the latest shipment date (44C), the partial-shipment policy (43P), the transhipment policy (43T), the documents required (46A), the additional conditions (47A), and the period for presentation (48). Each is a tripwire. Latest shipment 260930 means the BL on-board date must be on or before 30 September 2026; one day late, the LC is non-compliant. Partial shipments NOT ALLOWED means one BL for the full LC quantity; you cannot split into two containers and present two BLs. Transhipment NOT ALLOWED kills most multi-leg routings.

The documents required field (46A) is the longest and most-edited. A typical chemical-trade LC requires signed commercial invoice in 3 originals plus 2 copies, packing list in 3 originals plus 2 copies, full-set 3/3 original BL marked "Freight Prepaid" or "Freight Collect" depending on Incoterm, certificate of origin from CCPIT or CIQ, certificate of analysis from manufacturer, beneficiary certificate of compliance. Each item is a hurdle; missing one is a fatal discrepancy.

Discrepancy is the single biggest pain point. UCP 600 article 14 sets the standard for examination: documents are examined on their face for compliance with the LC terms. Common discrepancies in chemical-trade LCs: BL on-board date after 44C latest shipment; goods description in invoice does not match 45A verbatim; beneficiary spelling on invoice does not match 59 letter-by-letter; partial shipment when 43P says NOT ALLOWED; missing original BL because one was couriered separately. The LC review catches these hours, not days, before the BL is issued.

For an upgrade with discrepancy-pattern detection across 30+ common LC clauses, see Sourzi /tools/documentation/lc-document-checker-rule-based once shipped, and the Phase 3 AI-powered version at /tools/documentation/lc-document-checker-ai-powered.

Frequently asked

What is SWIFT MT700?

The standardised SWIFT message format for "Issue of a Documentary Credit". When an issuing bank opens a letter of credit, it sends an MT700 to the advising bank, which advises the beneficiary. The MT700 has roughly 35 standardised fields (tags) that carry the LC terms. This tool decodes them.

Why does this tool exist?

LC text is dense, abbreviated, and full of bank jargon. A small terminology miss at LC review (e.g. transhipment NOT ALLOWED versus ALLOWED, latest shipment date 260930 versus 260830) leads to a fatal discrepancy at presentation, which leads to non-payment or a refusal-to-pay letter from the issuing bank. Decoding each MT700 field in plain English at LC review catches issues before the goods ship.

Is this advice?

No. This is a plain-English reference for the SWIFT MT700 standard. UCP 600 governs LC interpretation; ICC Banking Commission publishes DOCDEX decisions and the ICC Opinions for case law. For high-value LCs, run a documentary-credit professional review (DOCDEX, ICC, or your bank trade-finance desk).

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