SWIFT Codes in LC

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Fields in LC:
 41A: Available with… By…
 42A: Drawee: (the person thereby directed to pay is called the "drawee")
It is a field in MT 700 swift message type that is used to identify the drawee of the drafts to
be drawn under the documentary credit. It is an optional field.
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.
USAGE RULES
The drawee must be a bank. If drafts on the applicant are required, they are to be listed as
documents in field 46A.
The Party Identifier must not be present.
CONDITIONAL RULES
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
a field in MT 700 swift message type that is used to specify the tenor of drafts to be drawn
under the documentary credit.
Notes on Bill of Exchange:
There are three parties to a draft: The drawer (in an LC - the beneficiary); the drawee (in an LC -
the issuing bank); and the payee (in this case the beneficiary) to whose order it is drawn. Because
the issuing bank cannot pay the payee direct, the payee needs to endorse the draft so that the
drawee can pay the presenting party (your bank). This is what the CB is instructing.
If you blank endorse the draft with simply the beneficiary's name and your signature, no
subsequent party can add their valid endorsement or an endorsement restricting who is to be paid,
only yours is valid. Very sadly, most bankers have no clue about this and will pointlessly add their
own bank's endorsement as just their bad habit.
As for 42A, you can show simply the SWIFT code as the drawee, or the full name of the issuing bank
or confirming bank indicated in that SWIFT address, as per B9 of ISBP745.
If it is blank endorsed then no other party has authority to add any further endorsement.
 Field 42M: Mixed Payment

Field 42M: Mixed Payment specifies the payment dates, amounts and/or method for their determination in a
documentary credit which is available by mixed payment.
This is an optional field.
Mixed payment is not covered under the letter of credit rules. But parties can utilize a letter of credit which is
available by mixed payments.
There are 3 main scenarios exists in a mixed payment letter of credit:
 Scenario 1: The beneficiary receive an advance payment before the shipment and remaining amount
will be payable against the shipping documents,
 Scenario 2: Some of the contract amount is payable against the shipping documents and the
remaining amount will be paid after the shipment such as installation of the machinery etc.,
 Scenario 3: Mixed payment consists of both advance payment, payment against the shipping
documents and payment after the shipment. (Option 3 is the combination of Option 1 and Option 2)
Mixed Payment Example:

 50 percent of the total lc value payable at sight as an advance against presentation of simple invoice.
 40 percent of the total lc value payable at sight against presentation of stipulated documents under
field 46A.
 10 percent lc value payable at sight against presentation of following documents: commercial invoice
for 10 percent of lc value completion of installation certificate issued by beneficiary and to be duly
counter signed by applicants authorized signatory , whose signature follows by courier.
MT 700
Field 42M: Mixed Payment Details:
USAGE RULES
This field specifies the payment dates, amounts and/or method for their determination in a documentary credit
which is available by mixed payment.
CONDITIONAL RULES
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 48: Period of presentation in Days

Format:
 Field 43P: Partial Shipments:

DEFINITION
This field specifies whether or not partial shipments are allowed under the documentary credit.
 Field 43T: Transshipment

A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit
prohibits transshipment, if the goods have been shipped in a container, trailer or lash barge as
evidenced by the bill of lading.
 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.
 Field 46A: 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 ‘+’.
 Field 47A: Additional Conditions
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SWIFT Codes in LC

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 Field 42M: Mixed Payment

Mixed Payment Example:

 Field 48: Period of presentation in Days

 Field 43P: Partial Shipments:

 Field 43T: Transshipment

 Field 44A: Place of Taking in Charge/Dispatch from …/ Place of Receipt

 Field 46A: Documents Required

 Field 47A: Additional Conditions

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