CHAPTER 41 - CYCLES OF DOCUMENTARY CREDIT, DOCUMENTARY COLLECTION AND GUARANTEES ( Important )

Letter of Credit or Documentary Credit

Here Left Hand side is Export and Right Hand side is Import

In Step 6 the Advising bank will become Negotiating/Nominated Bank or (Confirming Bank if Applicable)

 

Documentary Collection

Here Left Hand side is Export and Right Hand side is Import

Here Seller is the Drawee or Exporter and Buyer is the Drawer or Importer

Bank Guarantees

Here the Principal is also known as Applicant

The above is my Last Chapter in this Blog

All my Chapters in this Basics of Trade Finance is Completed, 

Note: All the Chapters which I post here are taken from many books, Internet sites and rephrased and edited by me

I Sincerely Thank Adarsh Varma Ashokan who Encouraged me and helped me to put this Blog.  

CHAPTER 40 – SWIFT ( Important )

Category 4 Messages

Collections and Cash Letters

SWIFT Message Type	Description
MT 400	Advice of Payment
MT 405	Clean Collection
MT 410	Acknowledgment
MT 412	Advice of Acceptance
MT 416	Advice of Non-Payment/Non-Acceptance
MT 420	Tracer
MT 422	Advice of Fate and Request for Instructions
MT 430	Amendment of Instructions
MT 492	Request for Cancellation
MT 495	Queries
MT 496	Answers
MT 499	Free Format Message

Category 7 Messages

Documentary Credit and Guarantees

SWIFT Message Type	Description
MT 700	Issue of a Documentary Credit
MT 701	Continuation of Issue of a Documentary Credit
MT 705	Pre-Advice of a Documentary Credit
MT 707	Amendment to a Documentary Credit
MT 710	Advice of a Third Bank’s Documentary Credit
MT 711	Continuation of Advice of a Third Bank’s Documentary Credit
MT 720	Transfer of a Documentary Credit
MT 721	Continuation of Transfer of a Documentary Credit
MT 730	Acknowledgment
MT 732	Advice of Discharge
MT 734	Advice of Refusal
MT 740	Authorization to Reimburse
MT 742	Reimbursement Claim
MT 747	Amendment to an Authorization to Reimburse
MT 750	Advice of Discrepancy
MT 752	Authorization to Pay, Accept or Negotiate
MT 754	Advice of Payment/Acceptance/Negotiation
MT 756	Advice of Reimbursement or Payment
MT 760	Guarantee
MT 767	Guarantee Amendment
MT 768	Acknowledgment of a Guarantee Message
MT 769	Advice of Reduction or Release
MT 790	Advice of Charges, Interest and Other Adjustments
MT 791	Request for Payment of Charges, Interest and Other Expenses
MT 792	Request for Cancellation
MT 795	Queries
MT 796	Answers
MT 799	Free Format Message

 

Category 1 & 2 Messages

For Funds Transfer Payments in Trade Finance

MT 103	Single Customer Credit Transfer
MT 202	General Institution Financial Transfer
MT 202C	Cover Payments (Combination of MT103 & MT202)