MT700 (Issue of Documentary Credit)

MT700 is a specialized message format under the SWIFT (Society for Worldwide Interbank Financial Telecommunication) messaging standards used for issuing documentary credits, officially titled 'Issue of Documentary Credit'. It is sent by the issuing bank to the advising bank, instructing it to advise the beneficiary that a documentary credit has been issued. Usage scenario: When an importer applies to issue a letter of credit, the issuing bank transmits the credit terms to the advising bank in the exporter's location via an MT700 message. Precautions: MT700 contains all key elements of the credit, such as amount, expiry date, shipment date, document requirements, and payment method; banks must fill it out strictly in accordance with the SWIFT manual, as any error may render the credit invalid or cause delays. Distinction from other terms: MT701 is used for issuing brief cable credits, MT707 for amending credits, and MT710/MT720 for transferring credits. Foreign trade practitioners should be familiar with the meaning of each field in MT700 in order to review credit terms, ensure consistency with the contract, and avoid the risk of soft clauses.