MT 720 Examples

Example 1 Issue of a Documentary Credit

Narrative

Motoimport, PO Box 9, Amsterdam, orders motor cycle and car parts from London Motospares Ltd., 12 Cycle Square, London.

London Motospares Ltd. will obtain these parts from Cyclist Ltd., Singapore. It therefore requests a transferable documentary credit in its own favour and transfers it in favour of Cyclist Ltd.

Motoimport banks with Nederlandsche Middenstandsbank, Amsterdam.

London Motospares Ltd. banks with Royal Bank of Scotland, London.

Cyclist Ltd. banks with the Hong Kong and Shanghai Banking Corporation, Singapore.

The documentary credit is comprised of the following:

Type of Credit: IRREVOCABLE/TRANSFERABLE
Documentary Credit Number: DAE74568
Date of Issue: 21 July 2003
Expiry Date: 30 September 2003
Place of Expiry: London
Amount: Pounds Sterling 123,675
Available With: Advising Bank
By payment

Shipment:

400 Fuel tanks model 1320 AA cont, 10 gall.

120 clutches 4 gangs model A 154

800 cylinders 150 cc model C45-15

600 rear wheels complete 28" magnesium model MW 123-28

120 fuel-injection sets complete model A 156-F

FCA Singapore

Against presentation of the following documents :

Special Conditions:

Documents are to be presented within 10 days after the date of issuance of the shipping documents.

The advising bank may add its confirmation to the credit.

Shipment will be from Singapore to Port of Rotterdam.

Transhipment is permitted.

Partial shipments are not permitted.

Information Flow

SWIFT Message MT 700

Explanation Format
Sender NMBANL2A
Message Type 700
Receiver RBOSGB2L
Message Text
Seq. of Total :27:1/1
Form of D/C :40A:IRREVOCABLE TRANSFERABLE
D/C Number :20:DAE74568
Date of Issue :31C:030721
Applicable Rules
:40E:UCP LATEST VERSION
Date and Place of Expiry
:31D:030930LONDON
Expiry Date
:31D:030930LONDON
Applicant :50:MOTOIMPORT
PO BOX 9
AMSTERDAM
Beneficiary :59:LONDON MOTOSPARES LTD
12 CYCLE SQUARE
LONDON
Curr/Amount :32B:GBP123675,
Additional Amounts Covered :39C:FREIGHT MAY BE PAID IN EXCESS OF CREDIT AMOUNT AGAINST FREIGHTNOTE IN WHICH CASE CTD TO BE STAMPED FREIGHT PREPAID
Available With...
By...
:41A:RBOSGB2L
BY PAYMENT
Partial Ship. :43P:NOT ALLOWED
Transhipment :43T:ALLOWED
Taking in charge :44A:SINGAPORE
Transport ... :44B:ROTTERDAM
Description of Goods :45A:+400 FUEL TANKS MODEL 1320 AA CONT. 10 GALL.
+120 CLUTCHES 4 GANGS MODEL A 154
+800 CYLINDERS 150CC MODEL C45-15
+600 REAR WHEELS COMPLETE 28 IN MAGNESIUM MODEL MW 123-28
+120 FUEL-INJECTION SETS COMPLETE MODEL A 156-F
+FCA SINGAPORE
Documents Required :46A:+SIGNED COMMERCIAL INVOICE IN FIVE-FOLD
+COMBINED TRANSPORT DOCUMENTS (FULL SET) EVIDENCING TAKING IN CHARGE OF THE MERCHANDISE AS A FULL CONTAINER LOAD FOR SHIPMENT BY OCEAN VESSEL TO ROTTERDAM ISSUED TO THE ORDER AND BLANK ENDORSED DATED NOT LATER THAN 030920
+PACKING LIST IN FIVE-FOLD
+DECLARATION ISSUED BY THE COMPANY UNDERSIGNING THE CTD THAT THE GOODS WILL BE SENT BY VESSEL PLYING IN REGULAR LINE-SERVICE
Period for Presentation :48:DOCUMENTS MUST BE PRESENTED WITHIN 10 DAYS AFTER DATE OF ISSUE OF CTD
Confirm Instructions :49:MAY ADD
End of Message Text/Trailer

Example 2 Transfer of a Documentary Credit

Narrative

On the instructions of London Motospares Ltd., Royal Bank of Scotland transfers the documentary credit (reference IMP124678) to Hong Kong and Shanghai Banking Corporation, Singapore, in favour of Cyclists Ltd., 498 Wheeler St., Singapore.

The amount of the transferred credit is Pounds Sterling 100,000.

Information Flow

SWIFT Message MT 720

Explanation Format
Sender RBOSGB2
Message Type 720
Receiver HSBCSGSG
Message Text
Seq. of Total :27:1/1
Form of D/C :40B:IRREVOCABLE ADDING OUR CONFIRMATION
Transferring Bk Ref :20:IMP124678
D/C Number :21:DAE74568
Date of Issue :31C:030721
Applicable Rules
:40E:UCP LATEST VERSION
Date and Place of Expiry
:31D:030930LONDON
Expiry Date
:31D:030930LONDON
Applicant :50:LONDON MOTOSPARES LTD
12 CYCLE SQUARE
LONDON
Beneficiary :59:CYCLIST LTD
498 WHEELER ST
SINGAPORE
Currency/Amount :32B:GBP100000,
Additional Amounts Covered :39C: FREIGHT MAY BE PAID IN EXCESS OF CREDIT AMOUNT AGAINST FREIGHTNOTE IN WHICH CASE CTD TO BE STAMPED FREIGHT PREPAID
Available With... By... :41A:RBOSGB2L BY PAYMENT
Partial Ship. :43P:NOT ALLOWED
Transhipment :43T:ALLOWED
Taking in charge :44A:SINGAPORE
Transport ... :44B:ROTTERDAM
Description of the Goods :45A:+400 FUEL TANKS MODEL 1320 AA CONT. 10 GALL.
+120 CLUTCHES 4 GANGS MODEL A 154
+800 CYLINDERS 150CCMODEL C45-15
+600 REAR WHEELS COMPLETE 28 IN MAGNESIUM MODEL MW 123-28
+120 FUEL-INJECTION SETS COMPLETE MODEL A 156-F
+FCA SINGAPORE
Documents Required :46A:+SIGNED COMMERCIAL INVOICE IN FIVE-FOLD
+COMBINED TRANSPORT DOCUMENTS (FULL SET) EVIDENCING TAKING IN CHARGE OF THE MERCHANDISE AS A FULL CONTAINER LOAD FOR SHIPMENT BY OCEAN VESSEL TO ROTTERDAM ISSUED TO THE ORDER AND BLANK ENDORSED DATED NOT LATER THAN 030920
+PACKING LIST IN FIVE-FOLD
+DECLARATION ISSUED BY THE COMPANY UNDERSIGNING THE CTD THAT THE GOODS WILL BE SENT BY VESSEL PLYING IN REGULAR LINE-SERVICE
Period for Presentation :48:DOCUMENTS MUST BE PRESENTED WITHIN 10 DAYS AFTER DATE OF ISSUE OF CTD
Confirm Instructions :49:WITHOUT
End of Message Text/Trailer