The bank sees the documents, not the goods.

How the text is built: MT700 fields

A credit is issued between the issuing bank and the advising bank as a standard SWIFT message, so it arrives with the same field numbers anywhere in the world. The table lists the fields that concern the shipment, in order. "M" is mandatory, "O" optional, "C" conditional.

The eight fields to read first

When a credit arrives the whole text has to be read, but the shipment plan is built from eight fields. The order matters: time first, then place, then documents.

31D — Expiry

The documents must be at the bank by this date at the latest. The vessel may have sailed well before; if expiry passes while the documents are with the courier, the presentation is late.

44C — Latest shipment date

The "on board" date on the bill of lading may not be later than this. When booking, think of the date the on-board notation will be dated, not the vessel's ETD; if the vessel slips a week the field is breached.

48 — Period for presentation

How many days after the shipment date the documents must be presented. If blank, 21 calendar days. If the gap between 44C and 31D is shorter than this period, the credit is flawed from the day it is issued.

43P / 43T — Partial shipments and transhipment

If two containers go on two vessels, read 43P. If transhipment is prohibited, read 43T — but for containerised cargo read the Art. 20(c) exception.

44E / 44F — Ports

The port of loading and discharge on the bill of lading must be consistent with the names in these fields. "Any Turkish port" gives room; "Ambarlı" makes a loading at Asyaport a possible discrepancy.

46A — Documents required

How many originals, who issues, what they must say. "Ocean bill of lading issued by carrier" excludes a forwarder's house bill; "consigned to order of [bank]" dictates the shipping instruction.

47A — Additional conditions

Free text, and the source of most discrepancies: container and seal numbers on the documents, vessel age, class or flag, how many days for couriering documents. A condition that cannot be met means the credit is amended, not ignored.

41a — Availability

Sight payment, deferred, acceptance or negotiation. If deferred, the tenor in 42C runs from the bill of lading date: the later the loading, the later the collection.

Transport document articles: UCP 600 Art. 19–24

UCP 600 writes a separate article for each transport document. The four the shipping side meets most:

Art. 20 — Bill of lading

Must show the carrier's name and be signed by the carrier, the master or a named agent for either. Must carry an "on board" notation showing the goods were loaded on the named vessel, with its date; that date is the date of shipment, not the issue date. Must show carriage from the port of loading to the port of discharge stated in the credit.

Art. 20(c) — Transhipment exception

If the entire carriage is covered by one bill of lading, the document may indicate that transhipment will or may take place. Even where the credit prohibits transhipment, a bill of lading indicating it is acceptable if the goods are shipped in a container, trailer or LASH barge. On container shipments, 43T "NOT ALLOWED" is therefore not a bar on its own.

Art. 23 — Air transport document

The date of issuance is deemed the date of shipment, unless the document carries a specific notation of the actual flight date, which then prevails. Because an air waybill does not represent the goods, it cannot be made out "to order".

Art. 24 — Road, rail and inland waterway documents

CMR and CIM notes must show the carrier's name and signature or stamp; the date of receipt or dispatch is deemed the shipment date. If the document does not state the number of originals, the copy presented is sufficient.

There is also Art. 19: the multimodal transport document. A document covering at least two modes — such as a FIATA FBL — is accepted only if the credit allows it. For bill of lading types and the endorsement chain see the bill of lading page.

Time limits: 5 days, 21 days, expiry

• Examination period — Art. 14(b): a maximum of five banking days following the day of presentation. The bank decides on compliance within this period; if it refuses, under Art. 16 it lists all discrepancies in a single notice.
• Presentation period — Art. 14(c): if the credit states no period, the transport document must be presented within 21 calendar days after the date of shipment, and in any event no later than the expiry date. If field 48 states a period, that period applies.
• Expiry — 31D: the last day and place of presentation. If the gap between expiry and the latest shipment date is shorter than the presentation period, the credit is effectively unusable; ask for an amendment as soon as it arrives.
• Data consistency — Art. 14(d): data on the documents need not be identical but must not conflict. "12 pallets" on the invoice and "11 pallets + 1 carton" on the packing list is a conflict.

Insurance and tolerances

Insurance document — Art. 28. Must be issued and signed by an insurance company, an underwriter or their agent; its date may not be later than the date of shipment (unless it shows cover effective from a date no later than shipment). It must be in the currency of the credit. If the credit states no percentage, the minimum cover is 110% of the CIF or CIP value of the goods; where that value cannot be determined from the documents, 110% of the amount for which honour is requested or of the invoice value, whichever is greater.

Tolerances — Art. 30. "About" or "approximately" before the amount, quantity or unit price allows ±10%. If the quantity is not stated in packing units or individual items and the amount drawn does not exceed the credit amount, a ±5% quantity tolerance applies automatically. This saves bulk cargo; it does not apply to packaged goods.

Partial shipments — Art. 31. Allowed unless the credit prohibits them. Several bills of lading on the same vessel and voyage — even with different loading dates and ports — are one presentation, not a partial shipment.

Pre-shipment checklist

These are the checks we run before booking; each maps to an article of UCP 600.

1. Vessel choice against 44C. A vessel whose on-board date will not exceed 44C; cut-off a week earlier.
2. Shipping instruction against 46A. Consignee and notify fields, "freight prepaid/collect", number of originals, carrier signature requirement. Is a house bill accepted?
3. Port names against 44E/44F. The port name on the bill must not conflict with the credit's spelling; adding a UN/LOCODE is not a problem.
4. 45A and Art. 18(c). Goods description on the invoice corresponding with the credit; general terms on the bill and packing list, but no conflict.
5. 47A line by line. Container and seal numbers, marks, vessel restrictions, document order. Amendment for anything that cannot be met.
6. Shipment plan against 43P/43T. Partial shipment and transhipment permissions; the Art. 20(c) note for containers.
7. Insurance, Art. 28. 110% on CIF/CIP sales, currency, date, clause level (Incoterms® 2020: ICC (C) minimum under CIF, ICC (A) under CIP).
8. Calendar. Loading → collecting documents → presentation: field 48 or 21 days; expiry in 31D; courier time.