SWIFT for Corporates - Standards MT - Message ...

1 1 Solutions SWIFT for Corporates Standards MT Messages Implementation Guide Volume II - Trade Finance Standards This document describes the rules you must follow when you send or receive MT 798 messages for Trade Finance using SWIFTNet FIN in SCORE (Standardised corporate Environment). 18 May 2018 SWIFT for Corporates 2 Standards MT Messages Implementation Guide Table of Contents Table of Contents .. 2 Preface .. 4 1 General Information .. 5 Versions of Implementation Guide .. 5 Effective Date .. 5 General Information on BICs .. 5 General Information on IBANs .. 5 About this Implementation Guide Version 5 .. 5 2 Trade Finance Standards .. 7 Import Documentary Credit Transactions ..24 Application for Documentary Credit.

2 27 Notification of Draft or Issuance of Documentary Credit .. 54 Request for Amendment of Documentary Credit .. 65 Notification of Amendment of Documentary Credit .. 84 Notification of Acceptance/Refusal of Amendment .. 92 Advice of Discrepancy .. 98 Response to Advice of Discrepancy .. 108 Notification of Advice of Payment/Acceptance/Negotiation .. 115 Notification of Advice of Discharge .. 121 Notification of Advice of Refusal .. 129 Notification of Advice of Reimbursement or Payment .. 138 Settlement of Import Documentary Credit .. 146 Export Documentary Credit Transactions ..155 Advice of Documentary Credit .. 158 Advice of Amendment or Confirmation of Documentary Credit .. 170 Advice of Acceptance/Refusal of Amendment.

3 180 Advice of Third bank Documentary Credit .. 186 Response to Documentary Credit Presentation .. 202 Response to Advice of Discrepant Presentation .. 209 Notification of Authorisation to Pay, Accept or Negotiate .. 216 Notification of Advice of Payment/Acceptance/Negotiation .. 223 Notification of Advice of Discharge .. 223 Notification of Advice of Refusal .. 223 Notification of Advice of Reimbursement or Payment .. 223 Request for Transfer of a Documentary Credit .. 224 Advice of Transfer of a Documentary Credit .. 231 Notification of Transfer of a Documentary Credit .. 249 Settlement of Export Documentary Credit .. 259 Guarantee / Standby Letter of Credit Transactions ..268 Application for Issuance of Guarantee / Standby Letter of Credit.

4 273 Notification of Draft or Issue of Guarantee / Standby Letter of Credit .. 300 Request for Amendment of Guarantee / Standby Letter of Credit .. 315 Notification of Amendment of Guarantee / Standby Letter of Credit .. 330 Response to Amendment of Guarantee / Standby Letter of Credit .. 339 Advice of Acceptance / Refusal of Amendment of Guarantee / Standby Letter of Credit349 Advice of issued Guarantee / Standby Letter of Credit .. 357 Advice of amended Guarantee / Standby Letter of Credit .. 368 Query to extend or pay Guarantee / Standby Letter of Credit .. 377 Table of Contents 3 Response to extend or pay Guarantee / Standby Letter of Credit .. 385 Notification of Non Extension of Guarantee / Standby Letter of Credit.

5 391 Demand for payment under Guarantee / Standby Letter of Credit .. 400 Demand refusal advice under Guarantee / Standby Letter of Credit .. 410 Acknowledgment of demand for payment under Guarantee / Standby Letter of Credit . 420 Notification of demand for payment of Guarantee / Standby Letter of Credit .. 425 Settlement of Guarantee / Standby Letter of Credit claim for payment and/or charges . 434 Request for Guarantee / Standby Letter of Credit Reduction / Release .. 445 Advice of Guarantee / Standby Letter of Credit Reduction or Release .. 450 Common Group Messages ..459 Response to a Draft Undertaking .. 462 Request for Cancellation .. 468 Notification of Cancellation / Refusal .. 473 Notification of Settlement of Charges.

6 479 Request for Settlement of Charges .. 486 Free Format Message - corporate -to- bank .. 494 Free Format Message - bank -to- corporate .. 500 Ancillary Message corporate -to- bank .. 506 Ancillary Message bank -to- corporate .. 514 Legal Notices ..520 4 Preface Purpose of this document The purpose of this document is to document how the FIN Standards related to Trade Finance must be implemented and used between Corporates and financial institutions. It sets out those Standards (also called Message Types or MTs) that are suitable for this purpose and provides usage rules and guidelines to ensure their consistent implementation. Participants in the SCORE service are expected to adhere to the rules in this document.

7 Where messages are exchanged in a MA-CUG or other SWIFT environment, adherence to these rules must not be assumed. Note SCORE participants are not required to support all messages, all Message functionality and usage in this document, but where they do, these rules must be followed. This guide is not a Standards handbook. The detailed description of the FIN Standards can be obtained from the SWIFT User Handbooks, Category Volumes. Where applicable, this guide refers to those handbooks. Document structure The Standards MT Messages Implementation Guide is published in two volumes: Volume I: Cash Management, Treasury Markets, and Securities Standards Volume II: Trade Finance Standards Volume II is structured as follows: Section 1: provides information about the notions of BIC (Business Identifier Code) and the IBAN (International bank Account Number) and important information to correctly use the messages.

8 Section 2: deals with trade finance Standards (CAT 7) Wherever possible, business scenarios and examples are provided to best illustrate how the Standards must be used. This document uses the following typographical conventions: Bold Names of files, parameters, API calls, user logon, and logon groups References to a directory or a menu GUI elements and command names Italics Important information and document names Courier User input, directory paths, parameter values, place holders, and system output examples General Information 18 May 2018 5 1 General Information Versions of Implementation Guide The following table lists the versions of the Trade Finance Standards Implementation Guide that have been published.

9 Version Date Version 1 May 2008 Version 2 November 2008 Version 3 August 2010 Version 4 December 2012 Version 5 July 2017 Version March 2018 Version (this version) Effective Date Version contains information effective as of the Standards Release (SR) November 2018 for Letters of Credit ( LCs) and Common Group messages, and Standards Release November 2019 for guarantees/standby LCs. It replaces all previous versions of the Implementation Guide. General Information on BICs A BIC (Business Identifier Code) is an identifier that is assigned to all SWIFT FIN-connected financial and non-financial institutions. It can also be used to identify other institutions, not connected to the SWIFT FIN network. The scope of this code was extended in 2009 to identify non-financial organisations, including Corporates and its name was changed from " bank Identifier Code" to "Business Identifier Code".

10 The current version of the ISO 9362 Standard is from 2014. The SWIFT FIN network validates all party fields in the interbanlk FIN messages on the presence of the appropriate BIC. General Information on IBANs For accounts serviced in countries that have implemented IBAN (International bank Account Number), the IBAN should be used to identify the account, regardless of the Message type. About this Implementation Guide Version 5 Implementation Dates This MIG V5 contains the specifications both for LCs and guarantees/standby LCs. The V5 for LCs and common messages must be implemented at the same time as the new/updated LC interbank MTs, in SR 2018. SWIFT for Corporates 6 Standards MT Messages Implementation Guide The V5 for guarantees/standby LCs must be implemented at the same time as the new/updated guarantees/standby LCs interbank MTs, in SR 2019.