Letter of Credit Forum

Hi  warlord9609

• Example of swift message Type 734 Advice of Refusal 

Sender:

Receiver:

20: Sender's TRN
     123456789
 21: Presenting Bank's Reference
     987654321
32A: Date and Amount of Utilisation
     Date           : 23 December 2008
     Currency       : USD (US DOLLAR)
     Amount         :                #130000,00#
 72: Sender to Receiver Information
     WE HAVE RECEIVED DOCS AND NOTICED
     THE FOLLOWING DISCREPANCIES
77J: Discrepancies
     1- L/C EXPIRED
     2-L/C OVERDRAWN
     DUE TO THE ABOVE MENTIONED DISCREPANCIES,
     DOCS. ARE REJECTED
     USD 100.00 DISC. FEE AND ALL OUR RELATIVE SWIFT
     CHARGES WILL BE CLAIMED.
77B: Disposal of Documents
     NOTIFY
---------------------------------------------------

• According to UCP600 article 16(C) and swift standared messages one of the following codes may be used under feild 77(b):

1. HOLD
   means: that Documents held at your disposal.
2. NOTIFY
   means: that Documents held until the issuing bank receives a waiver from the applicant and agrees to accept it, or receives further instructions from the presenter prior to agreeing to accept a waiver.
3. PREVINST
   means: Acting in accordance with instructions previously received from the presenter.
4. RETURN
   means: Documents being returned to you.

Best Regards

Mohammed Imam

mohdimam@yahoo.com