DLC MT700: How to Read and Verify a Documentary Letter of Credit
By the Vanguard Verify desk · Published 2026-10-24 · Updated 2026-11-03
Short answer: an MT700 is the SWIFT message an issuing bank sends to an advising bank to issue a documentary letter of credit (DLC). The seller (beneficiary) does not receive an MT700 from the buyer — it receives an advice from its own or a nominated advising bank, which under UCP 600 Article 9 must satisfy itself as to the apparent authenticity of the credit before advising it. Draft "DLC verbiage" is only a proposal; the MT700 is the issued instrument.
The MT700 fields that matter most
| Field | Name | What to check |
|---|---|---|
| 40A | Form of Documentary Credit | Should read IRREVOCABLE (or IRREVOCABLE TRANSFERABLE if agreed) |
| 20 | Documentary Credit Number | Reference you will quote on every presentation |
| 40E | Applicable Rules | Normally UCP LATEST VERSION (UCP 600) |
| 31D | Date and Place of Expiry | Leaves enough time to ship and present |
| 50 / 59 | Applicant / Beneficiary | Exact legal names matching your contract |
| 32B | Currency and Amount | Matches contract value and tolerance |
| 41a | Available With… By… | Which bank pays, and by payment, acceptance, negotiation or deferred payment |
| 44A–44F, 43P, 43T | Shipment terms | Ports, latest shipment date, partial shipments, transhipment |
| 45A / 46A / 47A | Goods / Documents / Additional conditions | Documents you can actually produce; no conditions outside your control |
| 49 | Confirmation Instructions | CONFIRM, MAY ADD or WITHOUT |
How to verify a DLC
- Insist it is advised through a bank you choose. Give the buyer your bank's name and BIC for field 57a (Advise Through Bank) or as advising bank.
- Wait for your bank's written advice. A scanned MT700, a "pre-advice" from a broker or a SWIFT screenshot is not an issued credit.
- Check the issuing bank. Ask your bank to confirm the issuer's BIC is genuine and that the bank and country risk are acceptable; ask whether it will add confirmation.
- Read 46A and 47A line by line. Reject clauses that make payment depend on a document only the buyer can issue (for example, a buyer-signed acceptance certificate).
- Verify the applicant. Confirm the buyer is a real, active company in its official registry and in GLEIF.
- Amend before you ship. Discrepancies are far cheaper to fix by amendment (MT707) than after presentation.
Red flags
- Buyer asks the seller to pay fees to "activate" or "release" an MT700.
- Claims that an MT700 will be sent "via MT103" or "via MT799" — these are different message types with different purposes.
- 40E missing, or the credit marked revocable.
- Expiry or latest shipment date that is impossible to meet.
- Issuing bank unknown to your bank, or BIC that does not match the bank named.
Related: SBLC vs LC and MT760 vs MT799.
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FAQ
What does DLC mean in trade?
Documentary Letter of Credit: a bank undertaking to pay the seller against presentation of complying documents, usually subject to UCP 600.
Who sends an MT700?
The issuing bank sends the MT700 to the advising bank. The beneficiary receives an advice from that bank, not from the buyer.
What is DLC verbiage?
Draft wording for a letter of credit that the parties agree before the buyer applies to its bank. It is not a credit until the bank issues it.
What message amends an MT700?
Amendments to a documentary credit are sent as an MT707.
What is the DLC MT700 meaning?
MT700 is the SWIFT message an issuing bank uses to issue a documentary letter of credit (DLC). "DLC MT700" means the credit is sent bank-to-bank over SWIFT, not as a PDF from the buyer.
How do I check a DLC MT700 is genuine?
Ask your own bank to confirm it received the MT700 over SWIFT from the issuing bank's BIC. A PDF, screenshot or copy sent by the buyer or an intermediary proves nothing.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.