SWIFT/UCP 600 Implementation

Partner Meeting – La Hulpe 

March 2007 Page 1 

ICC Singapore, April 2007 

Key Dates 

25 October 2006 - UCP 600 Approved 

SWIFT/UCP 600 

Implementation 

18 November 2006 - Standards Release 2006 

1 July 2007 - UCP 600 Guidelines 

27 October 2007 - Standards Release 2007 

James Wills 

Business Manager 

Standards 

Slide 1 

UCP600_SWIFT Integration_2007 

Slide 2 

2006/2007 SWIFT Release/UCP 600 Implementation 

Implementation approach: 

Standards 

Release 

2006 ‘live’ 

Ph I 

18 Nov 06 Early 2007 1 Jul 07 27 Oct 07 

Ph II 

First 

set of 

changes 

‘live’ 

Guidelines 

communicated 

via various 

channels 


UCP 600 

‘live’ 

Guidelines 

can be 

applied in 

SWIFT 

messages 

Standards 

Release 

2007 ‘live’ 

Guidelines 

published 

in SWIFT 

handbook 

Slide 3 

SWIFT/UCP 600 Implementation 

SWIFT UCP 600 Guidelines: 

Drafting Group consulted 

SWIFT Trade Finance WG recommendations 

SWIFT National User Groups and Board approved 

Cater for UCP600 using today's Cat 7 messages 

Allow SWIFT to go live when UCP 600 goes live 

Minimal impact, minimal cost 

Flexible migration path 

Communication via various channels 


Slide 4 

2006 SWIFT Release/UCP 600 Implementation 

2006 SWIFT Release/UCP 600 Implementation 

Applicable Rules 

Alignment with UCP 600, article 1 Application of UCP 

Prior SWIFT “Default rule” accommodated UCP 500, art. 

1 “incorporated into the text”. 

New Mandatory field 40E with codes to indicate 

adherence to specific rules accommodates UCP 600, 

art. 1 “when the text of the credit expressly indicates that 

it is subject to these rules”. 

Applicable Rules 

MT 700, 710 720 

FIELD 

40E (Mandatory) 

FORMAT Code (+ Narrative) 

CODES UCP LATEST VERSION 

EUCP LATEST VERSION 

UCPURR LATEST VERSION 

EUCPURR LATEST VERSION 

ISP LATEST VERSION 

OTHR 

NETWORK VALIDATED RULES 

Narrative can only be used when code = OTHR 

Example :40E:OTHR UCP500 


Slide 5 


Slide 6 

www.swift.com © S.W.I.F.T. SCRL 2007



2006 SWIFT Release 

2006 SWIFT Release 

Transportation details: 

Transportation Details: 

Alignment with UCP 600, transportation document details 

New optional fields (65 characters): 

– 44A Place of Taking in Charge/Dispatch from…/Place of Receipt 

– 44E Port of Loading/Airport of Departure 

– 44F Port of discharge/Airport of Destination 

– 44B Place of Final Destination/For Transportation to…/Place of 

Delivery 

Field 44A 

Place of Taking 

in Charge/ 

Dispatch from…/ 

Place of Receipt 

Road 

Rail 

Field 44E 

Port of Loading/ 

Airport of 

Departure 

Road 

Rail 

Field 44F 

Port of 

Discharge/ 

Airport of 

Destination 

Road 

Rail 

Field 44B 

Place of Final 

Destination/For 

Transportation to.../ 

Place of Delivery 

Inland 

waterway 

Sea/ 

Ocean 

Inland 

waterway 

Air 


Slide 7 


Slide 8 


Changes that financial institutions can use from 1 July 2007 

Date and place for presentation of documents under a 

credit: 

Alignment with UCP 600, article 6 Availability, Expiry 

Date and Place for Presentation 

– Art 6 d.i “A credit must state an expiry date for 

presentation…” 

– Art 6 d.ii “The place of the bank with which the credit 

is available is the place for presentation…” 

Change the definition of field 31D Date and Place of 

Expiry 

Change the definition of field 41a Available With... By... 

to mention availability and place of presentation. 

SWIFT/UCP 600 Implementation (Usage Guidelines) 

1. Date and place for presentation of documents under a credit 

a) Field 31D “Date and Place of Expiry” of the MT 700, 705, 710, 

720 and 740 

The definition of this field should be interpreted as follows: “This 

field specifies the latest date for presentation under the 

documentary credit and the place where documents may be 

presented.” This guideline does not change the usage of this field. 

b) Field 41a “Available With... By...” of the MT 700, 705, 710 and 720 

The definition of this field should be interpreted as follows: “This 

field identifies the bank with which the documentary credit is 

available (the place for presentation) and an indication of how the 

credit is available.” This guideline does not change the usage of 

this field. 


Slide 9 


Slide 10 

Usage Example - Fields 41a & 31D 


If ... 

the credit is available with ... 

The issuing bank (and documents 

MAY NOT be presented at another 

bank) 

A nominated bank 

Any bank [in ...] 

Then ... 

field 41a Available With ... 

By ... [1] contains 

BIC or name and address of the 

Issuing bank 

BIC or name and address of 

the nominated bank 

Words “Any bank [in ...]” 

And ... 

subfield ‘Place’ of field 31D 

Date And Place Of Expiry [2] 

contains 

Place/country of the issuing bank 

Place/country of the nominated 

bank 

Place/country of the beneficiary 

Bank-to-Bank Reimbursement Arrangements 

UCP 600 Art 13 b.i. “If a credit does not state that reimbursement is 

subject to ICC rules…the Reimbursement Authorization should not be 

subject to an expiry date” 

URR 525 art 7 “Except to the extent expressly agreed to by the 

Reimbursing Bank, the Reimbursement Authorization must not have an 

expiry date….” 

Implementation 1 July 2007 

[1] Field 41a Available With ... By ... is mandatory in the MTs 700, 710, 720 & 740; it is optional in the MT 705 

[2] Field 31D Data And Place Of Expiry is mandatory (in LC) in the MTs 700, 705, 710 & 720; it is optional in 

the MT 740 (in Reimbursement Authority) 

[ ] Optional 


Slide 11 


Slide 12 






2. Expiry dates in reimbursement authorizations (or 

amendments thereof) 

a) Field 31D “Date and Place of Expiry” of the MT 740 

The following usage rule should be added: “This field should not be 

used to specify the latest date for presentation of a reimbursement 

claim or an expiry date for the reimbursement authorization.” 

b) Field 72 “Sender to Receiver Information” of the MT 740 

The following usage rule should be added: “Any latest date for a 

reimbursement claim or an expiry date for the reimbursement 

authorization should be indicated in this field and not in field 31D.” 

2. Expiry dates in reimbursement authorizations (or 

amendments thereof) (cont’d) 

c) Field 31E “New Date of Expiry” of the MT 747 

The following usage rule should be added: “This field should not be 

used to specify a new latest date for presentation of a 

reimbursement claim or a new expiry date for the reimbursement 

authorization.” 

d) Field 72 “Sender to Receiver Information” of the MT 747 

The following usage rule should be added: “Any new latest date for 

a reimbursement claim or a new expiry date for the reimbursement 

authorization should be indicated in this field and not in field 31E.” 


Slide 13 


Slide 14 



Disposal of documents in a notice of refusal 

UCP 600 offers 4 specific options for disposal of 

documents: 

1. 16.c.iii(a) holding pending further instructions 

2. 16.c.iii(b) holding until waiver received 

3. 16.c.iii(c) returning the documents 

4. 16.c.iii(d) acting in accordance with previously 

received instructions 

Disposal of documents in a notice of refusal: 

Alignment with UCP 600, article 16 Discrepant 

Documents, Waiver and Notice 

Today, field 77B Disposal of Documents in the MT 734 

Notice of Refusal only accommodates codes HOLD (1 

above) and RETURN (3 above) 

Any details regarding the disposal of documents for 

which the existing two code words cannot be used, must 

be described by means of narrative text or new code 

words. 

Implementation: 1 July 2007 


Slide 15 


Slide 16 


Disposal of documents in a notice of refusal: 

MT 734 

FIELD 77B Disposal of Documents (Mandatory) 

CODES HOLD Documents held at your disposal 

RETURN Documents being returned to you 

SR 2007 introduces two new codes: 

NOTIFY Documents held until waiver 

received (option2 above) 

PREVINST Documents held in accordance with 

previous instructions (option 4 above). 

These codes may be used after 1 July 2007 to notify disposal status under 

UCP 600 credits. They should not be used to notify disposal status under 

UCP 500 credits. 


3. Details about the disposal of documents in a notice of 

refusal 

Any details regarding the disposal of documents for which the two 

existing code words “HOLD” and “RETURN” in field 77B “Disposal 

of Documents” of the MT 734 Notice of Refusal cannot be used, 

must reflect the content of article 16.c of UCP 600 as follows: 

a) The code word “NOTIFY”, to signify that “The issuing bank is holding the 

documents until it 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.” 

b) The code word “PREVINST”, to signify that “The bank is acting in 

accordance with instructions previously received from the presenter.” 


Slide 17 


Slide 18 





3. Details about the disposal of documents in a notice of 

refusal (cont’d) 

Because the contents (including code words) of field 77B “Disposal 

of Documents” of the MT 734 are not centrally validated (i.e., 

checked) by SWIFTNet, users may start using the above codes as 

of 1 July 2007 (live date of UCP 600). Alternatively, field 77B may 

contain a narrative text, reflecting the content of article 16.c of UCP 

600. 

Please refer to the usage guidelines section of field 77B of the MT 

734 for further details. 

Standards Release 2008 (tentative) 

1 June 2007 Deadline for Change Requests 

16 July 2007 High-Level Information 

21 Dec 2007 Standards Release Guide 

22 Feb 2008 Errata SRG (if needed) 

19 April 2008 Vendor Test System 

13 July 2008 Test & Training System 

19 Sep 2008 UHB Shipment 

15 Nov 2008 Standards Release 2008 ‘Live’ 


Slide 19 


Slide 20 


SR2008 

Will address any structural changes between UCP 600 

and SWIFT MTs 

Dates for SR2008 (Nov 2008) may not allow for real 

experience with UCP 600 and SWIFT 

Banks are encouraged to send comments and proposed 

changes to their SWIFT UGC’s (User Group Chairs) 


Slide 21

SWIFT/UCP 600 Implementation

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