MT705 — Pre-Advice of Documentary Credit
Pre-notification of a documentary credit before its formal MT700 issuance. Lets the advising bank and beneficiary prepare logistically (production, transport, forwarder negotiation) before the issuing bank's irrevocable commitment. Strictly informative, no UCP 600 commitment value.
Purpose
MT705 is informative, not committal. It is the SWIFT equivalent of "heads up": the issuing bank signals that an LC will be issued within a few days, providing the essential parameters (amount, beneficiary, goods, Incoterms, expected shipping date). Reduces lead times between commercial contract signing and shipment. The formal MT700 should follow within 7 banking days (standard :79: clause).
Main tags
| Tag | Name | Status |
|---|---|---|
:27: | Sequence of Total | Mandatory |
:40A: | Form of Documentary Credit (IRREVOCABLE) | Mandatory |
:20: | Documentary Credit Number (pre-LC reference) | Mandatory |
:31D: | Date and Place of Expiry | Mandatory |
:51A: | Applicant Bank (issuing bank) | Optional |
:50: | Applicant | Mandatory |
:59: | Beneficiary | Mandatory |
:32B: | Currency Code, Amount | Mandatory |
:39A: | Percentage Credit Amount Tolerance | Optional |
:44A/B/C: | Place of Loading / Discharge / Latest Date of Shipment | Optional |
:45A: | Description of Goods (summary) | Optional |
:79: | Narrative ("full LC follows" clause) | Mandatory |
Real-world example
Pre-advice LC USD 500,000 issued by BNP Paribas to Citi NY for ACME Export to Global Trading:
{1:F01BNPAFRPPAXXX0000000000}{2:I705CITIUS33XXXXN}{3:{108:LC705-20260519-001}}{4:
:27:1/1
:40A:IRREVOCABLE
:20:PRE-LC-2026-887
:31D:260730/FR
:51A:BNPAFRPPXXX
:50:ACME EXPORT SARL
8 QUAI DE LA RAPEE
75012 PARIS FRANCE
:59:GLOBAL TRADING INC
500 5TH AVE
NEW YORK NY 10110 USA
:32B:USD500000,00
:39A:10/10
:41A:CITIUS33XXX
BY NEGOTIATION
:44A:FOB MARSEILLE
:44B:CFR NEW YORK
:44C:260720
:45A:ELECTRONICS COMPONENTS 50 X CONTAINER 40HC
:79:FULL LC FOLLOWS BY MT700 WITHIN 7 BANKING DAYS / PRE-ADVICE TO ENABLE LOGISTICS PREP
-}{5:{CHK:1234567890AB}}Common pitfalls
- Confusion with MT700: MT705 does not commit the issuing bank. The beneficiary should not ship goods based on MT705 alone.
- :79: empty or ambiguous: the "full LC follows" clause with explicit deadline is expected. Without it, the pre-advice status is legally ambiguous.
- MT700 not issued within 7 days: some advising banks require an MT799 (free format) to extend or cancel the pre-advice.
- Changes between MT705 and MT700: if parameters change (amount, expiry, beneficiary), an explanatory MT799 is best practice before MT700 issuance.
Related messages (LC workflow category 7)
- MT700 — Issue of a Documentary Credit (formal issuance).
- MT707 — Amendment to a Documentary Credit.
- MT710 — Advice of Third Bank's or Non-Bank's Documentary Credit.
- MT720 — Transfer of a Documentary Credit.
- MT740 — Authorisation to Reimburse.
- MT750 — Advice of Discrepancy.
- MT754 — Advice of Payment/Acceptance/Negotiation.