MT734 — Advice of Refusal
Formal refusal to honor or negotiate documents presented under an MT700 due to discrepancies. Strictly framed by UCP 600 article 16: refusal notice within 5 banking days, exhaustive listing of discrepancies, document holding status.
Purpose
MT734 informs the presenter (negotiating bank or beneficiary) that the documents presented contain discrepancies and that the issuing/nominated bank refuses to pay. The message must indicate (1) all discrepancies in a single notice (no fragmented notice), (2) the holding status: "held at your disposal" (possible return) or "awaiting your instructions".
UCP 600 article 16 — strict rules
Article 16 UCP 600 is the legal pillar of MT734. Three non-negotiable rules:
- Single notice rule: all discrepancies in one MT734 — if the bank issues a later MT734 with new discrepancies, article 16 bars it from invoking them.
- 5 banking days: MT734 must depart no later than 5 banking days after document receipt (UCP 600 art 14b).
- Document status: "held at your disposal" / "held until further instructions" / "returning" / "acting in accordance with your prior instructions".
Main tags
| Tag | Name | Status |
|---|---|---|
:20: | Sender's Reference | Mandatory |
:21: | Documentary Credit Number | Mandatory |
:32A: | Date and Amount Refused | Mandatory |
:73: | Charges Claimed | Optional |
:33B: | Currency Code, Amount Refused | Conditional |
:57a: | Account With Bank | Optional |
:72: | Sender to Receiver Information | Optional |
:77J: | Discrepancies (TEXT, exhaustive listing) | Mandatory |
Real-world example
BNP Paribas refuses documents presented by Citi NY for ACME's LC: 4 discrepancies invoked, fee USD 250:
{1:F01BNPAFRPPAXXX0000000000}{2:I734CITIUS33XXXXN}{3:{108:REF734-20260519-001}}{4:
:20:REF734-20260519-001
:21:LC-2026-887
:32A:260520USD500000,00
:73:OUR USD250,00 EXAMINATION FEE
:77J:DOCUMENTS PRESENTED ON 20260518 CONTAIN THE FOLLOWING DISCREPANCIES:
1. LATE SHIPMENT: BILL OF LADING DATED 20260722 BEYOND LATEST SHIPMENT DATE 20260720.
2. INSURANCE CERTIFICATE AMOUNT USD480000 BELOW REQUIRED 110 PERCENT OF INVOICE VALUE.
3. PACKING LIST NOT SIGNED BY BENEFICIARY.
4. CERTIFICATE OF ORIGIN MISSING ATTESTATION BY CHAMBER OF COMMERCE.
WE HOLD DOCUMENTS AT YOUR DISPOSAL AS NEGOTIATING BANK
PLEASE INSTRUCT WITHIN 5 BANKING DAYS PER UCP 600 ART 16C
-}{5:{CHK:5566778899EE}}Common pitfalls
- :77J: not exhaustive: a forgotten discrepancy can no longer be invoked later (UCP 600 art 16d).
- 5-day deadline exceeded: the bank is deemed to have accepted the documents — obligation to pay.
- Document status omitted: if art 16c.iii is not expressed, the bank may be forced to return docs at presenter's expense.
- Confusion MT734 vs MT750: MT750 (Advice of Discrepancy) is sent by nominated bank to issuing bank before final decision; MT734 is the final refusal decision.