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Cancellation of an LC

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Thu, 07/29/2010 - 07:53
Uncleris
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Joined: 07/29/2010
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Ladies and Gentlemen,

My warm greetings. I need to cancel an LC and do not know what SWIFT message format to use. The beneficiary has agreed to the cancellation, but I've never had to cancel an LC before. Is there a special format to use, or do I consider the cancellation as an amendment and send an MT707? Thanks.

Uncleris

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Tue, 08/03/2010 - 00:40
#1
ntatahi
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Joined: 06/29/2010
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Use MT707

There's no message type for cancellation an L/C. You can use MT707 as amendment to decrease the credit value to the zero. At field 72, note for cancellation (ex : at the applicant's request, pls cancel the L/C).

P.S : You also can use MT799 provided that state clearly cancellation of L/C

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Thu, 07/29/2010 - 08:24
#2
jales
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Joined: 07/21/2010
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MT799

As far as I know, there is no specific MT for cancellation, but just for acceptance (MT730). Then, you can use MT799 free format and by this way you can explain the reason(s) for cancellation.

It should not be passed so long time since you've recieved then said l/c despite there is no a time limit for turn back.

Additionaly, as my recommendation, take a written confirmation from your customer for your file.

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