FIELD 34B – NEW DOCUMENTARY CREDIT AMOUNT AFTER AMENDMENT

Hoi An Ancient City, Vietnam

QUESTION

Dear the excellent expert!

Please guide us for the question relating to MT707- the field 34b contains the currency code and total amount of the documentary credit after the amendment, disregarding any drawings. Which should we understand ‘disregarding any drawings’? Whether does it exclude paid drawing (at sight) and accepted drawing (usance)? Could you kindly give us the example for our understanding
Thanks so much. Hope to receive your feedback soon.

Trang

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ANSWER

Hi Trang,

According to SWIFT, field 34B is called “New Documentary Credit Amount after Amendment” which contains the currency code and total amount of the documentary credit after the amendment, DISREGARDING ANY DRAWINGS.

The following example may clarify the usage of field 34B:

# On 30 July, 2016 Bank I issued a Documentary Credit for USD 31,500 with partial shipments/drawings allowed

So, field 32B (Currency and Amount) of MT700 will show USD31500

# On 15 August, 2016 Bank I honoured a presentation for USD 10,000

# On 30 August, 2016 Bank I issued an amendment to increase the Documentary Credit amount by USD 3,250

So field 32B (Currency and Amount) of MT707 will show USD3250 and field 34B (Currency and Amount) of MT707 will show USD34750 (i.e., USD 31,500 + USD 3,250) disregarding USD 10,000 paid on 15 August, 2016.

DISREGARDING ANY DRAWINGS in this case means the new documentary credit amount does not exclude the amount of any drawings paid.

Hope the issue is clarified.

Kind regards,

Mr. Old Man