“Optional” but Essential? Understanding Fields 45A and 46A in MT700

In SWIFT MT700, Fields 45A (Description of Goods and/or Services) and 46A (Documents Required) are classified as optional.

For many practitioners, this raises an immediate question:

If these two fields define what is being sold and what documents must be presented, how can they possibly be optional?

A recent question from a colleague highlights this apparent contradiction.

Question

Hi,

A quick question… Fields 45A and 46A in SWIFT MT700 are “optional.”
Aren’t these two the most essential items in an LC? Why does SWIFT consider them optional?

Regards,

R.

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Answer

Dear R.,

Yes, under the SWIFT Message Reference Guide, fields 45A (Description of Goods and/or Services) and 46A (Documents Required) in MT700 are classified as optional.

From a technical SWIFT perspective, “optional” simply means that the message can be transmitted without these fields. It does not mean that they are commercially unimportant.

In a typical commercial documentary credit, both fields are practically indispensable:

• Field 45A defines the underlying transaction (goods/services).
• Field 46A defines the documentary compliance framework against which presentation will be examined.

However, SWIFT standards must accommodate not only commercial LCs but also standby LCs issued via MT700.

In the case of a standby LC:

• Field 45A is often left blank because the undertaking is not performance-based on shipment of goods.
• Field 46A may also be omitted where the standby operates on a simple demand mechanism rather than a documentary performance structure.

In such cases, the payment undertaking and demand wording are typically stated in Field 47A (Additional Conditions), and the availability is indicated in Field 41A/41D.

Therefore, SWIFT classifies these fields as “optional” because MT700 must be flexible enough to accommodate different types of undertakings — not because these fields lack importance in a commercial LC.

Kind regards.

Mr. Old Man