Why Is Field 46A Optional?

A light Q&A with Mr. Old Man on LC quirks

Question

Dear Mr. Old Man,

I would like to draw your attention to Field 46A (Documents Required). I see that this field always contains the description of documents to be presented under the LC. I wonder why the status of this field is O (Optional) and not M (Mandatory).

Please help me clarify it.

Thank you in advance.

Best regards,

TTN

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Answer

Hi,

At first glance, Field 46A — “Documents Required” — looks like something that must always be filled in. I mean, it’s a letter of credit, right? Surely there must be some documents to require!

But LC life is not always that straightforward.

There are perfectly legitimate cases where an LC is issued as a clean letter of credit. This type of LC does not require any document other than a simple written demand for payment — usually a draft.

No invoice, no bill of lading, no packing list… nothing for Field 46A to proudly list.

And that is exactly why SWIFT classifies Field 46A as O (Optional).

If the LC is clean, the field has nothing to say — and being optional saves everyone from inventing documents just to fill the space.

So the rule of thumb is simple:

• If the LC requires documents → Field 46A goes to work.
• If it’s a clean LC → Field 46A takes the day off.

Kind regards,

Mr. Old Man