MT 705 Explained: Pre-Advice of a Documentary Credit

MT 705 is a brief "credit is coming" notice an issuing bank sends ahead of the full MT 700, when the complete terms aren't ready yet but the beneficiary or advising bank needs early notice — for example, so the exporter can start preparing goods for shipment before every last condition is finalised.

Key fields

• 27 — Sequence of Total: Same role as in MT 700.
• 20 — Documentary Credit Number: The number the full credit will carry once issued.
• 31C — Date of Issue: When the credit takes effect.
• 31D — Date and Place of Expiry: A tentative expiry, which may still be confirmed or adjusted in the full MT 700.
• 50 / 59 — Applicant / Beneficiary: The core parties, so the beneficiary knows who to expect the credit from and who it's for.
• 32B — Currency/Amount: The credit's expected value.
• 78 — Instructions: Usually states plainly that full details will follow by a subsequent MT 700.

A pre-advice is explicitly not operative — under UCP 600, a beneficiary cannot present documents against an MT 705 alone. It's a courtesy notice, not a bankable credit, until the full MT 700 arrives.