When you first come into contact with a letter of credit, you will often be confused by the dense English clauses. In fact, there is a trick. At present, letters of credit are transmitted between banks in a format called SWIFT messages. This message is numbered according to the nature of each clause content and written in a specific format: clause attribute number + clause attribute + clause content. For example: 44CLATEST DATE OF SHIPMENT 15SEP2005
That is: 44C Final shipment date September 15, 2005
Let’s take a look at a common format of a letter of credit:
Through the clause number on the left side of the letter of credit page, you can quickly identify and query the content of the clause. For example, if you see a clause numbered 71B, you know that it explains the division of bank handling fees; and if you want to check the final delivery and shipment date stipulated in the letter of credit, just check clause 44C directly.
Identifying by clause number is a good way for beginners to review letters of credit.