title: "MT700 Field 49: Relationship with UCP 600 Articles"
topic_family: ucp
status: approved
batch: 5
date: 2026-07-15

MT700 Field 49: Relationship with UCP 600 Articles

Introduction

The MT700 SWIFT message is the standard vehicle for issuing and amending documentary credits in international trade. Field 49 (Confirmation Instructions) specifies whether the credit is to be confirmed, advised without confirmation, or may be advised without confirmation. This field directly determines the allocation of payment risk between the issuing bank, the confirming bank, and the beneficiary. Understanding how Field 49 interacts with UCP 600 provisions is essential for trade finance practitioners who need to structure credits that provide appropriate payment security while complying with the rules.

Failure Modes

1. Mismatch Between Field 49 and Actual Confirmation Practice: If Field 49 states "CONFIRM" but the nominated bank does not add its confirmation, the credit's confirmation status is ambiguous. The beneficiary may believe the credit is confirmed when it is not, creating a false sense of payment security.

2. Field 49 Set to "MAY ADD" Without Clarification: When Field 49 specifies "MAY ADD," the nominated bank has discretion to confirm or not confirm the credit. If the beneficiary assumes confirmation will be added and it is not, the beneficiary bears the issuing bank's risk without having agreed to it.

3. Confirmation Requested After Issuance Without Credit Amendment: Some beneficiaries request confirmation after the credit is issued, without an amendment to Field 49. A confirmation added without a formal amendment may not be recognized under UCP 600, leaving the confirming bank's obligation uncertain.

4. Issuing Bank Refuses to Pay the Confirming Bank: When a confirming bank honors a complying presentation and seeks reimbursement from the issuing bank, the issuing bank may refuse to reimburse, claiming discrepancies that the confirming bank did not identify. This dispute falls outside UCP 600's scope and requires resolution through other mechanisms.

5. Field 49 Contains a Value Not Recognized by UCP 600: SWIFT allows certain values in Field 49 that do not map directly to UCP 600 provisions. If Field 49 contains a non-standard value, the credit's confirmation status may be unclear to all parties.

Resolution Steps

1. Match Field 49 to the Transaction's Risk Requirements: Before setting Field 49, assess the payment risk in the transaction. If the beneficiary requires assurance beyond the issuing bank's undertaking (e.g., due to country risk or issuing bank creditworthiness), Field 49 should specify "CONFIRM."

2. Confirm the Nominated Bank's Willingness to Confirm: If Field 49 is set to "CONFIRM," verify with the nominated bank that it is willing and able to add its confirmation. This verification should occur before the credit is issued to avoid post-issuance complications.

3. Avoid Ambiguity with "MAY ADD": When Field 49 specifies "MAY ADD," communicate clearly with the beneficiary about whether confirmation is expected. If confirmation is required, it is safer to use "CONFIRM" to eliminate ambiguity.

4. Process Confirmation Through Formal Amendment: If confirmation is added after issuance, ensure that Field 49 is formally amended to reflect the change. This amendment should be transmitted via SWIFT and acknowledged by all parties.

5. Understand the Confirming Bank's Reimbursement Rights: Under UCP 600 Article 8, the confirming bank is entitled to reimbursement from the issuing bank upon a complying presentation. However, disputes may arise about whether the presentation was indeed complying. Establish clear communication channels between the confirming and issuing banks to resolve disputes promptly.

6. Review Field 49 During Credit Examination: When receiving an MT700, the advising or confirming bank should immediately review Field 49 to determine its obligations. A Field 49 value of "CONFIRM" triggers the confirmation process; "WITHOUT" means the bank advises without confirmation; "MAY ADD" requires a decision.

7. Document Confirmation Status in the Credit Terms: Beyond Field 49, ensure that the credit's narrative terms explicitly state the confirmation requirement. This redundancy provides clarity if there is any question about the SWIFT field's content.

Conclusion

MT700 Field 49 is a small but powerful field that determines the payment risk structure of a documentary credit. Its value—CONFIRM, MAY ADD, or WITHOUT—directly engages specific UCP 600 articles that define the obligations of issuing, confirming, and advising banks. Misunderstanding or mismanaging Field 49 can lead to false assumptions about payment security, disputes between banks, and losses for trade parties. By aligning Field 49 with the transaction's risk requirements, verifying bank willingness to confirm, and maintaining clear communication across all parties, practitioners can ensure that the credit's confirmation structure serves its intended purpose.

Frequently Asked Questions

Q1: What are the valid values for MT700 Field 49?
Field 49 accepts three values: "CONFIRM" (the credit must be confirmed), "MAY ADD" (the credit may be confirmed at the nominated bank's discretion), and "WITHOUT" (the credit must not be confirmed).

Q2: Does a confirming bank have an obligation to reimburse the beneficiary?
Yes. Under UCP 600 Article 8, a confirming bank that adds its confirmation undertakes to honor or negotiate a complying presentation. This obligation is independent of the issuing bank's ability to pay.

Q3: Can a credit be confirmed without Field 49 specifying "CONFIRM"?
No. Confirmation requires an explicit instruction. Field 49 must specify "CONFIRM" (or the credit must be amended to include this instruction) for a bank to add its confirmation.

Q4: What happens if the issuing bank refuses to reimburse the confirming bank?
UCP 600 Article 8 entitles the confirming bank to reimbursement upon a complying presentation. If the issuing bank refuses, the dispute must be resolved through the mechanisms specified in the credit or the underlying contract—often ICC arbitration.

Q5: Is "MAY ADD" the same as "WITHOUT"?
No. "MAY ADD" gives the nominated bank discretion to confirm the credit. "WITHOUT" prohibits confirmation. The difference is significant: under "MAY ADD," the nominated bank may choose to confirm, while under "WITHOUT," it cannot.

Source Notes

The following sources were referenced during research for this guide. They provide context and background; no text has been reproduced from these sources.

1. eUCP VERSION 2.1 — ICC Uniform Customs and Practice for Documentary Credits — ICC. Primary eUCP publication covering electronic presentation rules. Published June 2023.
2. eUCP VERSION 2.1 - ICC Uniform Customs and Practice for Documentary Credits — ICC. Reference publication for eUCP Version 2.1. Published June 2023.