●DLC · SWIFT MT700 · UCP600

Documentary
Letter of Credit.▌

DEALEXUS structures and closes Documentary Letter of Credit deals transmitted via SWIFT MT700. UCP600 rules enforced. Used by commodity traders, importers and exporters closing bulk goods transactions across multiple jurisdictions.

Open DLC Deal » What is a DLC?

Countries using UCP600

0 pay modes

At sight · Deferred · Acceptance · Negotiation

Enforced deal steps

Broker commission protected

IMPORTER / BUYER

Pay only when goods are shipped in compliance.

Issuing bank pays only on compliant document presentation — B/L, COO, inspection cert, invoice all verified.

EXPORTER / SELLER

Guaranteed payment on compliant presentation.

Once the LC is issued and your documents comply, payment is bank-guaranteed regardless of buyer default.

TRADE BROKER

Commission locked before the deal moves.

IMFPA at step 4. Commission locked before the deal moves. 45% on your side. Never circumvented.

●§ 1 · What is a Documentary LC?

The instrument explained.

DOCUMENTARY LETTER OF CREDIT · SWIFT MT700 · UCP600

A Documentary Letter of Credit (DLC) is a payment mechanism issued by a buyer's bank that guarantees payment to a seller, provided that the seller presents the specified documents (bill of lading, certificate of origin, inspection certificate, commercial invoice) in compliance with the LC terms. It is the most widely used instrument in international commodity trade.

Documentary LCs are transmitted between banks via SWIFT MT700 — the SWIFT Category 7 message for the issuance of a documentary credit. Once issued, the advising bank notifies the beneficiary (seller). On compliant document presentation, the issuing bank pays. The governing rules are the Uniform Customs and Practice for Documentary Credits (UCP600), ICC Publication 600, the global standard used by virtually every trade bank in the world.

Commodity traders use Documentary LCs for crude oil, refined products, base metals, agricultural commodities (CPO, grain, sugar), coal, iron ore and precious metals. The LC locks in payment to the seller while protecting the buyer from paying before goods are shipped in conformity.

UCP600

Governing Rules

DEALEXUS-generated MT700 drafts comply with ICC UCP600 (Uniform Customs and Practice for Documentary Credits). The most widely adopted rules in trade finance, used by banks in 175+ countries.

MT700

The Message Format

SWIFT MT700 (Issue of a Documentary Credit) is the exact message format used to issue a DLC from an issuing bank to an advising bank. DEALEXUS builds the MT700 draft on the platform, reviewed before bank submission.

MT710 / MT720

Related Message Types

MT710 (Advice of a Third Bank's or Non-Bank's Documentary Credit) and MT720 (Transfer of Documentary Credit) for transferable LCs. DEALEXUS supports the full SWIFT Cat. 7 Nov. 2025 standard suite.

DOCUMENTS

Compliant Presentation

Bill of lading, certificate of origin, inspection certificate (SGS, CCIC, Bureau Veritas), commercial invoice, packing list — all verified for UCP600 compliance before release to the buyer's bank.

●§ 2 · Document set in a DLC transaction

What gets presented.
Where it goes.

ROUTED CORRECTLY · INSPECTED · VERIFIED

Bill of Lading (B/L)

Title document issued by the shipping carrier. Routed to the buyer's bank only on compliant presentation. Never released early or by email.

Certificate of Origin (COO)

Certifies the country of origin of the goods. Required by customs authorities. Issued by chamber of commerce or approved government body.

Inspection Certificate

Third-party quality and quantity inspection (SGS, CCIC, Bureau Veritas). Confirms goods match the LC description. Required at loading port.

Commercial Invoice

Seller's invoice for the goods, matching the LC terms exactly — currency, amount, description, Incoterms. Discrepancies result in LC refusal.

Packing List

Detailed breakdown of goods by package, weight and marks. Must match the B/L and invoice. Required for customs clearance.

Insurance Certificate

Required under CIF Incoterms. Covers goods from warehouse to final port. Must be issued in the LC currency and endorsed in blank.

●§ 3 · Instrument specifications

DLC MT700 deal parameters.

Instrument type

Documentary Letter of Credit (DLC)

SWIFT message

MT700 — Issue of a Documentary Credit

Governing rules

UCP600 (ICC Publication 600) · URDG758 for demand guarantees

SWIFT category

Category 7 · Documentary Credits and Guarantees · Nov. 2025 Std.

Payment terms

At sight · Deferred payment · Acceptance · Negotiation

LC types

Irrevocable · Confirmed · Transferable · Back-to-back

Commodity coverage

Crude oil · Refined products · CPO · Metals · Minerals · Grains · Soft commodities

Inspection bodies

SGS · CCIC · Bureau Veritas · Intertek · Alex Stewart

Incoterms

FOB · CIF · CFR · EXW — configured per deal in the term sheet

Commission split

45 / 45 / 5 / 5 — sender broker / receiver broker / sender mandate / receiver mandate

Paymaster / escrow

Automated escrow release at CLOSED — MVP2, in development. DEALEXUS currently holds no client funds.

Compliance

FATF · OFAC · EU Sanctions · UN Security Council · BSA · MAS

Commission split — locked at IMFPA (step 4)

SENDER BROKER

Principal A's side

RECEIVER BROKER

Principal B's side

MANDATE A

Appointed by Principal A

MANDATE B

Appointed by Principal B

DocumentaryLetter of Credit.▌