A pre-open is a brief advice of documentary credit sent by the Issuing Bank to the Advising Bank.
This is to be followed by the LC instrument that contains all the details of the LC. It notifies
the recipient that the named buyer has opened an LC for a specified amount on a named seller (beneficiary).
MT 705 is a special swift message type that is used by issuing banks when issuing a pre-open of a letter of credit.
An issuing bank sends the terms and conditions of the documentary credit briefly with a MT 705 Pre-open of a Documentary Credit swift message type.
The pre-Open is not an operative instrument.
As a result the issuing bank, which has sent the MT 705, must also send a MT 700 Issue of a Documentary Credit to inform the full terms and conditions of the documentary credit.
To Create a Pre-open transaction go to
Import LC >> Main >> Pre-open (LITPOP)