MT732 — Advice of Discharge
Formal discharge of a previously invoked discrepancy by MT734 — the issuing bank reverses its refusal following: (a) an explicit applicant waiver, (b) a new presentation of conforming documents, or (c) a commercial settlement between parties. Key to the discrepancy resolution workflow under UCP 600 article 16e.
Purpose
MT732 lifts the refusal initially notified by MT734. Three scenarios:
- Applicant waiver: the applicant accepts the discrepant documents — the issuing bank is released from art 16d and proceeds to pay.
- New conforming documents: the beneficiary has presented amended documents that correct the discrepancies.
- Commercial settlement: bilateral agreement between applicant and beneficiary (amount reduction, late shipment accepted).
MT732 is the formal SWIFT communication that closes the discrepancy episode and triggers the MT754/MT202 payment.
Main tags
| Tag | Name | Status |
|---|---|---|
:20: | Sender's Reference | Mandatory |
:21: | Documentary Credit Number | Mandatory |
:32A: | Date and Amount Discharged | Mandatory |
:33B: | Currency, Amount Adjusted (if reduced) | Conditional |
:71D: | Charges | Optional |
:72: | Sender to Receiver Information | Optional |
:77B: | Discharge Information (waiver mention + intent to pay) | Mandatory |
Real-world example
BNP Paribas discharges discrepancies following ACME waiver, USD 500,000 payment at value date D+1:
{1:F01BNPAFRPPAXXX0000000000}{2:I732CITIUS33XXXXN}{3:{108:DISC732-20260519-001}}{4:
:20:DISC732-20260519-001
:21:LC-2026-887
:32A:260519USD500000,00
:72:/REF/CITI NEGOTIATION DATED 20260518
:77B:DISCREPANCIES PREVIOUSLY ADVISED IN OUR MT734 DATED 20260519 HEREBY CONSIDERED DISCHARGED. APPLICANT WAIVER RECEIVED ON 20260519. PROCEEDING TO PAY USD500000,00 VALUE DATE 20260520 ACCORDING TO ORIGINAL LC TERMS. PLEASE ARRANGE FOR DELIVERY OF DOCUMENTS TO APPLICANT.
-}{5:{CHK:445566778899}}Common pitfalls
- :77B: ambiguous: "waiver received" mention and intent to pay must be explicit. Otherwise dispute.
- MT732 without prior MT734: invalid — MT732 can only discharge a formally notified discrepancy.
- Post-waiver delay: SWIFT best practice: MT732 within 2 banking days of waiver receipt. Beyond, the presenter may consider silence as refusal.
- No following MT754: after MT732, MT754 or MT202 must follow quickly for effective settlement.