EDIFACT message guide · Finance

DOCAPP Documentary credit application

The UN/EDIFACT message a party uses to request the issue of a documentary credit (letter of credit) and state its conditions.

Sent by
Applicant (usually the importer) or its bank
Received by
Issuing bank
Standard
UN/EDIFACT · Batch message
X12 equivalent
No direct equivalent

What is the EDIFACT DOCAPP message?

DOCAPP is the UN/EDIFACT documentary credit application. The directory defines it as a message from a party requesting the issuance of a documentary credit to the party providing that service, stating the conditions under which the documentary credit should be issued.

A documentary credit, or letter of credit, is a bank's undertaking to pay the exporter when it presents documents that comply with the credit's terms. The application states the beneficiary, amount, expiry, shipment details and the documents required, such as the bill of lading, invoice and insurance certificate.

How the EDIFACT DOCAPP message worksDiagram of the UN/EDIFACT DOCAPP Documentary credit application message. Applicant (usually the importer) or its bank sends it to issuing bank. It usually starts the exchange. It is usually followed by DOCINF and DOCADV. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message), INP (Parties and instruction) and FCA (Financial charges allocation) and body and segment groups: the required SG1 loop with FII (Financial institution information), the required SG2 loop with NAD (Name and address), the required SG3 loop with DTM (Date/time/period), the required SG4 loop with MOA (Monetary amount), the required SG7 loop with PAI (Payment instructions), the required SG8 loop with PYT (Payment terms), the required SG13 loop with RFF (Reference) and the required SG14 loop with DOC (Document/message details). 9 conditional segment groups are listed by their trigger segment.How the EDIFACT DOCAPP message worksDocumentary credit application: who sends it, where it fits and what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeDOCAPPSENDERApplicant (usually theimporter) or its bankRECEIVERIssuing bankCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYDOCINFDocumentary creditissuance informationDOCADVDocumentary creditadvice2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDsUNB … UNZMessage DOCAPPUNH … UNTSTART OF MESSAGEBGMBeginning of messageINPParties and instructionFCAFinancial charges allocationBODY AND SEGMENT GROUPSMandatory group SG1 · repeats up to 5FIIFinancial institution informationMandatory group SG2 · repeats up to 9NADName and addressMandatory group SG3 · repeats up to 1DTMDate/time/periodMandatory group SG4 · repeats up to 5MOAMonetary amount+ required SG7 (PAI), SG8 (PYT), SG13 (RFF), SG14 (DOC) and 9conditional groups, starting with:ALCLOCTODTSRINPGEIICDALIAUTBlue box: mandatory segment group. Conditional groups are listed by the trigger segment that starts them; a group is sent only when its data applies.Conditional segments outside groups are not drawn.Structure: mandatory segments and groups in the UN/EDIFACT directory D.21A listing for DOCAPP. Your trading partner's implementation guide adds itsown requirements.
How the EDIFACT DOCAPP message worksDiagram of the UN/EDIFACT DOCAPP Documentary credit application message. Applicant (usually the importer) or its bank sends it to issuing bank. It usually starts the exchange. It is usually followed by DOCINF and DOCADV. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message), INP (Parties and instruction) and FCA (Financial charges allocation) and body and segment groups: the required SG1 loop with FII (Financial institution information), the required SG2 loop with NAD (Name and address), the required SG3 loop with DTM (Date/time/period), the required SG4 loop with MOA (Monetary amount), the required SG7 loop with PAI (Payment instructions), the required SG8 loop with PYT (Payment terms), the required SG13 loop with RFF (Reference) and the required SG14 loop with DOC (Document/message details). 9 conditional segment groups are listed by their trigger segment.How the EDIFACT DOCAPPmessage worksDocumentary credit application: who sends it,where it fits and what the directory marksmandatory1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeDOCAPPSENDERApplicant(usually theimporter) or itsbankRECEIVERIssuing bankCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYDOCINFDocumentary credit issuanceinformationDOCADVDocumentary credit advice2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDs(UNB … UNZ)Message DOCAPP (UNH … UNT)START OF MESSAGEBGMBeginning of messageINPParties and instructionFCAFinancial charges allocationBODY AND SEGMENT GROUPSMandatory group SG1 · repeats upto 5FIIFinancial institutioninformationMandatory group SG2 · repeats upto 9NADName and addressMandatory group SG3 · repeats upto 1DTMDate/time/period+ required SG4 (MOA), SG7 (PAI), SG8(PYT), SG13 (RFF), SG14 (DOC) and 9conditional groups, starting with:ALCLOCTODTSRINPGEIICDALIAUTBlue box: mandatory segment group. Conditionalgroups are listed by the trigger segment thatstarts them; a group is sent only when its dataapplies. Conditional segments outside groups arenot drawn.Structure: mandatory segments and groups in theUN/EDIFACT directory D.21A listing for DOCAPP.Your trading partner's implementation guide adds itsown requirements.

How to read this diagram: the top row shows who sends DOCAPP, to whom, and which messages usually come before and after it. The lower part shows what the directory D.21A itself requires: the envelopes around DOCAPP and the segments and segment groups it marks mandatory. Conditional groups are listed by their trigger segment rather than drawn in full. This is the directory's minimum, not a trading partner's requirement: a message implementation guide, such as an industry subset or a partner’s own guide, usually makes some conditional groups mandatory, restricts the codes and may use an older directory.

Expand diagram Download SVG

When it is used

  • Applying for an import letter of credit
  • Specifying required documents and shipment terms
  • Requesting standby or revolving credits

Where it fits in the message flow

This message DOCAPP Documentary credit application

Structure

Mandatory segments in DOCAPP (directory D.21A)

In UN/EDIFACT directory D.21A, the DOCAPP message has 62 segment positions arranged in 18 segment groups. These are the segments and segment groups marked mandatory at message level, in order; a mandatory group is shown with the segment that starts it. Segments inside conditional groups are needed only when the group is used. This is the directory’s requirement, not your trading partner’s: each partner’s message implementation guide names the directory it uses, often an older one such as D.96A or D.01B where the structure can differ, makes some conditional segments mandatory and restricts the codes.

  • UNH
  • BGM
  • INP
  • FCA
  • SG1 (FII)
  • SG2 (NAD)
  • SG3 (DTM)
  • SG4 (MOA)
  • SG7 (PAI)
  • SG8 (PYT)
  • SG13 (RFF)
  • SG14 (DOC)
  • UNT

Practical example

DOCAPP in practice

A machinery importer in Kenya buys equipment from a German exporter on letter of credit terms. Its trade finance system sends its bank a DOCAPP with the exporter as beneficiary, the amount, the latest shipment date, the port of loading and discharge and the documents required. The bank issues the credit and confirms the terms to the importer with a DOCINF.

Implementation

Implementation considerations for DOCAPP

  • Specify documents and terms precisely; ambiguity leads to discrepancies.
  • Align terms with the commercial contract and shipping plans.
  • Follow the bank's subset and the applicable ICC rules.
  • Track the application through issue and advice.

Need help with DOCAPP?

ECOM maps, tests and monitors EDIFACT messages for your trading partners and integrates them with your ERP.