Contents
1. Preface
1.1 Introduction
1.2 Audience
1.3 Documentation Accessibility
1.4 Organization
1.5 Glossary of Icons
1.6 Related Documents
2. Letters of Credit - An Overview
2.1 Features
2.2 Operations supported on LC
2.3 Processing Commissions and Charges
2.4 Variations Supported for an LC
2.4.1 Red Clause Letter of Credit
2.4.2 Transferable and Non-transferable LCs
2.4.3 Revolving and Non revolving LCs
2.4.4 Sight and Usance LC
2.4.5 Cash Collateral against an LC
2.4.6 Availment against an LC
2.4.7 Reports
3. Maintenance
3.1 Document Details
3.1.1 Maintaining Document Details
3.1.2 Specifying UDF Values
3.1.3 Operations on Document Maintenance Record
3.2 Clause Details
3.2.1 Maintaining Clause Details
3.2.2 Specifying UDF Values
3.2.3 Operations on a Clause Maintenance Record
3.3 Goods Details
3.3.1 Maintaining Goods Details
3.3.2 Specifying UDF Values
3.3.3 Operations on Goods Maintenance Record
3.4 Import License Details
3.4.1 Maintaining Import License
3.4.2 Viewing Import License Maintenance Details
3.4.3 Operations on Import License Utilization
3.5 Free Format Text Codes Details
3.5.1 Maintaining Free Format Text Codes
3.5.2 Specifying UDF Values
3.5.3 Operations on FFT Maintenance Record
3.6 Insurance Company Details
3.6.1 Maintaining Insurance Company Details
3.6.2 Specifying Company Details
3.6.3 Specifying Account Details
3.6.4 Specifying UDF Values
3.6.5 Operations on Company Maintenance Record
3.7 Trade License Details
3.7.1 Maintaining Trade License Details
3.7.2 Operations on Licence Expiry Date Record
3.7.3 Viewing Trade License Details
3.8 Exchange Rates for Bills Details
3.8.1 Maintaining Exchange Rates for Bills
3.8.2 Specifying Exchange Rate Maintenance
3.8.3 Specifying UDF Values
3.8.4 Operations on Exchange Rate Type Maintenance Record
3.9 INCO Terms Details
3.9.1 Maintaining INCO Terms
3.9.2 Specifying INCO Term Document Details
3.9.3 Specifying Document Details
3.9.4
Operations on INCO Term Maintenance Record
3.10 Open Insurance Policy Details
3.10.1 Maintaining Open Insurance Policy Details
3.10.2 Specifying Open Policy Details
3.10.3 Operations on an Open Policy Record
3.11 Blacklisting LCs
3.12 Maintaining Branch Parameters for Letter of Credit
4. Defining Product Attributes
4.1 Creating LC Product
4.2 Preferences for a Product
4.2.1 Specifying Preferences for a Product
4.2.2 Specifying Accounting Roles
4.2.3 Specifying Events
4.2.4 Specifying Branch and Currency
4.2.5 Specifying Customer Details
4.2.6 Specifying Commission Details
4.2.7 Specifying Free Format Text
4.2.8 Specifying Tracer Details
4.2.9 Specifying Charge Details
4.2.10 Specifying Tax Details
4.2.11 Specifying MIS Details
4.2.12 Setting Criteria for Status Change
4.2.13 Specifying UDF Details
5. Processing LC Contract
5.1 LC Contract Details
5.1.1 Capturing LC Contract Details
5.1.2 Creating Contract
5.1.3 Uploading LCs
5.2 Contract Details
5.2.1 Specifying Contract Details
5.2.2 Main Tab
5.2.3 Preferences Tab
5.2.4 Parties Tab
5.2.5 Parties Limits Tab
5.2.6 Shipment Tab
5.2.7 Documents Tab
5.2.8 Advices Tab
5.2.9 Tracers Tab
5.3 Viewing OFAC Check Response
5.3.1 Viewing Different Versions of Contract
5.4 Authorizing a Contract
5.5 Viewing LC Contract
5.6 Multilevel Authorization of a Contract
5.7 Cancel LC
5.7.1 Cancelling LC
5.7.2 Procedure for Cancelling LC
5.7.3 Generating Cancellation Advice in SWIFT Format
5.7.4 Cancellation of Shipping Guarantee
5.8 Close LC
5.8.1 Closing an LC
5.8.2 Procedure for Closing an LC
5.9 Reopening LC
5.9.1 Procedure for Reopening LC
5.10 Reassigning a Contract to another User
5.11 Liquidating Components
5.11.1 Authorizing a Contract
5.12 Lodging Guarantee Claim
5.12.1 Lodging Guarantee Claim
5.12.2 Specifying Main Details
5.12.3 Specifying Advise Details
5.13 Viewing Guarantee Claim Details
5.14 Specifying Import License Utilization
5.15 Viewing Import License Utilization Details
5.15.1 Operations on Import License Utilization
6. Capturing Additional Details
6.1 Additional Details
6.2 Draft Details
6.2.1 Capturing Draft Details
6.2.2 Specifying Drawee Details
6.2.3 Specifying Insurance Company Details
6.2.4 Specifying Breakup Details
6.3 Specifying Settlement Instructions
6.4 Event Details
6.4.1 Viewing Event Details
6.4.2 Viewing the Accounting Entries Passed for the LC
6.4.3 Viewing Advices Applicable to Contract
6.5 Capturing MIS Details
6.6 Defining Commission Details
6.7 Defining Charge Details
6.8 Specifying Tax Details
6.9 Maintaining Collateral Details
6.10 Linking Contracts to Deposits and Accounts
6.11 Viewing Amended Details of Contract
6.12 Specifying Transfer Details
6.13 Capturing UDF Values
6.14 Specifying Loan Preferences
6.15 Split Settlement Screen
6.15.1 Split Settlement Screen
6.15.2 Specifying Settlement Split Master
6.15.3 Specifying Settlement Split Details
6.16 Capturing Brokerage Details
6.17 Specifying Document Details
6.18 Viewing all Messages
6.19 Previewing Messages
6.19.1 Viewing Message/Advice
6.19.2 Printing Message/Advices
6.20 Utilizing Import Licenses
7. Making Availment
7.1 Introduction
7.2 Availment Details
7.2.1 Capturing Availment Details
7.2.2 Reversing LC Liability
7.2.3 Viewing Event Details
7.2.4 Specifying Collateral Details
7.2.5 Maintaining Settlement Instructions
7.2.6 Viewing Advice Details
7.2.7 Specifying Charge Details
7.2.8 Specifying Commission Details
7.2.9 Specifying Tax Details
7.2.10 Authorizing Availment
7.3 Viewing LC Availed
8. Amending Details of LC
8.1 Amending LC
8.1.1 Procedure for Amending LC
8.1.2 Indicating Change of Value for a Field
8.1.3 Commission and Charges for Amendment
8.1.4 Amendment of an Unauthorized LC
8.1.5 Amending Import Pre-advice LC Contract
8.2 LC Amendment Details
8.2.1 Confirming LC Amendment
8.2.2 Details Tab
8.2.3 Parties Tab
8.2.4 Advices Tab
8.2.5 Specifying Collateral Details
8.2.6 Previewing Messages
8.3 Utilizing Import Licenses
8.3.1 Utilizing Import Licenses
8.3.2 Specifying Events
8.3.3 Specifying Fields
8.3.4 Authorizing Amendment Details
8.3.5 Confirming Amended Details
8.3.6 Amending details using the Contract screen
8.3.7 Rejecting Amended Details
8.4 Viewing LC Amendment
8.5 Operations on Confirmation Record
8.6 Uploading LC Amendment
9. Transferring LC
9.1 LC Transfer Details
9.1.1 Specifying LC Transfer Details
9.1.2 Parties Tab
9.1.3 Documents Tab
9.1.4 Shipment Tab
9.1.5 Goods Tab
9.1.6 Parties Limit Tab
9.1.7 Defining Charge Details
9.1.8 Viewing Event Details
9.1.9 Specifying Settlement Instructions
9.1.10 Capturing UDF Values
9.1.11 Previewing Messages
9.1.12 Note on Transfers made from Import and Export LCs
9.1.13 Authorizing LC Transfer
9.1.14 Viewing Details of Transfers made to the LC
10. Liquidation of Components of LC
10.1 Online Receivable/Payable Details
10.1.1 Maintaining Online Receivable/Payable Details
10.1.2 Liquidating Receivable Components of LC
10.1.3 Liquidating Receivable Components of LC Manually
10.1.4 Specifying Details of Advices for Liquidation
10.2 Generating ACK_TRACER and CON_TRACER Manually
11. Credit Limit Tracking for LC
11.1 Credit Limit Tracking Details
11.1.1 Specifying Whether Limit Tracking is Required
11.1.2 Specifying Limit Tracking Tenor
11.1.3 Import LC - None Revolving Limit Utilization
11.1.4 Indicating Credit Line under which the Liability Amount should be Tracked
12. Automatic Processes
12.1 Branch Parameters Details
12.1.1 Maintaining Branch Parameters
12.1.2 Invoking LC Batch Process
12.1.3 Automatic Events Executed During Beginning of Day (BOD)
12.1.4 Automatic Liquidation of Periodic Commission
12.1.5 Automatic Reinstatement of LC
12.1.6 Processes Run during End of Day (EOD)
12.1.7 Automatic Closure of LC
12.1.8 LC Auto Closure Batch
12.1.9 LC Automatic Status Update Batch
12.1.10 Status Change Batch Processing (CSDSTBTC)
12.1.11 Automatic Accrual of Commission
12.1.12 Memo Accrual of Commission
12.1.13 Accrual Control Report
12.1.14 Selection Options
12.1.15 Contents of Report
12.1.16 Generating Tracers
12.1.17 Executing Tracer Generation Function
12.1.18 Straight Through Processing of SWIFT Messages
12.1.19 STP of MT710 - Advise of Third Bank’s Documentary Credit
12.1.20 STP of MT707 – Amendment to Documentary Credit
12.1.21 STP of MT799 – Amendment of LC
12.1.22 STP of MT730 – Acknowledgement
12.1.23 STP of MT740 - Authorization to Reimburse
12.1.24 STP of MT747 – Amendment to an Authorization to Reimburse
12.1.25 STP of MT768 - Acknowledgement of a Guarantee Message
13. Reports
13.1 Expired LCs with Outstanding Items Report
13.1.1 Generating Expired LCs with Outstanding Items Report
13.1.2 Selection Options
13.1.3 Contents of Report
13.2 Closed LCs with Outstanding Items Report
13.2.1 Generating Closed LCs with Outstanding Items Report
13.2.2 Contents of Report
13.3 LCs Due to Expire Report
13.3.1 Generating LCs Due to Expire Report
13.3.2 Selection Options
13.3.3 Contents of Report
13.4 LCs Due to be Closed Report
13.4.1 Generating LCs Due to be Closed Report
13.4.2 Selection Options
13.4.3 Contents of the Report
13.5 Commission Due Report
13.5.1 Generating Commission Due Report
13.5.2 Selection Options
13.5.3 Contents of Report
13.6 Commission Activity Report
13.6.1 Generating Commission Activity Report
13.6.2 Selection Options
13.6.3 Contents of Report
13.7 Unreplied Tracers Report
13.7.1 Generating Unreplied Tracers Report
13.7.2 Contents of Report
13.8 Confirmed LC Report
13.8.1 Generating Confirmed LC Report
13.8.2 Selection Options
13.8.3 Contents of Report
13.9 Overrides Report
13.9.1 Generating Overrides Report
13.9.2 Selection Options
13.9.3 Contents of Report
13.10 LC Daily Activity Journal Report
13.10.1 Generating LC Daily Activity Journal Report
13.10.2 Selection Options
13.10.3 Contents of the Report
13.11 Accruals Control Report
13.11.1 Generating Accruals Control Report
13.11.2 Selection Options
13.11.3 Contents of Report
13.12 Commission Activity 3 Report
13.12.1 Generating Commission Activity 3 Report
13.12.2 Selection Options
13.12.3 Contents of Report
13.13 Periodic Commission Activity Report
13.13.1 Generating Periodic Commission Activity Report
13.13.2 Contents of Report
13.14 Process Exception Report
13.14.1 Generating Process Exception Report
13.14.2 Selection Options
13.14.3 Contents of Report
13.15 Import License Details Report
13.15.1 Generating Import License Details Report
13.15.2 Selection Options
13.15.3 Content of the Report
13.16 Import License Utilization Report
13.16.1 Generating Import License Utilization Report
13.16.2 Contents of Report
13.17 Lodged Guarantee Claim Report
13.17.1 Generating Lodged Guarantee Claim Report
13.17.2 Contents of Report
14. Annexure A - Accounting Entries for LCs
14.1 Accounting Entries for LCs
14.1.1 LC Events
14.1.2 Amount Tags
14.1.3 Accounting Roles
14.2 Event-Accounting Entries
14.2.1 BISS: Booking of an import LC
14.2.2 AVAL: Availment Under LC
14.2.3 CLOS: Closure of an LC / Guarantee
14.2.4 REIN: Reinstatement of an LC / Guarantee
14.2.5 BADV: Advising an LC
14.2.6 BCFM: Confirming an LC
14.2.7 BPRE: Pre-advising an LC
14.2.8 BANC: Advising and Confirming An LC
14.2.9 AMND: Amendment
14.2.10 AOCF: Amendment from Open to Open and Confirm
14.2.11 APAD: Amendment from Pre-advice to Advice
14.2.12 APAC: Amendment from Pre-advice to Advice and Confirm
14.2.13 REVR: Reversal
14.2.14 ACCR: Accrual of Commission
14.2.15 CALC: Periodic Commission Calculation Date
14.2.16 CLIQ: Liquidation of Commission
14.2.17 ROPN: Reopening of an LC
14.2.18 CANC: Cancellation of an LC
14.2.19 TRGN: Generation of Tracers
14.2.20 AATC: Amendment from Advice to Confirm
14.2.21 RASN: Reassign an LC
14.2.22 Transfer of an LC
14.2.23 RAVL: Reversal of Availment
14.2.24 BKSG: Booking of Shipping Guarantee
14.2.25 CASG: Cancellation of Shipping Guarantee
14.2.26 APRE: Amendment of LC with Pre-advice
15. Annexure B – Events, Advices and SDEs for LC
15.1 Event - Advices for LCs
15.2 LC Advices
15.2.1 ISB_BEN_CL
15.2.2 GUA_CLAIM_ADV
15.2.3 LC_AMND_INSTR (MT 707)
15.2.4 LC_INSTRUMENT (MT 700/MT 701)
15.2.5 GUARANTEE (MT 760)
15.2.6 LC_INSTR_COPY
15.2.7 LC_ACK_ADVICE (MT 730)
15.2.8 PADV_CL
15.2.9 LC_PRE_ADVICE (MT 705)
15.2.10 LC_ACK_AMEND
15.2.11 LC_CASH_COL_ADV
15.2.12 LC_AMD_AUTH_REB (MT 747)
15.2.13 AMD_IMP_CR
15.2.14 GUA_AMD_INSTR (MT 767)
15.2.15 LC_AM_INST_COPY
15.2.16 ACK_TRACER
15.2.17 CHG_COM_TRACER
15.2.18 CON_TRACER
15.2.19 LC_CANCEL_ADV
15.2.20 PADV_TO_ADVCON
15.2.21 ADV_TO_ADVCON
15.2.22 AMD_EXP_CR
15.2.23 LC Messages
15.2.24 Generating Multiple Copies of LC Instrument
15.2.25 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
15.2.26 LC event - Messages
15.2.27 BISS: Booking of an Import LC
15.2.28 AVAL: Availment under LC
15.2.29 CLOS: Closure of an LC / Guarantee
15.2.30 REIN: Reinstatement of an LC / Guarantee
15.2.31 BADV: Advising an LC
15.2.32 BCFM: Confirming an LC
15.2.33 BPRE: Pre-advising an LC
15.2.34 BANC: Advising and Confirming an LC
15.2.35 REIS: Reissue of Guarantee
15.2.36 AMND: LC Amendments
15.2.37 REVR: Reversal
15.2.38 ACCR: Accrual of Commission
15.2.39 CALC: Periodic Commission Calculation Date
15.2.40 CLIQ: Liquidation of Commission
15.2.41 ROPN: Reopening of an LC
15.2.42 TRGN: End of Day Check for Tracers
15.2.43 CANC: Cancellation of an LC
15.2.44 APAC: Amendment from Pre-advice to Advice and Confirm
15.2.45 APAD: Amendment from Pre-advice to Advice
15.2.46 RASN: Reassign an LC
15.2.47 RAVL: Reversal of availment
15.2.48 CALC: Periodic commission calculation
15.2.49 Advice Generated for the Insurance Company
15.2.50 Advice Generated for Counterparty
15.3 LC SDEs
16. Annexure C - SWIFT Category 7 Messages
16.1 List of SWIFT Messages
16.2 SWIFT Advices
16.3 Details of MT202 (General Financial Institution Transfer)
17. Annexure D - Letters of Credit Glossary
17.1 List of Important Terms
18. Function ID Glossary