15. Annexure B - Events and Advices

This annexure contains details of the suggested messages that can be generated for the Islamic Letters of Credit (Islamic LC) module. The annexure lists details of the following suggested messages event-wise:

15.1 Islamic LC Events

The following is an exhaustive list of events that can take place during the lifecycle of an Islamic LC. In the subsequent paragraphs we shall examine the messages for each of the events listed below.

Event Code Event Description Remarks
ACCR Accrual (Of Commission) All Types
AMND Amendment All Types
AOCF Amendment from open to open and confirm Import only
APAC Amend - Pre-advice to Adv & confirm Export Only
APAD Amendment from Pre-advice to advice Export Only
AVAL Availment Only For Islamic LC’s
BADV Booking Of An Islamic LC With Operation Advise Export Islamic LC Only
BANC Booking Of An Islamic LC With Operation Advise And Confirm Export Islamic LC Only
BCFM Booking Of An Islamic LC With Operation Confirm Export Islamic LC Only
BISS Booking Of An Islamic LC Or Guarantee Issue (Open or Open & Confirm) Only For Import Islamic LC, Standby Islamic LC, Clean Islamic LC, Shipping Guar­antee And Guarantee
BPRE Booking Of An Islamic LC With Operation Pre-Advise Export Islamic LC Only
CALC Periodic commission calculation All types
CANC Cancellation of an Islamic LC All Types
CLIQ Commission Liquidation All Types
CLOS Closure Of An Islamic LC Or Guarantee All Types
RASN Re-assign an Islamic LC contract All types
RAVL Reversal of Availment All types
REIN Reinstating An Islamic LC Revolving Islamic LC’s
ROPN Reopening Of An Islamic LC All Types
REVR Reversal of contract All types
ROPN Reopening of an Islamic LC All types
TRGN Generation of tracers All types
REIS Reissue of Guarantee Guarantee Only

15.2 Islamic LC Messages

The exhaustive list of messages that can be generated during the lifecycle of an Islamic LC is listed below:

Message Mail Telex SWIFT From To
L/C Instrument Y Y Y ISB ABK/BEN
Amendment Instrument Y Y Y ISB ABK/BEN
Guarantee Instrument Y Y Y ISB ABK
Guarantee Amendment Y Y Y ISB ABK
Debit Advice Y Y Y ISB /ABK APP/BEN
Credit Advice (Generated automatically on Reversal) Y Y Y ISB /ABK APP/BEN
Charge Claim Advice Y Y Y ISB /ABK APP/BEN
Cash Collateral Advices Y Y Y ISB /ABK APP/ISB
Reimbursement Advice Y Y Y ISB RIB
Cancellation Advice Y N N ISB/ABK ABK/APP/BEN/RIB/ATB
Pre Advice Telex: MT-705 Y Y Y ISB ABK/BEN
Reimbursement Advice Telex: MT-756 Y Y Y ISB ABK/BEN
ACK of an Import LC: MT-730 Y Y Y ABK ISB
ACK of Receipt Of Amend­ment To LC Y N N ABK ISB
Authorization to Reimburse: MT-740 Y Y Y ISB REB
Amendment to Authorization to Reimburse: MT-740 Y Y Y ISB REB
When No ABK Y N N ISB BEN
Pre-Advise To BEN Y N N ABK BEN
Change From Pre-Advice To Advice Y N N ABK ATB/ BEN
Change From Pre-Advice To Advice And Confirm Y N N ABK ATB/BEN
Change From Advice To Advice And Confirm Y N N ABK ATB/ BEN
Amending An Import Credit, No ABK Y N N ISB/ABK BEN
Amending An Export Credit Previously Advised Or Con­firmed, Via ATB Y N N ABK ATB
Acknowledgment Tracer Y N N ISB ABK
Confirmation Tracer Y N N ISB ABK
Charges And Commission Tracer Y N N Issuing/ABK APP/BEN/ABK/ATB/ISB
Insurance Advice Y N N ISB Insurance Com­pany
Fax 700/707/LC confirmation Mail Message to counterparty Y N N ISB Counterparty
MT799 Y N Y ABK - Advis­ing Bank (SWIFT) ISB - Issuing Bank(SWIFT) APB - Appli­cant Bank(MAIL)   ISB - Issuing Bank APB - Applicant Bank APP - Applicant  

15.3 Generating Multiple Copies of the Islamic LC Instru­ment

You can generate multiple copies of the Islamic LC instrument with the same data and specify different headers for each of the copy that you generate. To generate multiple copies, you need to maintain specific details in the following screens:

1) Format File Maintenance Screen

To generate multiple copies, you need to maintain a file format that will be used for the message and advices. For the LC_Instrument advice, you must associate the ‘NUMCOPIESX’ advice tag, where X denotes the number of the copy that is generated. Here you can specify different headers for each copy.

Refer to the Maintaining Advice Formats chapter of Messaging System user manual for the procedure to define file formats.

2) Customer Address Maintenance Screen

In this screen, you need to specify the number of copies allowed for the message type LC_Instrument. The system generates the number of copies specified for the instrument at the time of authorization for the customer address maintained in the screen.

Refer to the Maintaining Addresses for a Customer chapter of Messaging System user manual for maintaining addresses for the customer.

3) Outgoing Message Browser

When you are generating multiple copies of the original message, the system classifies the outgoing message as original or a copy in the Outgoing Message Browser.

The ‘Copy’ box indicates whether the outgoing message is a copy and in the ‘No of Copy’ field the number of that message is also displayed. This will help you keep count of the number of copies that is generated for the same message.

Refer to the Processing Outgoing Messages chapter in Messaging System user manual for further details on the Outgoing Message Browser.

15.4 Generating Fax 700/707 LC Confirmation Mail Mes­sage Copy to Counterparty

You can generate Fax 700/707 LC confirmation Mail Message copy to counterparty.

To do this, you need to maintain specific details in the following screens:

1) Format File Maintenance Screen

To generate Fax 700/707 LC confirmation Mail Message copy, you need to maintain a file format that will be used for the message and advices. For the LC_Instrument advice, you must associate the ‘FAX_DUPIslamic LCATE’ advice tag, which carries the address of the receiver and a copy of the original message.

The advice format vs. message type mapping for the new message types should be as follows.

Module Message type Media
Islamic LC LC_INSTRUMENT_FAX FAX
Islamic LC LC_AMND_INSTR_FAX FAX

Refer to the Maintaining Advice Formats chapter of Messaging System user manual for the procedure to define file formats.

2) Customer Address Maintenance Screen

In this screen, you need to specify the format for the message type LC_INSTR_COPY and LC_AM_INST_COPY. The system generates the fax message for Islamic LC confirmation for the customer address maintained in the screen.

The customer address maintenance for media FAX should be as follows:

Module Message Type Format
Islamic LC LC_INSTR_COPY FAX_DUPIslamic LCATE
Islamic LC LC_AM_INST_COPY FAX_DUPIslamic LCATE

Refer to the Maintaining Addresses for a Customer chapter of Messaging System user manual for maintaining addresses for the customer.

Party Type Abbreviations:

The list of the parties that can be involved in an Islamic LC is as under:

Code Party Type
APP Applicant
ACC Accountee
ISB Issuing Bank
ABK Advising Bank
BEN Beneficiary
ATB Advise through bank
RIB Reimbursing Bank
REIS Reissue of Guarantee

 

15.5 Islamic LC event - Messages

This section contains the following topics:

15.5.1 BISS: Booking of an Import Islamic LC

Event Message/Advice From To
BISS LC_REIMB_ADV ISB RIB
BISS ISB_BEN_CL ISB BEN
BISS LC_AMND_INSTR ISB ABK/BEN
BISS LC_CHC_MSG ISB ABK
BISS LC_CASH_COL_ADV ISB/ABK APP/ISB
BISS LC_DR_MSG ISB APP/ABK
BISS LC_INSTRUMENT ISB ABK/BEN
BISS GUARANTEE ISB ABK/BEN
BISS LC_REIMB_ADV ISB ABK
BISS LC_RIM_MSG ISB RIB
BISS LC_INSTR_COPY ISB BEN

15.5.2 AVAL: Availment under Islamic LC

Event Message/Advice From To
AVAL LC_CHC_MSG ABK ISB
AVAL LC_DR_MSG ABK BEN

15.5.3 CLOS: Closure of an Islamic LC/Guarantee

None

15.5.4 REIN: Reinstatement of an Islamic LC/Guarantee

Event Message/Advice From To
REIN LC_AMND_INSTR ISB ABK/BEN
REIN LC_CHC_MSG ISB/ABK APP/BEN
REIN LC_DR_MSG ISB/ABK APP/BEN
REIN LC_INSTRUMENT ISB ABK/BEN

15.5.5 BADV: Advising an Islamic LC

Event Message/Advice From To
BADV LC_ACK_ADVICE ABK ISB
BADV LC_CHC_MSG ABK ISB
BADV LC_DR_MSG ABK BEN
BADV LC_ACK_ADVICE ABK ISB

15.5.6 BCFM: Confirming an Islamic LC

Event Message/Advice From To
BCFM LC_ACK_ADVICE ABK ISB
BCFM LC_CHC_MSG ABK ISB
BCFM LC_CASH_COL_ADV ABK ISB
BCFM LC_DR_MSG ABK BEN
BCFM LC_ACK_ADVICE ABK ISB

15.5.7 BPRE: Pre-advising an Islamic LC

Event Message/Advice From To
BPRE LC_ACK_ADVICE ABK ISB
BPRE LC_ATB_MSG ABK ATB
BPRE LC_CHC_MSG ISB/ABK ABK/ISB
BPRE LC_ACK_ADVICE ABK ISB
BPRE LC_PA_MSG ISB ABK
BPRE PADV_CL ABK ATB
BPRE PADV_CL ABK BEN

15.5.8 BANC: Advising and Confirming an Islamic LC

Event Message/Advice From To
BANC LC_ACK_ADVICE ABK ISB
BANC LC_CHC_MSG ABK ISB
BANC LC_CASH_COL_ADV ABK ISB
BANC LC_DR_MSG ABK BEN
BANC LC_ACK_ADVICE ABK ISB

15.5.9 REIS: Reissue of Guarantee

Event Message/Advice From To
REIS LC_INSTRUMENT ISB ABK/BEN
REIS GUARANTEE ISB ABK/BEN
REIS LC_PRE_ADVICE ABK ISB

15.5.10 AMND: Islamic LC Amendments

Event Message/Advice From To
AMND LC_AMD_MSG ISB ABK
AMND AMD_EXP_CR ABK ATB
AMND AMD_EXP_CR ABK BEN
AMND LC_ACK_AMND ABK ISB
AMND LC_CASH_COL_ADV ABK ISB
AMND LC_DR_MSG ABK BEN
AMND LC_AMD_AUTH_REB ISB RIB
AMND AMD_IMP_CR ISB BEN
AMND GUA_AMD_INSTR ISB ABK
AMND LC_AMND_INSTR ISB ABK/BEN
AMND LC_CHC_MSG ISB/ABK ISB/ABK
AMND LC_DR_MSG ISB/ABK APP/BEN
AMND LC_INSTRUMENT ISB ABK/BEN
AMND GUA_AMD_INSTR ISB ABK/BEN
AMND LC_REIMB_ADV ISB ABK
AMND LC_REIMB_ADV ISB RIB
AMND LC_AM_INST_COPY ISB BEN

15.5.11 REVR: Reversal

Event Message/Advice From To
REVR LC_CNC_MADV ISB APP/ABK
REVR LC_CR_MSG ISB/ABK APP/BEN

15.5.12 ACCR: Accrual of Commission

None

15.5.13 CALC: Periodic Commission Calculation Date

None

15.5.14 CLIQ: Liquidation of Commission

Event Message/Advice From To
CLIQ LC_DR_MSG ISB/ABK APP/BEN

15.5.15 ROPN: Reopening of an Islamic LC

Event Message/Advice From To
ROPN LC_CHC_MSG ISB/ABK ISB/ABK
ROPN LC_DR_MSG ISB/ABK APP/BEN
ROPN LC_INSTRUMENT ISB ABK/BEN
ROPN GUARANTEE ISB ABK/BEN

15.5.16 TRGN: End of Day Check for Tracers

Event Message/Advice From To
CHTR ACK_TRACER ISB ABK
CHTR CHG_COM_TRACER ISB/ABK APP/BEN/ABK/ATB/ISB
CHTR CON_TRACER ISB ABK

15.5.17 CANC: Cancellation of an Islamic LC

Event Message/Advice From To
CANC LC_CANCEL_ADV ISB ABK/APP/BEN/RIB
CANC LC_CANCEL_ADV ABK BEN/ABK/ATB/RIB

15.5.18 APAC: Amendment from Pre-Advice to Advice and Confirm

Event Message/Advice From To
APAC PADV_TO_ADVCON ABK ATB
APAC PADV_TO_ADVCON ABK BEN
APAC PADV_TO_ADVCON ABK ATB
APAC PADV_TO_ADVCON ABK BEN
APAC AMD_EXP_CR ABK ATB
APAC AMD_EXP_CR ABK BEN
APAC LC_ACK_AMND ABK ISB
APAC LC_CASH_COL_ADV ABK ISB
APAC LC_DR_MSG ABK BEN

15.5.19 APAD: Amendment from Pre-advice to Advice

Event Message/Advice From To
APAD LC_AMD_MSG ISB ABK
APAD AMD_EXP_CR ABK ATB
APAD AMD_EXP_CR ABK BEN
APAD LC_ACK_AMND ABK ISB
APAD LC_DR_MSG ABK BEN
AATC LC_AMD_MSG ISB ABK
AATC ADV_TO_ADVCON ABK ATB
AATC AMD_EXP_CR ABK ATB
AATC AMD_EXP_CR ABK BEN
AATC LC_ACK_AMND ABK ISB
AATC LC_DR_MSG ABK BEN

15.5.20 RASN: Reassign an Islamic LC

None

15.5.21 RAVL: Reversal of Availment

None

15.5.22 CALC: Periodic Commission Calculation

None

15.5.23 Advice Generated for the Insurance Company

The LC_INSURANCEADV message is generated by the bank and sent to the Insurance Company at the time of Opening (BISS) and Amendment (AMND) of Islamic LC contract.

An insurance company advice gives details of the deal.

INSURANCE ADVICE

To,

_INSURANCECO_

_INSURANCECO_ADDR1_

_INSURANCECO_ADDR2_

_INSURANCECO_ADDR3_

_INSURANCECO_ADDR4_

Dear Sirs,

SUB: Open Policy/Cover No : _INSURANCECO_POIslamic LCYNO_

Our Letter Of Credit No. : _USERREFNO_ DATED : _ISSUE_DATE_

This is to advise you that we have today established the subject

Letter of Credit the details of which are as under. Kindly provide

us with Insurance Policy/Certificate/Declaration/Cover Note, which

ever is applicable, at your earliest

L/C No. : _CONTREFNO_

_IRREVOCABLE_

Amount : ABOUT _LC_CCY_ _LC_AMOUNT_ CFR

Expiring On : _EXPIRY_DATE_

Opener of L/C: _APP_NAME_

_APP_ADDR1_

_APP_ADDR2_

_APP_ADDR3_

_APP_ADDR4_

Merchandise : _GOODS_DESCR_

Shipment From : _FROM_PLACE_

To : _TO_PLACE_

By : _SHIPMENT_DET_

Not Later Than: _LATEST_SHP_DATE_

Partial Shipment : _PARTIAL_SHP_

Transshipment : _TRANS_SHP_

Yours faithfully For Investbank PSC

[FILE COPY]

15.5.24 Advice Generated for the Counterparty

The LC_INSTR_COPY and LC_AM_INST_COPY message types will be processed and an advice will be generated by the bank and sent to the counterparty at the time of Islamic LC confirmation.

The advice format maintenance will be as follows:

FAX_DUPIslamic LCATE
_ADDRESS_
_ORIGINALMESSAGE_

Islamic LC Contract processing will specify the receiver of the new message types as the applicant. The message processing function will process confirmation/duplicate messages based on the following: