Contents
1. Preface
1.1 Introduction
1.2 Audience
1.3 Documentation Accessibility
1.4 Organization
1.5 Related Documents
1.6 Glossary of Icons
2. Islamic Letters of Credit - An Overview
2.1 Features
2.2 Operations supported on an Islamic LC
2.3 SWIFT Messages for an Import Islamic LC
2.4 SWIFT Messages for an Export Islamic LC
2.5 SWIFT Messages for a Standby Islamic LC
2.6 SWIFT Messages for a Clean Islamic LC
2.7 SWIFT Messages for a Guarantee
2.8 SWIFT Messages for a Shipping Guarantee
2.9 Processing Commissions and Charges
2.10 Variations Supported for an Islamic LC
2.11 Red Clause Letter of Credit
2.12 Revocable and Irrevocable Islamic LCs
2.13 Transferable and Non Transferable Islamic LCs
2.14 Revolving and Non Revolving Islamic LCs
2.15 Sight and Usance Islamic LC
2.16 Open Ended Islamic LCs
2.17 Cash Collateral against an Islamic LC
2.18 Availment against an Islamic LC
2.19 Reports
3. Maintenance for Islamic Letters of Credit
3.1 Documents and Clauses details
3.1.1 Maintaining Documents and Clauses
3.1.2 Specifying Values for the User Defined Fields
3.1.3 Operations on the Document Maintenance Record
3.2 Goods Details
3.2.1 Maintaining Goods
3.2.2 Specifying Values for the UDF
3.2.3 Operations on a Goods/Commodity Maintenance Record
3.3 Free Format Text (FFT) Codes Details
3.3.1 Maintaining Free Format Text (FFT) Codes
3.3.2 Specifying Values for the User Defined Fields
3.3.3 Operations on the FFT Maintenance Record
3.3.4 Maintaining INCO Terms
3.4 Maintaining Insurance Company Details
3.5 Maintaining Customer Insurance Details
3.5.1 Capturing Utilization History Details
3.6 Maintaining Import License Expiry Date
3.7 Application of Exchange Rate Type based on Transaction Amount
4. Defining Attributes specific to an Islamic LC Product
4.1 Creating an Islamic LC Product
4.2 Specifying Preferences for a Product
4.2.1 Specifying Tenor related Details
4.2.2 Specifying Cash Collateral Details
4.2.3 Specifying Islamic LC Authorization Rekey Fields
4.2.4 Commission Related Preferences
4.2.5 Specifying Tolerance for an LC under the Product
4.2.6 Specifying the Closure Days
4.2.7 Specifying the Exchange Rate related Details for a Product
4.2.8 Specifying the Period of Presentation
4.2.9 Specifying Finance Details
4.2.10 Specifying Accrual Details
4.2.11 Specifying Confirmation Details
4.2.12 Specifying Prepayment Details
4.2.13 Generating Fee Claim Advice
4.3 Generating Islamic LC Expiry/Closure Advices
4.3.1 Opting to Track Limits
4.3.2 Setting Criteria for Status Change
4.3.3 Specifying the Applicable Rules of a Guarantee
4.3.4 Generating Advices for the Insurance Company
4.3.5 Specifying Event for Reissue of Guarantee
4.3.6 Generating Advices for Faxing Islamic LC Confirmation to Counterparty
5. Processing an Islamic LC Contract
5.1 Islamic LC Contract Details Screen
5.1.1 Invoking the Islamic LC Contract Details Screen
5.1.2 Specifying Details of an Islamic LC
5.1.3 Uploading Islamic LCs/Guarantees
5.2 Islamic LC Contract Details Screen Description
5.2.1 Description of the Islamic LC Contract Details Screen
5.2.2 Specifying the Main Details of an Islamic LC
5.2.3 Specifying Reimbursement Undertaking
5.2.4 Viewing the Media Addresses of a Customer
5.2.5 Capturing Draft Details
5.2.6 Specifying Insurance Details
5.2.7 Specifying Details of the Parties involved in an Islamic LC
5.2.8 Specifying Parties Limits
5.2.9 Specifying the Media Details for a Party
5.2.10 Specifying Credit Administration Details
5.2.11 Specifying Advices for an Islamic LC
5.2.12 Specifying the Free Format Instructions that should accompany an Advice
5.2.13 Specifying Goods and Shipping for an Islamic LC
5.2.14 Specifying Document Details
5.2.15 Specifying Tracer Details for an Islamic LC
5.2.16 Specifying Other Details of an LC
5.2.17 Specifying Settlement Instructions
5.2.18 Viewing Event Details
5.2.19 Defining Commission and Charge Details for an Islamic LC
5.2.20 Maintaining Collateral Details
5.2.21 Collateral Transfer from Islamic LC to Bills
5.3 Contracts to Deposits and Accounts Details
5.3.1 Linking Contracts to Deposits and Accounts
5.3.2 Viewing the Amended Details of a Contract
5.3.3 Viewing the Deferred Component Details
5.4 Previewing Messages
5.5 Viewing Different Versions of a Contract
5.6 Cancelling an Islamic LC
5.6.1 Procedure for Cancelling an Islamic LC
5.7 Closing, Reopening, and Black listing an Islamic LC
5.7.1 Closing an Islamic LC
5.7.2 Reopening an Islamic LC
5.7.3 Black Listing Islamic LCs
5.8 Lodging Islamic Guarantee Claim
5.8.1 Lodging Islamic Guarantee Claim
5.8.2 Specifying Main Details
5.8.3 Specifying Advise Details
5.9 Viewing Islamic Guarantee Claim Details
6. Capturing Additional Details
6.1 Capturing Drafts Details
6.2 Specifying Settlement Instructions
6.3 Events Details
6.3.1 Viewing Events Details
6.3.2 Viewing the Accounting Entries Passed for the Islamic LC
6.3.3 Viewing Advices Applicable to Contract
6.4 Capturing MIS Details
6.5 Defining Commission
6.6 Defining Charge Details
6.7 Specifying Tax Details
6.8 Maintaining Collateral Details
6.9 Linking Contracts to Deposits and Accounts
6.10 Viewing Amended Details of Contract
6.11 Specifying Transfer Details
6.12 Capturing UDF Values
6.13 Capturing Split Settlement Values
6.13.1 Basis Details
6.13.2 Split Details
6.14 Specifying Finance Preference
6.14.1 Indicating Preferences for the Profit Components
6.15 Viewing Deferred Profit Component Values
6.16 Utilizing Import Licenses
6.17 Previewing Messages
6.17.1 Viewing Message/Advice
6.17.2 Printing Message/Advices
7. Making an Availment
7.1 Islamic LC Availment Input
7.1.1 Invoking the Islamic LC Contract Availment Screen
7.1.2 Specifying Cash Collateral Details for an Availment
7.1.3 Maintaining Settlement Instructions for an Availment
7.1.4 Invoking the Settlement Screens
7.1.5 Capturing Account Details
7.1.6 Capturing Message Details for the Availment
7.1.7 Capturing Party Details
7.1.8 Clearing Details Tab
7.1.9 Viewing Advice Details
7.1.10 Specifying Charge Details
7.1.11 Specifying Commission Details
7.1.12 Specifying Tax Details
7.1.13 Reversal of an Availment
7.1.14 Viewing Event Details
7.1.15 Accounting Entries
8. Amending Details of an Islamic LC
8.1 Procedure for Amending an Islamic LC
8.1.1 Indicating a Change of Value for a Field
8.1.2 Commission and Charges for the Amendment
8.1.3 Amendment of an Unauthorized Islamic LC
8.2 Islamic LC Amendment Details
8.2.1 Confirming Islamic LC Amendment
8.2.2 Parties Tab
8.2.3 Advices Tab
8.2.4 Specifying Collateral Details
8.2.5 Specifying Events
8.2.6 Specifying Fields
8.2.7 Utilizing Import Licenses
8.2.8 Previewing Messages
8.2.9 Authorizing Amendment Details
8.2.10 Confirming Amended Details
8.2.11 Amending details using the Contract screen
8.2.12 Rejecting Amended Details
8.3 Operations on Confirmation Record
8.4 Uploading Islamic LC Amendment
9. Islamic LC Transfer
9.1 Islamic LC Transfer
9.1.1 Transferring Islamic LC
9.1.2 Specifying the Parties Involved in the Transfer
9.1.3 Specifying Goods, Shipping and Document details for an Islamic LC
9.1.4 Parties Limit Tab
9.1.5 Defining Charge Details
9.1.6 Viewing Event Details
9.1.7 Specifying Settlement Instructions
9.1.8 Capturing UDF Values
9.1.9 Previewing Messages
9.1.10 Note on Transfers from Import and Export Islamic LCs
9.1.11 Viewing Details of the Transfers made to the Islamic LC
10. Liquidation of Receivable Components
10.1 Online Receivable/Payable Details
10.2 Maintaining Online Receivable/Payable Details
10.2.1 Liquidating the Receivable Components of an Islamic LC
10.2.2 Manual Liquidation of Receivable Components for the Islamic LC
10.2.3 Specifying Details of the Advices for the Liquidation
11. Credit Limit Tracking for an Islamic LC
11.1 Credit Limit Tracking
11.1.1 Specifying whether Limit Tracking is Required
11.1.2 Indicating the Customer against Whom the Islamic LC Liability Amount is Tracked
11.1.3 Specifying the Limit Tracking Tenor
11.1.4 Indicating the Credit Line for Liability Amount Tracking
12. Automatic Processes
12.1 Maintaining Branch Parameters
12.2 Invoking the Batch Process
12.2.1 Automatic Events Executed During Beginning of Day (BOD)
12.2.2 Automatic Liquidation of Periodic Commission
12.2.3 Automatic Reinstatement of an Islamic LC
12.2.4 Processes Run during End of Day (EOD)
12.2.5 Automatic Closure of an Islamic LC
12.2.6 Automatic Accrual of Commission
12.2.7 Memo Accrual of Commission
12.2.8 Accrual Control Report
12.2.9 Selection Options
12.2.10 Contents of the Report
12.2.11 Generating Tracers
12.2.12 Intra Day Accruals
13. Reports
13.1 Expired LCs with Outstanding Items Report
13.1.1 Selection Options
13.1.2 Contents of Report
13.2 LCs Due to Expire Report
13.2.1 Selection Options
13.2.2 Contents of Report
13.3 LCs Due to be Closed Report
13.3.1 Selection Options
13.3.2 Contents of the Report
13.4 Commission Due Report
13.4.1 Selection Options
13.4.2 Contents of Report
13.5 Commission Activity Report
13.5.1 Selection Options
13.5.2 Contents of Report
13.6 Report on Open Ended Islamic LCs
13.6.1 Contents of the Report
13.7 Un-replied Tracers Report
13.7.1 Contents of Report
13.8 Confirmed LC Report
13.8.1 Selection Options
13.8.2 Contents of Report
13.9 LC Overrides Report
13.9.1 Selection Options
13.9.2 Contents of Report
13.10 Daily Activity Report
13.10.1 Selection Options
13.10.2 Contents of the Report
13.11 Accruals Control Report
13.11.1 Selection Options
13.11.2 Contents of Report
13.12 Commission Activity Report
13.12.1 Contents of Report
13.13 Process Exception Report
13.13.1 Selection Options
13.13.2 Contents of Report
13.14 Confirmed LI Outstanding Report
13.14.1 Contents of Report
13.15 Expired Export Islamic Letters of Credit Report
13.15.1 Contents of Report
13.16 Guarantees Due for Closure Report
13.16.1 Contents of Report
13.17 Outstanding Guarantees Report
13.17.1 Contents of Report
13.18 Reimburse Bank Report
13.18.1 Contents of Report
13.19 Suspense Charges Account Receivable Report
13.19.1 Contents of Report
13.20 Transferred Islamic Letters Of Credit Report
13.20.1 Contents of Report
13.21 Suspense Charges Account Receivable Report
13.21.1 Contents of Report
14. Annexure A - Accounting Entries
14.1 Islamic LC Events
14.2 Amount Tags
14.3 Accounting Roles
14.4 Event-Accounting Entries
14.4.1 BISS: Booking of an import Islamic LC
14.4.2 Accounting Roles for Transfer of Charge & Commission Components from Islamic LC to BC
14.4.3 Accounting Entries for Transfer of Charge & Commission Components from Islamic LC to BC
14.4.4 Collateral Bridge Accounting Role
14.4.5 AVAL: Availment under Islamic LC
14.4.6 CLOS: Closure of an Islamic LC / Guarantee
14.4.7 REIN: Reinstatement of an Islamic LC / Guarantee
14.4.8 BADV: Advising an Islamic LC
14.4.9 BCFM: Confirming an Islamic LC
14.4.10 BPRE: Pre-advising an Islamic LC
14.4.11 BANC: Advising and Confirming an Islamic LC
14.4.12 AMND: Amendment
14.4.13 AOCF: Amendment from Open to Open and Confirm
14.4.14 APAD: Amendment from Pre-advice to Advice
14.4.15 APAC: Amendment from Pre-advice to Advice and Confirm
14.4.16 REVR: Reversal
14.4.17 ACCR: Accrual of Commission
14.4.18 CALC: Periodic Commission Calculation Date
14.4.19 CLIQ: Liquidation of Commission
14.4.20 ROPN: Reopening of an Islamic LC
14.4.21 CANC: Cancellation of an Islamic LC
14.4.22 TRGN: Generation of Tracers
14.4.23 AATC: Amendment from Advice to Confirm
14.4.24 RASN: Reassign an Islamic LC
14.4.25 RAVL: Reversal of Availment
14.4.26 MLIQ: Manual Liquidation of Islamic LC commission
14.4.27 WAIV: Waiver of Components during Manual Liquidation
15. Annexure B - Events and Advices
15.1 Islamic LC Events
15.2 Islamic LC Messages
15.3 Generating Multiple Copies of the Islamic LC Instrument
15.4 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
15.5 Islamic LC event - Messages
15.5.1 BISS: Booking of an Import Islamic LC
15.5.2 AVAL: Availment under Islamic LC
15.5.3 CLOS: Closure of an Islamic LC/Guarantee
15.5.4 REIN: Reinstatement of an Islamic LC/Guarantee
15.5.5 BADV: Advising an Islamic LC
15.5.6 BCFM: Confirming an Islamic LC
15.5.7 BPRE: Pre-advising an Islamic LC
15.5.8 BANC: Advising and Confirming an Islamic LC
15.5.9 REIS: Reissue of Guarantee
15.5.10 AMND: Islamic LC Amendments
15.5.11 REVR: Reversal
15.5.12 ACCR: Accrual of Commission
15.5.13 CALC: Periodic Commission Calculation Date
15.5.14 CLIQ: Liquidation of Commission
15.5.15 ROPN: Reopening of an Islamic LC
15.5.16 TRGN: End of Day Check for Tracers
15.5.17 CANC: Cancellation of an Islamic LC
15.5.18 APAC: Amendment from Pre-Advice to Advice and Confirm
15.5.19 APAD: Amendment from Pre-advice to Advice
15.5.20 RASN: Reassign an Islamic LC
15.5.21 RAVL: Reversal of Availment
15.5.22 CALC: Periodic Commission Calculation
15.5.23 Advice Generated for the Insurance Company
15.5.24 Advice Generated for the Counterparty
16. Function ID Glossary