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
6.21 Remarks
6.22 Common Group Message
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 Remarks
7.2.11 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 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
8.2.7 Remarks
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
8.3.8 Viewing LC Amendment
8.4 Operations on Confirmation Record
8.5 Uploading LC Amendment
9. Letter of Credit Registration
9.1 Letter of Credit Registration
9.1.1 Letter of Credit Registration Details
9.1.2 Main Tab
9.1.3 Parties Tab
9.1.4 Advice Button
9.1.5 Viewing LC Registeration Input Summary
9.2 LC Amendment Registeration Input
10. Transferring LC
10.1 LC Transfer Details
10.1.1 Specifying LC Transfer Details
10.1.2 Parties Tab
10.1.3 Documents Tab
10.1.4 Shipment Tab
10.1.5 Goods Tab
10.1.6 Parties Limit Tab
10.1.7 Defining Charge Details
10.1.8 Viewing Event Details
10.1.9 Specifying Settlement Instructions
10.1.10 Capturing UDF Values
10.1.11 Previewing Messages
10.1.12 Remarks
10.1.13 Common Group Message
10.1.14 Note on Transfers made from Import and Export LCs
10.1.15 Authorizing LC Transfer
10.1.16 Viewing Details of Transfers made to the LC
11. Liquidation of Components of LC
11.1 Online Receivable/Payable Details
11.1.1 Maintaining Online Receivable/Payable Details
11.1.2 Liquidating Receivable Components of LC
11.1.3 Liquidating Receivable Components of LC Manually
11.1.4 Specifying Details of Advices for Liquidation
11.2 Generating ACK_TRACER and CON_TRACER Manually
12. Credit Limit Tracking for LC
12.1 Credit Limit Tracking Details
12.1.1 Specifying Whether Limit Tracking is Required
12.1.2 Specifying Limit Tracking Tenor
12.1.3 Import LC - None Revolving Limit Utilization
12.1.4 Indicating Credit Line under which the Liability Amount should be Tracked
13. Automatic Processes
13.1 Branch Parameters Details
13.1.1 Maintaining Branch Parameters
13.1.2 Invoking LC Batch Process
13.1.3 Automatic Events Executed During Beginning of Day (BOD)
13.1.4 Automatic Liquidation of Periodic Commission
13.1.5 Automatic Reinstatement of LC
13.1.6 Processes Run during End of Day (EOD)
13.1.7 Automatic Closure of LC
13.1.8 LC Auto Closure Batch
13.1.9 LC Automatic Status Update Batch
13.1.10 Status Change Batch Processing (CSDSTBTC)
13.1.11 Automatic Accrual of Commission
13.1.12 Memo Accrual of Commission
13.1.13 Accrual Control Report
13.1.14 Selection Options
13.1.15 Contents of Report
13.1.16 Generating Tracers
13.1.17 Executing Tracer Generation Function
13.1.18 Straight Through Processing of SWIFT Messages
13.1.19 STP of MT710 - Advise of Third Bank’s Documentary Credit
13.1.20 STP of MT707 – Amendment to Documentary Credit
13.1.21 STP of MT799 – Amendment of LC
13.1.22 STP of MT730 – Acknowledgement
13.1.23 STP of MT740 - Authorization to Reimburse
13.1.24 STP of MT747 – Amendment to an Authorization to Reimburse
13.1.25 STP of MT768 - Acknowledgement of a Guarantee Message
14. Reports
14.1 Expired LCs with Outstanding Items Report
14.1.1 Generating Expired LCs with Outstanding Items Report
14.1.2 Selection Options
14.1.3 Contents of Report
14.2 Closed LCs with Outstanding Items Report
14.2.1 Generating Closed LCs with Outstanding Items Report
14.2.2 Contents of Report
14.3 LCs Due to Expire Report
14.3.1 Generating LCs Due to Expire Report
14.3.2 Selection Options
14.3.3 Contents of Report
14.4 LCs Due to be Closed Report
14.4.1 Generating LCs Due to be Closed Report
14.4.2 Selection Options
14.4.3 Contents of the Report
14.5 Commission Due Report
14.5.1 Generating Commission Due Report
14.5.2 Selection Options
14.5.3 Contents of Report
14.6 Commission Activity Report
14.6.1 Generating Commission Activity Report
14.6.2 Selection Options
14.6.3 Contents of Report
14.7 Unreplied Tracers Report
14.7.1 Generating Unreplied Tracers Report
14.7.2 Contents of Report
14.8 Confirmed LC Report
14.8.1 Generating Confirmed LC Report
14.8.2 Selection Options
14.8.3 Contents of Report
14.9 Overrides Report
14.9.1 Generating Overrides Report
14.9.2 Selection Options
14.9.3 Contents of Report
14.10 LC Daily Activity Journal Report
14.10.1 Generating LC Daily Activity Journal Report
14.10.2 Selection Options
14.10.3 Contents of the Report
14.11 Accruals Control Report
14.11.1 Generating Accruals Control Report
14.11.2 Selection Options
14.11.3 Contents of Report
14.12 Commission Activity 3 Report
14.12.1 Generating Commission Activity 3 Report
14.12.2 Selection Options
14.12.3 Contents of Report
14.13 Periodic Commission Activity Report
14.13.1 Generating Periodic Commission Activity Report
14.13.2 Contents of Report
14.14 Process Exception Report
14.14.1 Generating Process Exception Report
14.14.2 Selection Options
14.14.3 Contents of Report
14.15 Import License Details Report
14.15.1 Generating Import License Details Report
14.15.2 Selection Options
14.15.3 Content of the Report
14.16 Import License Utilization Report
14.16.1 Generating Import License Utilization Report
14.16.2 Contents of Report
14.17 Lodged Guarantee Claim Report
14.17.1 Generating Lodged Guarantee Claim Report
14.17.2 Contents of Report
15. Annexure A - Accounting Entries for LCs
15.1 Accounting Entries for LCs
15.1.1 LC Events
15.1.2 Amount Tags
15.1.3 Accounting Roles
15.2 Event-Accounting Entries
15.2.1 BISS: Booking of an import LC
15.2.2 AVAL: Availment Under LC
15.2.3 CLOS: Closure of an LC / Guarantee
15.2.4 REIN: Reinstatement of an LC / Guarantee
15.2.5 BADV: Advising an LC
15.2.6 BCFM: Confirming an LC
15.2.7 BPRE: Pre-advising an LC
15.2.8 BANC: Advising and Confirming An LC
15.2.9 AMND: Amendment
15.2.10 AOCF: Amendment from Open to Open and Confirm
15.2.11 APAD: Amendment from Pre-advice to Advice
15.2.12 APAC: Amendment from Pre-advice to Advice and Confirm
15.2.13 REVR: Reversal
15.2.14 ACCR: Accrual of Commission
15.2.15 CALC: Periodic Commission Calculation Date
15.2.16 CLIQ: Liquidation of Commission
15.2.17 ROPN: Reopening of an LC
15.2.18 CANC: Cancellation of an LC
15.2.19 TRGN: Generation of Tracers
15.2.20 AATC: Amendment from Advice to Confirm
15.2.21 RASN: Reassign an LC
15.2.22 Transfer of an LC
15.2.23 RAVL: Reversal of Availment
15.2.24 BKSG: Booking of Shipping Guarantee
15.2.25 CASG: Cancellation of Shipping Guarantee
15.2.26 APRE: Amendment of LC with Pre-advice
16. Annexure B – Events, Advices and SDEs for LC
16.1 Event - Advices for LCs
16.2 LC Advices
16.2.1 ISB_BEN_CL
16.2.2 GUA_CLAIM_ADV
16.2.3 LC_AMND_INSTR (MT 707)
16.2.4 LC_INSTRUMENT (MT 700/MT 701)
16.2.5 GUARANTEE (MT 760)
16.2.6 LC_INSTR_COPY
16.2.7 LC_ACK_ADVICE (MT 730)
16.2.8 PADV_CL
16.2.9 LC_PRE_ADVICE (MT 705)
16.2.10 LC_ACK_AMEND
16.2.11 LC_CASH_COL_ADV
16.2.12 LC_AMD_AUTH_REB (MT 747)
16.2.13 AMD_IMP_CR
16.2.14 GUA_AMD_INSTR (MT 767)
16.2.15 LC_AM_INST_COPY
16.2.16 ACK_TRACER
16.2.17 CHG_COM_TRACER
16.2.18 CON_TRACER
16.2.19 LC_CANCEL_ADV
16.2.20 PADV_TO_ADVCON
16.2.21 ADV_TO_ADVCON
16.2.22 AMD_EXP_CR
16.2.23 LC Messages
16.2.24 Generating Multiple Copies of LC Instrument
16.2.25 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
16.2.26 LC event - Messages
16.2.27 BISS: Booking of an Import LC
16.2.28 AVAL: Availment under LC
16.2.29 CLOS: Closure of an LC / Guarantee
16.2.30 REIN: Reinstatement of an LC / Guarantee
16.2.31 BADV: Advising an LC
16.2.32 BCFM: Confirming an LC
16.2.33 BPRE: Pre-advising an LC
16.2.34 BANC: Advising and Confirming an LC
16.2.35 REIS: Reissue of Guarantee
16.2.36 AMND: LC Amendments
16.2.37 REVR: Reversal
16.2.38 ACCR: Accrual of Commission
16.2.39 CALC: Periodic Commission Calculation Date
16.2.40 CLIQ: Liquidation of Commission
16.2.41 ROPN: Reopening of an LC
16.2.42 TRGN: End of Day Check for Tracers
16.2.43 CANC: Cancellation of an LC
16.2.44 APAC: Amendment from Pre-advice to Advice and Confirm
16.2.45 APAD: Amendment from Pre-advice to Advice
16.2.46 RASN: Reassign an LC
16.2.47 RAVL: Reversal of availment
16.2.48 CALC: Periodic commission calculation
16.2.49 Advice Generated for the Insurance Company
16.2.50 Advice Generated for Counterparty
16.3 LC SDEs
17. Annexure C - SWIFT Category 7 Messages
17.1 List of SWIFT Messages
17.2 SWIFT Advices
17.3 Details of MT202 (General Financial Institution Transfer)
18. Annexure D - Letters of Credit Glossary
18.1 List of Important Terms
19. Function ID Glossary