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
5.2.22 Remarks
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
5.8.4 Specifying Document Details
5.8.5 Remarks
5.9 Viewing Islamic Guarantee Claim Details
5.10 Guarantee Claim Settlement
5.10.1 Settling Guarantee Claim
5.10.2 Main Tab
5.10.3 Advices Tab
5.10.4 Viewing Guarantee Claim Settlement
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
6.18 Remarks
6.19 Common Group Message
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 Remarks
8.2.9 Previewing Messages
8.2.10 Authorizing Amendment Details
8.2.11 Confirming Amended Details
8.2.12 Amending details using the Contract screen
8.2.13 Rejecting Amended Details
8.2.14 Viewing Islamic LC Amendment Details
8.3 Operations on Confirmation Record
8.4 Uploading Islamic LC Amendment
9. Islamic Letter of Credit Registration
9.1 Islamic Letters of Credit Registration
9.1.1 Islamic Letters of Credit Registration Details
9.1.2 Main Tab
9.1.3 Parties Tab
9.1.4 Advice Button
9.1.5 Viewing Islamic LC Registration Input Summary
9.2 Islamic LC Amendment Registration Input
10. Islamic LC Transfer
10.1 Islamic LC Transfer
10.1.1 Transferring Islamic LC
10.1.2 Specifying the Parties Involved in the Transfer
10.1.3 Specifying Goods, Shipping and Document details for an Islamic LC
10.1.4 Parties Limit Tab
10.1.5 Defining Charge Details
10.1.6 Viewing Event Details
10.1.7 Specifying Settlement Instructions
10.1.8 Capturing UDF Values
10.1.9 Previewing Messages
10.1.10 Remarks
10.1.11 Common Group Message
10.1.12 Note on Transfers from Import and Export Islamic LCs
10.1.13 Viewing Details of the Transfers made to the Islamic LC
11. Liquidation of Receivable Components
11.1 Online Receivable/Payable Details
11.2 Maintaining Online Receivable/Payable Details
11.2.1 Liquidating the Receivable Components of an Islamic LC
11.2.2 Manual Liquidation of Receivable Components for the Islamic LC
11.2.3 Specifying Details of the Advices for the Liquidation
12. Credit Limit Tracking for an Islamic LC
12.1 Credit Limit Tracking
12.1.1 Specifying whether Limit Tracking is Required
12.1.2 Indicating the Customer against Whom the Islamic LC Liability Amount is Tracked
12.1.3 Specifying the Limit Tracking Tenor
12.1.4 Indicating the Credit Line for Liability Amount Tracking
13. Automatic Processes
13.1 Maintaining Branch Parameters
13.2 Invoking the Batch Process
13.2.1 Automatic Events Executed During Beginning of Day (BOD)
13.2.2 Automatic Liquidation of Periodic Commission
13.2.3 Automatic Reinstatement of an Islamic LC
13.2.4 Processes Run during End of Day (EOD)
13.2.5 Automatic Closure of an Islamic LC
13.2.6 Automatic Accrual of Commission
13.2.7 Memo Accrual of Commission
13.2.8 Accrual Control Report
13.2.9 Selection Options
13.2.10 Contents of the Report
13.2.11 Generating Tracers
13.2.12 Intra Day Accruals
14. Reports
14.1 Expired LCs with Outstanding Items Report
14.1.1 Selection Options
14.1.2 Contents of Report
14.2 LCs Due to Expire Report
14.2.1 Selection Options
14.2.2 Contents of Report
14.3 LCs Due to be Closed Report
14.3.1 Selection Options
14.3.2 Contents of the Report
14.4 Commission Due Report
14.4.1 Selection Options
14.4.2 Contents of Report
14.5 Commission Activity Report
14.5.1 Selection Options
14.5.2 Contents of Report
14.6 Report on Open Ended Islamic LCs
14.6.1 Contents of the Report
14.7 Un-replied Tracers Report
14.7.1 Contents of Report
14.8 Confirmed LC Report
14.8.1 Selection Options
14.8.2 Contents of Report
14.9 LC Overrides Report
14.9.1 Selection Options
14.9.2 Contents of Report
14.10 Daily Activity Report
14.10.1 Selection Options
14.10.2 Contents of the Report
14.11 Accruals Control Report
14.11.1 Selection Options
14.11.2 Contents of Report
14.12 Commission Activity Report
14.12.1 Contents of Report
14.13 Process Exception Report
14.13.1 Selection Options
14.13.2 Contents of Report
14.14 Confirmed LI Outstanding Report
14.14.1 Contents of Report
14.15 Expired Export Islamic Letters of Credit Report
14.15.1 Contents of Report
14.16 Guarantees Due for Closure Report
14.16.1 Contents of Report
14.17 Outstanding Guarantees Report
14.17.1 Contents of Report
14.18 Reimburse Bank Report
14.18.1 Contents of Report
14.19 Suspense Charges Account Receivable Report
14.19.1 Contents of Report
14.20 Transferred Islamic Letters Of Credit Report
14.20.1 Contents of Report
14.21 Suspense Charges Account Receivable Report
14.21.1 Contents of Report
15. Annexure A - Accounting Entries
15.1 Islamic LC Events
15.2 Amount Tags
15.3 Accounting Roles
15.4 Event-Accounting Entries
15.4.1 BISS: Booking of an import Islamic LC
15.4.2 Accounting Roles for Transfer of Charge & Commission Components from Islamic LC to BC
15.4.3 Accounting Entries for Transfer of Charge & Commission Components from Islamic LC to BC
15.4.4 Collateral Bridge Accounting Role
15.4.5 AVAL: Availment under Islamic LC
15.4.6 CLOS: Closure of an Islamic LC / Guarantee
15.4.7 REIN: Reinstatement of an Islamic LC / Guarantee
15.4.8 BADV: Advising an Islamic LC
15.4.9 BCFM: Confirming an Islamic LC
15.4.10 BPRE: Pre-advising an Islamic LC
15.4.11 BANC: Advising and Confirming an Islamic LC
15.4.12 AMND: Amendment
15.4.13 AOCF: Amendment from Open to Open and Confirm
15.4.14 APAD: Amendment from Pre-advice to Advice
15.4.15 APAC: Amendment from Pre-advice to Advice and Confirm
15.4.16 REVR: Reversal
15.4.17 ACCR: Accrual of Commission
15.4.18 CALC: Periodic Commission Calculation Date
15.4.19 CLIQ: Liquidation of Commission
15.4.20 ROPN: Reopening of an Islamic LC
15.4.21 CANC: Cancellation of an Islamic LC
15.4.22 TRGN: Generation of Tracers
15.4.23 AATC: Amendment from Advice to Confirm
15.4.24 RASN: Reassign an Islamic LC
15.4.25 RAVL: Reversal of Availment
15.4.26 MLIQ: Manual Liquidation of Islamic LC commission
15.4.27 WAIV: Waiver of Components during Manual Liquidation
16. Annexure B - Events and Advices
16.1 Islamic LC Events
16.2 Islamic LC Messages
16.3 Generating Multiple Copies of the Islamic LC Instrument
16.4 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
16.5 Islamic LC event - Messages
16.5.1 BISS: Booking of an Import Islamic LC
16.5.2 AVAL: Availment under Islamic LC
16.5.3 CLOS: Closure of an Islamic LC/Guarantee
16.5.4 REIN: Reinstatement of an Islamic LC/Guarantee
16.5.5 BADV: Advising an Islamic LC
16.5.6 BCFM: Confirming an Islamic LC
16.5.7 BPRE: Pre-advising an Islamic LC
16.5.8 BANC: Advising and Confirming an Islamic LC
16.5.9 REIS: Reissue of Guarantee
16.5.10 AMND: Islamic LC Amendments
16.5.11 REVR: Reversal
16.5.12 ACCR: Accrual of Commission
16.5.13 CALC: Periodic Commission Calculation Date
16.5.14 CLIQ: Liquidation of Commission
16.5.15 ROPN: Reopening of an Islamic LC
16.5.16 TRGN: End of Day Check for Tracers
16.5.17 CANC: Cancellation of an Islamic LC
16.5.18 APAC: Amendment from Pre-Advice to Advice and Confirm
16.5.19 APAD: Amendment from Pre-advice to Advice
16.5.20 RASN: Reassign an Islamic LC
16.5.21 RAVL: Reversal of Availment
16.5.22 CALC: Periodic Commission Calculation
16.5.23 Advice Generated for the Insurance Company
16.5.24 Advice Generated for the Counterparty
17. Function ID Glossary