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 Goods Tab
  • 5.2.8 Documents Tab
  • 5.2.9 Advices Tab
  • 5.2.10 Tracers Tab
  • 5.3 Viewing OFAC Check Response
  • 5.3.1 Viewing Different Versions of Contract
  • 5.4 Authorizing a Contract
  • 5.5 Simulating LC Contract
  • 5.5.1 Preference Tab
  • 5.6 Viewing LC Contract
  • 5.7 Multilevel Authorization of a Contract
  • 5.8 Cancel LC
  • 5.8.1 Cancelling LC
  • 5.8.2 Procedure for Cancelling LC
  • 5.8.3 Generating Cancellation Advice in SWIFT Format
  • 5.8.4 Cancellation of Shipping Guarantee
  • 5.9 Close LC
  • 5.9.1 Closing an LC
  • 5.9.2 Procedure for Closing an LC
  • 5.10 Reopening LC
  • 5.10.1 Procedure for Reopening LC
  • 5.11 Reassigning a Contract to another User
  • 5.12 Liquidating Components
  • 5.12.1 Authorizing a Contract
  • 5.13 Lodging Guarantee Claim
  • 5.13.1 Lodging Guarantee Claim
  • 5.13.2 Specifying Main Details
  • 5.13.3 Specifying Advise Details
  • 5.13.4 Specifying Document Details
  • 5.14 Viewing Guarantee Claim Details
  • 5.15 Guarantee Claim Settlement
  • 5.15.1 Claim Settlement
  • 5.15.2 Main Tab
  • 5.15.3 Advices Tab
  • 5.15.4 Viewing Claim Settlement

    • 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
  • 6.23 Specifying Import License Utilization
  • 6.24 Viewing Import License Utilization Details
  • 6.24.1 Operations on Import License Utilization

    • 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 Goods Tab
  • 8.2.6 Documents Tab
  • 8.2.7 Specifying Draft Details
  • 8.2.8 Specifying Collateral Details
  • 8.2.9 Previewing Messages
  • 8.2.10 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 Registration Input Summary
  • 9.2 LC Amendment Registration 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 Advices Tab
  • 10.1.8 Defining Charge Details
  • 10.1.9 Viewing Event Details
  • 10.1.10 Specifying Settlement Instructions
  • 10.1.11 Capturing UDF Values
  • 10.1.12 Previewing Messages
  • 10.1.13 Remarks
  • 10.1.14 Common Group Message
  • 10.1.15 Note on Transfers made from Import and Export LCs
  • 10.1.16 Authorizing LC Transfer
  • 10.1.17 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