16. 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:

16.1 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

16.2 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

 

16.3 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.

16.4 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

 

16.5 Islamic LC event - Messages

This section contains the following topics:

 

16.5.1 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

16.5.2 AVAL: Availment under Islamic LC

Event

Message/Advice

From

To

AVAL

LC_CHC_MSG

ABK

ISB

AVAL

LC_DR_MSG

ABK

BEN

16.5.3 CLOS: Closure of an Islamic LC/Guarantee

None

16.5.4 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

16.5.5 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

16.5.6 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

16.5.7 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

16.5.8 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

16.5.9 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

16.5.10 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

16.5.11 REVR: Reversal

Event

Message/Advice

From

To

REVR

LC_CNC_MADV

ISB

APP/ABK

REVR

LC_CR_MSG

ISB/ABK

APP/BEN

16.5.12 ACCR: Accrual of Commission

None

16.5.13 CALC: Periodic Commission Calculation Date

None

16.5.14 CLIQ: Liquidation of Commission

Event

Message/Advice

From

To

CLIQ

LC_DR_MSG

ISB/ABK

APP/BEN

16.5.15 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

16.5.16 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

16.5.17 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

16.5.18 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

16.5.19 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

16.5.20 RASN: Reassign an Islamic LC

None

16.5.21 RAVL: Reversal of Availment

None

16.5.22 CALC: Periodic Commission Calculation

None

16.5.23 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]

16.5.24 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: