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 Commission Details
4.2.5 Specifying Free Format Text
4.2.6 Specifying Tracer Details
4.2.7 Specifying Charge Details
4.2.8 Specifying Tax Details
4.2.9 Specifying MIS Details
4.2.10 Setting Criteria for Status Change
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
5.1.4 LC online screen changes and validations
5.1.5 Specifying Contract Details
5.1.6 Preferences Tab
5.1.7 Parties Tab
5.1.8 Parties Limits Tab
5.1.9 Shipment Tab
5.1.10 Goods Tab
5.1.11 Documents Tab
5.1.12 Advices Tab
5.1.13 Tracers Tab
5.2 Viewing OFAC Check Response
5.2.1 Viewing Different Versions of Contract
5.3 Authorizing a Contract
5.4 Simulating LC Contract
5.4.1 Preference Tab
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 Reversing LC
5.10.1 Reversing an LC
5.10.2 Procedure for Reversing an LC
5.10.3 Contract Reversal
5.10.4 Event Reversal
5.11 Reassigning a Contract to another User
5.12 Liquidating Components
5.12.1 Authorizing a Contract
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
6.22.1 Common Group Message Maintenance
6.22.2 MT759 - Ancillary Trade Structured Message – Common group Maintenance Screen (MSDCOMPM)
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 Indicating Change of Value for a Field
8.1.2 Commission and Charges for Amendment
8.1.3 Amending Import Pre-advice LC Contract
8.1.4 Confirming LC Amendment
8.1.5 Details Tab
8.1.6 Parties Tab
8.1.7 Advices Tab
8.1.8 Goods Tab
8.1.9 Documents Tab
8.1.10 Specifying Draft Details
8.1.11 Specifying Collateral Details
8.1.12 Previewing Messages
8.1.13 Remarks
8.2 Utilizing Import Licenses
8.2.1 Utilizing Import Licenses
8.2.2 Specifying Events
8.2.3 Specifying Fields
8.2.4 Authorizing Amendment Details
8.2.5 Confirming Amended Details
8.2.6 Amending details using the Contract screen
8.2.7 Rejecting Amended Details
8.2.8 Viewing LC Amendment
8.3 Operations on Confirmation Record
8.4 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. Guarantees and Standby Letter of Credit
11.1 Guarantees and Standby Letters of Credit Contract Input
11.1.1 Processing Guarantees and Standby LC
11.1.2 Main Tab
11.1.3 Preferences Tab
11.1.4 Parties Tab
11.1.5 Parties Limits Tab
11.1.6 Document Tab
11.1.7 Tracers Tab
11.1.8 Terms and Conditions Tab
11.1.9 Advices Tab
11.1.10 Viewing Guarantees and SBLC Contract Details
11.2 Guarantees and Standby Letters of Credit Amendment
11.2.1 Processing Amendment of Guarantees and SBLC
11.2.2 Details Tab
11.2.3 Parties Tab
11.2.4 Documents Tab
11.2.5 Terms and Conditions Tab
11.2.6 Advices Tab
11.2.7 Viewing Guarantees and SBLC Amendment Details
11.3 Lodging Guarantee Claim
11.3.1 Lodging Guarantee Claim
11.3.2 Specifying Main Details
11.3.3 Specifying Advise Details
11.3.4 Specifying Document Details
11.3.5 Hold Button
11.3.6 Viewing Guarantee Claim Details
11.4 Guarantee Claim Settlement
11.4.1 Claim Settlement
11.4.2 Main Tab
11.4.3 Advices Tab
11.4.4 Hold Button
11.4.5 Viewing Claim Settlement
11.5 Guarantees and Standby Letters of Credit Transfer Input
11.5.1 Transferring Guarantees and Standby Letters of Credit
11.5.2 Parties Tab
11.5.3 Documents Tab
11.5.4 Parties Limits Tab
11.5.5 Viewing Guarantees and SBLC Transfer Details
12. Liquidation of Components of LC
12.1 Online Receivable/Payable Details
12.1.1 Maintaining Online Receivable/Payable Details
12.1.2 Liquidating Receivable Components of LC
12.1.3 Liquidating Receivable Components of LC Manually
12.1.4 Specifying Details of Advices for Liquidation
12.2 Generating ACK_TRACER and CON_TRACER Manually
13. Credit Limit Tracking for LC
13.1 Credit Limit Tracking Details
13.1.1 Specifying Whether Limit Tracking is Required
13.1.2 Specifying Limit Tracking Tenor
13.1.3 Import LC - None Revolving Limit Utilization
13.1.4 Indicating Credit Line under which the Liability Amount should be Tracked
14. Automatic Processes
14.1 Branch Parameters Details
14.1.1 Maintaining Branch Parameters
14.1.2 Invoking LC Batch Process
14.1.3 Automatic Events Executed During Beginning of Day (BOD)
14.1.4 Automatic Liquidation of Periodic Commission
14.1.5 Automatic Reinstatement of LC
14.1.6 Processes Run during End of Day (EOD)
14.1.7 Automatic Closure of LC
14.1.8 LC Auto Closure Batch
14.1.9 LC Automatic Status Update Batch
14.1.10 Status Change Batch Processing (CSDSTBTC)
14.1.11 Automatic Accrual of Commission
14.1.12 Memo Accrual of Commission
14.1.13 Accrual Control Report
14.1.14 Selection Options
14.1.15 Contents of Report
14.1.16 Generating Tracers
14.1.17 Executing Tracer Generation Function
14.1.18 Straight Through Processing of SWIFT Messages
14.1.19 STP of MT710 - Advise of Third Bank’s Documentary Credit
14.1.20 STP of MT707 – Amendment to Documentary Credit
14.1.21 STP of MT799 – Amendment of LC
14.1.22 STP of MT730 – Acknowledgement
14.1.23 STP of MT740 - Authorization to Reimburse
14.1.24 STP of MT747 – Amendment to an Authorization to Reimburse
14.1.25 STP of MT768 - Acknowledgement of a Guarantee Message
15. Reports
15.1 Expired LCs with Outstanding Items Report
15.1.1 Generating Expired LCs with Outstanding Items Report
15.1.2 Selection Options
15.1.3 Contents of Report
15.2 Closed LCs with Outstanding Items Report
15.2.1 Generating Closed LCs with Outstanding Items Report
15.2.2 Contents of Report
15.3 LCs Due to Expire Report
15.3.1 Generating LCs Due to Expire Report
15.3.2 Selection Options
15.3.3 Contents of Report
15.4 LCs Due to be Closed Report
15.4.1 Generating LCs Due to be Closed Report
15.4.2 Selection Options
15.4.3 Contents of the Report
15.5 Commission Due Report
15.5.1 Generating Commission Due Report
15.5.2 Selection Options
15.5.3 Contents of Report
15.6 Commission Activity Report
15.6.1 Generating Commission Activity Report
15.6.2 Selection Options
15.6.3 Contents of Report
15.7 Unreplied Tracers Report
15.7.1 Generating Unreplied Tracers Report
15.7.2 Contents of Report
15.8 Confirmed LC Report
15.8.1 Generating Confirmed LC Report
15.8.2 Selection Options
15.8.3 Contents of Report
15.9 Overrides Report
15.9.1 Generating Overrides Report
15.9.2 Selection Options
15.9.3 Contents of Report
15.10 LC Daily Activity Journal Report
15.10.1 Generating LC Daily Activity Journal Report
15.10.2 Selection Options
15.10.3 Contents of the Report
15.11 Accruals Control Report
15.11.1 Generating Accruals Control Report
15.11.2 Selection Options
15.11.3 Contents of Report
15.12 Commission Activity 3 Report
15.12.1 Generating Commission Activity 3 Report
15.12.2 Selection Options
15.12.3 Contents of Report
15.13 Periodic Commission Activity Report
15.13.1 Generating Periodic Commission Activity Report
15.13.2 Contents of Report
15.14 Process Exception Report
15.14.1 Generating Process Exception Report
15.14.2 Selection Options
15.14.3 Contents of Report
15.15 Import License Details Report
15.15.1 Generating Import License Details Report
15.15.2 Selection Options
15.15.3 Content of the Report
15.16 Import License Utilization Report
15.16.1 Generating Import License Utilization Report
15.16.2 Contents of Report
15.17 Lodged Guarantee Claim Report
15.17.1 Generating Lodged Guarantee Claim Report
15.17.2 Contents of Report
16. Annexure A - Accounting Entries for LCs
16.1 Accounting Entries for LCs
16.1.1 LC Events
16.1.2 Amount Tags
16.1.3 Accounting Roles
16.2 Event-Accounting Entries
16.2.1 BISS: Booking of an import LC
16.2.2 AVAL: Availment Under LC
16.2.3 CLOS: Closure of an LC / Guarantee
16.2.4 REIN: Reinstatement of an LC / Guarantee
16.2.5 BADV: Advising an LC
16.2.6 BCFM: Confirming an LC
16.2.7 BPRE: Pre-advising an LC
16.2.8 BANC: Advising and Confirming An LC
16.2.9 AMND: Amendment
16.2.10 AOCF: Amendment from Open to Open and Confirm
16.2.11 APAD: Amendment from Pre-advice to Advice
16.2.12 APAC: Amendment from Pre-advice to Advice and Confirm
16.2.13 REVR: Reversal of an LC Contract
16.2.14 REVE: Reversal of an LC Event
16.2.15 .ACCR: Accrual of Commission
16.2.16 CALC: Periodic Commission Calculation Date
16.2.17 CLIQ: Liquidation of Commission
16.2.18 ROPN: Reopening of an LC
16.2.19 CANC: Cancellation of an LC
16.2.20 TRGN: Generation of Tracers
16.2.21 AATC: Amendment from Advice to Confirm
16.2.22 RASN: Reassign an LC
16.2.23 Transfer of an LC
16.2.24 RAVL: Reversal of Availment
16.2.25 BKSG: Booking of Shipping Guarantee
16.2.26 CASG: Cancellation of Shipping Guarantee
16.2.27 APRE: Amendment of LC with Pre-advice
16.2.28 GCLP: Guarantee Claim Settlement
16.2.29 AASC: Amendment of Advice to Silent Confirmation
17. Annexure B – Events, Advices and SDEs for LC
17.1 Event - Advices for LCs
17.2 LC Advices
17.2.1 ISB_BEN_CL
17.2.2 GUA_CLAIM_ADV
17.2.3 LC_AMND_INSTR (MT 707)
17.2.4 LC_INSTRUMENT (MT 700/MT 701)
17.2.5 GUARANTEE (MT 760)
17.2.6 LC_INSTR_COPY
17.2.7 LC_ACK_ADVICE (MT 730)
17.2.8 PADV_CL
17.2.9 LC_PRE_ADVICE (MT 705)
17.2.10 LC_ACK_AMEND
17.2.11 LC_CASH_COL_ADV
17.2.12 LC_AMD_AUTH_REB (MT 747)
17.2.13 AMD_IMP_CR
17.2.14 GUA_AMD_INSTR (MT 767)
17.2.15 LC_AM_INST_COPY
17.2.16 ACK_TRACER
17.2.17 CHG_COM_TRACER
17.2.18 CON_TRACER
17.2.19 LC_CANCEL_ADV
17.2.20 PADV_TO_ADVCON
17.2.21 ADV_TO_ADVCON
17.2.22 AMD_EXP_CR
17.2.23 LC Messages
17.2.24 Generating Multiple Copies of LC Instrument
17.2.25 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
17.2.26 LC event - Messages
17.2.27 BISS: Booking of an Import LC
17.2.28 AVAL: Availment under LC
17.2.29 CLOS: Closure of an LC / Guarantee
17.2.30 REIN: Reinstatement of an LC / Guarantee
17.2.31 BADV: Advising an LC
17.2.32 BCFM: Confirming an LC
17.2.33 BPRE: Pre-advising an LC
17.2.34 BANC: Advising and Confirming an LC
17.2.35 REIS: Reissue of Guarantee
17.2.36 AMND: LC Amendments
17.2.37 REVR: Reversal of Contract
17.2.38 REVE: Reversal of Event
17.2.39 ACCR: Accrual of Commission
17.2.40 CALC: Periodic Commission Calculation Date
17.2.41 CLIQ: Liquidation of Commission
17.2.42 ROPN: Reopening of an LC
17.2.43 TRGN: End of Day Check for Tracers
17.2.44 CANC: Cancellation of an LC
17.2.45 APAC: Amendment from Pre-advice to Advice and Confirm
17.2.46 APAD: Amendment from Pre-advice to Advice
17.2.47 RASN: Reassign an LC
17.2.48 RAVL: Reversal of availment
17.2.49 CALC: Periodic commission calculation
17.2.50 Advice Generated for the Insurance Company
17.2.51 Advice Generated for Counterparty
17.3 LC SDEs
18. Annexure C - SWIFT Category 7 Messages
18.1 List of SWIFT Messages
18.2 SWIFT Advices
18.3 Details of MT202 (General Financial Institution Transfer)
19. Annexure D - Letters of Credit Glossary
19.1 List of Important Terms
20. Function ID Glossary