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
3.4.1 Specifying the Company Details
3.4.2 Specifying Settlement Account Details
3.5 Maintaining Customer Insurance Details
3.5.1 Capturing Utilization History Details
3.6 Maintaining Import License Expiry Date
3.6.1 Specifying Expiry Date Details
3.7 Application of Exchange Rate Type based on Transaction Amount
3.7.1 Specifying the Exchange Rate Maintenance Details
4. Defining Attributes specific to an Islamic LC Product
4.1 Creating an Islamic LC Product
4.1.1 Specifying Preferences for a Product
4.1.2 Specifying Sanction Check Details
4.2 Generating Islamic LC Expiry/Closure Advices
4.2.1 Opting to Track Limits
4.2.2 Setting Criteria for Status Change
4.2.3 Specifying the Applicable Rules of a Guarantee
4.2.4 Generating Advices for the Insurance Company
4.2.5 Specifying Event for Reissue of Guarantee
4.2.6 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 Viewing the Media Addresses of a Customer
5.2.4 Capturing Draft Details
5.2.5 Specifying Insurance Details
5.2.6 Specifying Details of the Parties involved in an Islamic LC
5.2.7 Specifying Parties Limits
5.2.8 Updating Parties’ Limits on Amendment of Islamic LC Contract
5.2.9 Updating Parties’ Limits on Islamic LC Availments
5.2.10 Specifying the Media Details for a Party
5.2.11 Specifying Credit Administration Details
5.2.12 Specifying Advices for an Islamic LC
5.2.13 Specifying the Free Format Instructions that should accompany an Advice
5.2.14 Specifying Shipping for an Islamic LC
5.2.15 Specifying Goods Details
5.2.16 Specifying Document Details
5.2.17 Specifying Tracer Details for an Islamic LC
5.2.18 Specifying Other Details of an LC
5.2.19 Specifying Settlement Instructions
5.2.20 Viewing Event Details
5.2.21 Defining Commission and Charge Details for an Islamic LC
5.2.22 Maintaining Collateral Details
5.2.23 Collateral Transfer from Islamic LC to Bills
5.2.24 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 Reversing Islamic LC
5.8.1 Reversing an Islamic LC
5.8.2 Procedure for Reversing an Islamic LC
5.8.3 Contract Reversal
5.8.4 Event Reversal
5.9 Lodging Islamic Guarantee Claim
5.9.1 Lodging Islamic Guarantee Claim
5.9.2 Specifying Main Details
5.9.3 Specifying Advice Details
5.9.4 Specifying Document Details
5.9.5 Remarks
5.10 Viewing Islamic Guarantee Claim Details
5.11 Guarantee Claim Settlement
5.11.1 Settling Guarantee Claim
5.11.2 Main Tab
5.11.3 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. Islamic Guarantees and Standby Letter of Credit
11.1 Islamic Guarantees and Standby Letters of Credit Contract Input
11.1.1 Processing Islamic 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 Islamic Guarantees and Standby Letters of Credit Amendment
11.2.1 Processing Amendment of Islamic 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 Islamic Guarantees Transfer Input
11.3.1 Islamic Guarantees Transfer Input
11.3.2 Parties Tab
11.3.3 Documents Tab
11.3.4 Parties Limits Tab
11.3.5 Viewing Islamic Guarantees and SBLC Transfer Details
12. Liquidation of Receivable Components
12.1 Online Receivable/Payable Details
12.2 Maintaining Online Receivable/Payable Details
12.2.1 Liquidating the Receivable Components of an Islamic LC
12.2.2 Manual Liquidation of Receivable Components for the Islamic LC
12.2.3 Specifying Details of the Advices for the Liquidation
13. Credit Limit Tracking for an Islamic LC
13.1 Credit Limit Tracking
13.1.1 Specifying whether Limit Tracking is Required
13.1.2 Indicating the Customer against Whom the Islamic LC Liability Amount is Tracked
13.1.3 Specifying the Limit Tracking Tenor
13.1.4 Indicating the Credit Line for Liability Amount Tracking
14. Automatic Processes
14.1 Maintaining Branch Parameters
14.1.1 Specifying the Branch Details
14.1.2 Specifying Batch Processing Details
14.2 Invoking the Batch Process
14.2.1 Automatic Events Executed During Beginning of Day (BOD)
14.2.2 Automatic Liquidation of Periodic Commission
14.2.3 Automatic Reinstatement of an Islamic LC
14.2.4 Processes Run during End of Day (EOD)
14.2.5 Automatic Closure of an Islamic LC
14.2.6 Automatic Accrual of Commission
14.2.7 Memo Accrual of Commission
14.2.8 Accrual Control Report
14.2.9 Selection Options
14.2.10 Contents of the Report
14.2.11 Generating Tracers
14.2.12 Intra Day Accruals
15. Reports
15.1 Expired LCs with Outstanding Items Report
15.1.1 Selection Options
15.1.2 Contents of Report
15.2 LCs Due to Expire Report
15.2.1 Selection Options
15.2.2 Contents of Report
15.3 LCs Due to be Closed Report
15.3.1 Selection Options
15.3.2 Contents of the Report
15.4 Commission Due Report
15.4.1 Selection Options
15.4.2 Contents of Report
15.5 Commission Activity Report
15.5.1 Selection Options
15.5.2 Contents of Report
15.6 Report on Open Ended Islamic LCs
15.6.1 Contents of the Report
15.7 Un-replied Tracers Report
15.7.1 Contents of Report
15.8 Confirmed LC Report
15.8.1 Selection Options
15.8.2 Contents of Report
15.9 LC Overrides Report
15.9.1 Selection Options
15.9.2 Contents of Report
15.10 Daily Activity Report
15.10.1 Selection Options
15.10.2 Contents of the Report
15.11 Accruals Control Report
15.11.1 Selection Options
15.11.2 Contents of Report
15.12 Commission Activity Report
15.12.1 Contents of Report
15.13 Process Exception Report
15.13.1 Selection Options
15.13.2 Contents of Report
15.14 Confirmed LI Outstanding Report
15.14.1 Contents of Report
15.15 Expired Export Islamic Letters of Credit Report
15.15.1 Contents of Report
15.16 Guarantees Due for Closure Report
15.16.1 Contents of Report
15.17 Outstanding Guarantees Report
15.17.1 Contents of Report
15.18 Reimburse Bank Report
15.18.1 Contents of Report
15.19 Suspense Charges Account Receivable Report
15.19.1 Contents of Report
15.20 Transferred Islamic Letters Of Credit Report
15.20.1 Contents of Report
15.21 Suspense Charges Account Receivable Report
15.21.1 Contents of Report
16. Annexure A - Accounting Entries
16.1 Islamic LC Events
16.2 Amount Tags
16.3 Accounting Roles
16.4 Event-Accounting Entries
16.4.1 BISS: Booking of an import Islamic LC
16.4.2 Accounting Roles for Transfer of Charge & Commission Components from Islamic LC to BC
16.4.3 Accounting Entries for Transfer of Charge & Commission Components from Islamic LC to BC
16.4.4 Collateral Bridge Accounting Role
16.4.5 AVAL: Availment under Islamic LC
16.4.6 CLOS: Closure of an Islamic LC / Guarantee
16.4.7 REIN: Reinstatement of an Islamic LC / Guarantee
16.4.8 BADV: Advising an Islamic LC
16.4.9 BCFM: Confirming an Islamic LC
16.4.10 BPRE: Pre-advising an Islamic LC
16.4.11 BANC: Advising and Confirming an Islamic LC
16.4.12 AMND: Amendment
16.4.13 AOCF: Amendment from Open to Open and Confirm
16.4.14 APAD: Amendment from Pre-advice to Advice
16.4.15 APAC: Amendment from Pre-advice to Advice and Confirm
16.4.16 REVR: Reversal of an Islamic LC Contract
16.4.17 REVE: Reversal of an Islamic LC Event
16.4.18 ACCR: Accrual of Commission
16.4.19 CALC: Periodic Commission Calculation Date
16.4.20 CLIQ: Liquidation of Commission
16.4.21 ROPN: Reopening of an Islamic LC
16.4.22 CANC: Cancellation of an Islamic LC
16.4.23 TRGN: Generation of Tracers
16.4.24 AATC: Amendment from Advice to Confirm
16.4.25 RASN: Reassign an Islamic LC
16.4.26 RAVL: Reversal of Availment
16.4.27 MLIQ: Manual Liquidation of Islamic LC commission
16.4.28 WAIV: Waiver of Components during Manual Liquidation
16.4.29 GCLP: Guarantee Claim Settlement
16.4.30 AASC: Amendment of Advice to Silent Confirmation
17. Annexure B - Events and Advices
17.1 Islamic LC Events
17.2 Islamic LC Messages
17.3 Generating Multiple Copies of the Islamic LC Instrument
17.4 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
17.5 Islamic LC event - Messages
17.5.1 BISS: Booking of an Import Islamic LC
17.5.2 AVAL: Availment under Islamic LC
17.5.3 CLOS: Closure of an Islamic LC/Guarantee
17.5.4 REIN: Reinstatement of an Islamic LC/Guarantee
17.5.5 BADV: Advising an Islamic LC
17.5.6 BCFM: Confirming an Islamic LC
17.5.7 BPRE: Pre-advising an Islamic LC
17.5.8 BANC: Advising and Confirming an Islamic LC
17.5.9 REIS: Reissue of Guarantee
17.5.10 AMND: Islamic LC Amendments
17.5.11 REVR: Reversal of Contract
17.5.12 REVE: Reversal of Event
17.5.13 ACCR: Accrual of Commission
17.5.14 CALC: Periodic Commission Calculation Date
17.5.15 CLIQ: Liquidation of Commission
17.5.16 ROPN: Reopening of an Islamic LC
17.5.17 TRGN: End of Day Check for Tracers
17.5.18 CANC: Cancellation of an Islamic LC
17.5.19 APAC: Amendment from Pre-Advice to Advice and Confirm
17.5.20 APAD: Amendment from Pre-advice to Advice
17.5.21 RASN: Reassign an Islamic LC
17.5.22 RAVL: Reversal of Availment
17.5.23 CALC: Periodic Commission Calculation
17.5.24 Advice Generated for the Insurance Company
17.5.25 Advice Generated for the Counterparty
18. Function ID Glossary