1.6 Trade Finance

Table 1-10 Enhancements in Trade Finance Conventional

Enhancements Description
Unstructured Address As a regulatory compliance for SWIFT, the unstructured address fields are updated to add two new fields viz Town/State/City and Post code out of which ‘Town/State/City’ will be mandatory. The new fields for unstructured will now be supported in the inquiry screens as well.
The newly added fields of unstructured address are as follows
  • Town/State/City– Structured/Hybrid
  • Post Box – Structured/Hybrid
The change is incorporated in all the transaction screens where address is field is inputted or displayed. Transactions are as follows:
  1. Import LC and Import Collection
    1. Import LC Issuance and amendment
    2. View Import LC
    3. View Import LC Bill
    4. View Import Collection
  2. Export LC, Transfer LC and Export Collection
    1. LC Amendment Acceptance
    2. Initiate Transfer LC / Transferred LC
    3. Amend Transfer LC / Transferred LC Amendment
    4. View Export LC
    5. View Export LC Bill
    6. View Transfer LC
    7. Initiate Export Collection
    8. View Export Collection
  3. Guarantees and Claims
    1. Outward Guarantee Issuance / Initiate Guarantee or Standby LC
    2. View Guarantee / Standby LC – Outward and Inward
    3. Cancellation of Guarantee
    4. Guarantee Amendment / Amend Guarantee or Standby LC
    5. Guarantee Amendment Acceptance
    6. Initiate Inward Claim Guarantee Lodgement
    7. View Claim
  4. Shipping Guarantee, Maintenance, Templates, and Save Actions
    1. Initiate Shipping Guarantee
    2. View Shipping Guarantee
    3. Other Party Maintenance
    4. Assignee Maintenance
    5. Template n Drafts – Import LC Initiation
    6. Template n Drafts – BG Initiation
    7. Template n Drafts – Export Collection
    8. Template n Drafts – Shipping Guarantee
  5. Bulk File Upload Templates
    1. Bulk Template – LC Initiation
    2. Bulk Template – Bank Guarantee Template
    3. Bulk Template – Other Party Maintenance
Initiate Bank Guarantee Existing field of governing law has been split into 2 fields viz Governing Law and Sub Division and a new optional fields added for Place of Jurisdiction and HS Code
View Inward and Outward Bank Guarantee New fields viz Governing Law and HS code which were added in Guarantee Issuance will also be visible or displayed in the Inquiry screen of guarantee.
Initiate Inward Guarantee Claim Lodgement New fields are added in the screens as follows:
  • Charges – 71D
  • Total Amount Claim – 33a/b
View Inward and Outward Guarantee Claim New fields viz Charges 71D and Total Amount Claim 33a/b which were added in claim lodgement will also be visible or displayed in the Inquiry screen of Claims.
View Export LC Export LC inquiry screen will display the underlying loan details in ‘Loan Details’ when preshipment loan is availed against an Export LC.
Update, Accept and Settle Import Collection New feature has been introduced in Import collection update, Accept and settle transactions, to enable corporates to avail loan against trust receipt.
A new checkbox will allow the user to indicate whether the loan is required. When selected, the user must provide the relevant information, including:
  • Trust Receipt Number
  • Trust Receipt Date
  • Warehouse Receipt Applicability—Yes or No – If selected, then ‘Due Date’ for the ware house receipt should be provided.
Changes in Bulk File Template for Beneficairy Maintenance New address fields of Unstructured address and structured address are added in following bulk file templates.
  • Other Party Maintenance
  • Letter of Credit Issuance
  • Bank Guarantee Issuance
Export Collection Initiation, Modify and Inquiry New field of Settlement account has been introduced in the screen to allow corporate users to input the desired settlement account to receive the collection proceeds. User can modify or edit the account as well. The account can also be queried in view screen.

New fields to capture Invoice data is introduced while initiating export collection transaction as invoice is the main underlying document of an export trade arrangement. User should be able to capture multiple records of invoices. While modifying the transaction, user will be able to only view the invoice data. Inquiry screen will also list the captured invoice data.
Allow input of Preferred Exchange Rate New feature was added to enable corporate users to input preferred exchange rate while providing collateral and charges. All the transactions where collateral and charges are available will support input of preferred rate and deal reference number.
Structured/Unstructured Address As a regulatory compliance all the address fields are updated to display Structured/Hybrid type of address on the inquiry screens. The fields applicable for Structured/Hybrid and unstructured will now be supported in the inquiry screens. Structured/Hybrid address will be displayed if the same is maintained for any party in the host system.

The Structured/unstructured and hybrid data fields are as follows-

  1. Department. – Structured/Hybrid
  2. Sub Department – Structured/Hybrid
  3. Address Line 1 – Hybrid/Unstructured
  4. Address Line 2 – Hybrid/Unstructured
  5. Address Line 3 – Unstructured
  6. Building Name – Structured/Hybrid
  7. Building Number – Structured/Hybrid
  8. Floor -– Structured/Hybrid
  9. Room – Structured/Hybrid
  10. Street Name – Structured/Hybrid
  11. Town Location Name – Structured/Hybrid
  12. Post Box – Structured/Hybrid
  13. Postal Code – Structured/Hybrid
  14. District Name – Structured/Hybrid
  15. Country Subdivision – Structured/Hybrid
  16. Country – Structured/Hybrid/Unstructured
  17. City – Structured/Hybrid

The change is now incorporated for all the transaction screens.
Import Collection Acceptance A new transaction of Import Collection Acceptance has been introduced. This transaction allows users to accept the received import collection documents so that the same can be processed further by the bank. The transaction enables users to:
  • Provide preferable settlement account details
  • Apply for a loan if required
  • Select preferred exchange rate or forward contract
Import LC Issuance A new field, Transport Mode, is introduced in the existing Import Letter of Credit Issuance transaction screen. This field has been added in the Document and Conditions tab. When the selected transport mode is Sea or Air, a message is displayed if no documents are selected for the document type Transport.
Import LC Amendment A new field, Transport Mode, is introduced in the existing Import Letter of Credit Amendment transaction screen. This field has been added in the Document and Conditions tab. When the selected transport mode is Sea or Air, a message is displayed if no documents are selected for the document type Transport.
Structured/Unstructured Address As part of regulatory compliance, all address fields have been updated to display Structured/Hybrid types of addresses on inquiry screens. Fields applicable for Structured/Hybrid and Unstructured types are now supported. Structured/Hybrid address will be displayed if maintained for any party in the host system. The Structured/Hybrid/Unstructured fields are as follows:
  • Department. – Structured/Hybrid
  • Sub Department – Structured/Hybrid
  • Address Line 1 – Hybrid/Unstructured
  • Address Line 2 – Hybrid/Unstructured
  • Address Line 3 – Unstructured
  • Building Name – Structured/Hybrid
  • Building Number – Structured/Hybrid
  • Floor -– Structured/Hybrid
  • Room – Structured/Hybrid
  • Street Name – Structured/Hybrid
  • Town Location Name – Structured/Hybrid
  • Post Box – Structured/Hybrid
  • Postal Code – Structured/Hybrid
  • District Name – Structured/Hybrid
  • Country Subdivision – Structured/Hybrid
  • Country – Structured/Hybrid/Unstructured
  • City – Structured/Hybrid
The change has been incorporated for the following inquiry screens:
  • View Import Letter of Credit Islamic
  • View Export Letter of Credit Islamic
  • View Import LC Bill Islamic
  • View Export LC Bill Islamic
  • View Transferred LC Islamic
  • View Import Collection Islamic
  • View Export Collection Islamic
  • View Inward Guarantee/Standby LC Islamic
  • View Outward Guarantee/Standby LC Islamic
  • View Inward Claim Islamic
  • View Outward Claim Islamic
  • View Shipping Guarantee Islamic

Table 1-11 Enhancements in Trade Finance Islamic

Enhancements Description
Unstructured Address As a regulatory compliance for SWIFT, the unstructured address fields are updated to add two new fields viz Town/State/City and Post code out of which ‘Town/State/City’ will be mandatory. The new fields for unstructured will now be supported in the inquiry screens as well.
The newly added fields of unstructured address are as follows
  • Town/State/City– Structured/Hybrid
  • Post Box – Structured/Hybrid
The change is incorporated in all the transaction screens where address is field is inputted or displayed. Transactions are as follows:
  1. Import LC and Import Collection
    1. Import LC Issuance and amendment
    2. View Import LC
    3. View Import LC Bill
    4. View Import Collection
  2. Export LC, Transfer LC and Export Collection
    1. LC Amendment Acceptance
    2. Initiate Transfer LC / Transferred LC
    3. Amend Transfer LC / Transferred LC Amendment
    4. View Export LC
    5. View Export LC Bill
    6. View Transfer LC
    7. Initiate Export Collection
    8. View Export Collection
  3. Guarantees and Claims
    1. Outward Guarantee Issuance / Initiate Guarantee or Standby LC
    2. View Guarantee / Standby LC – Outward and Inward
    3. Cancellation of Guarantee
    4. Guarantee Amendment / Amend Guarantee or Standby LC
    5. Guarantee Amendment Acceptance
    6. Initiate Inward Claim Guarantee Lodgement
    7. View Claim
  4. Shipping Guarantee, Maintenance, Templates, and Save Actions
    1. Initiate Shipping Guarantee
    2. View Shipping Guarantee
    3. Other Party Maintenance
    4. Assignee Maintenance
    5. Template n Drafts – Import LC Initiation
    6. Template n Drafts – BG Initiation
    7. Template n Drafts – Export Collection
    8. Template n Drafts – Shipping Guarantee
  5. Bulk File Upload Templates
    1. Bulk Template – LC Initiation
    2. Bulk Template – Bank Guarantee Template
    3. Bulk Template – Other Party Maintenance
Initiate Bank Guarantee Existing field of governing law has been split into 2 fields viz Governing Law and Sub Division and a new optional fields added for Place of Jurisdiction and HS Code
View Inward and Outward Bank Guarantee New fields viz Governing Law and HS code which were added in Guarantee Issuance will also be visible or displayed in the Inquiry screen of guarantee.
Initiate Inward Guarantee Claim Lodgement New fields are added in the screens as follows:
  • Charges – 71D
  • Total Amount Claim – 33a/b
View Inward and Outward Guarantee Claim New fields viz Charges 71D and Total Amount Claim 33a/b which were added in claim lodgement will also be visible or displayed in the Inquiry screen of Claims.
View Export LC Export LC inquiry screen will display the underlying loan details in ‘Loan Details’ when preshipment loan is availed against an Export LC.
Update, Accept and Settle Import Collection New feature has been introduced in Import collection update, Accept and settle transactions, to enable corporates to avail loan against trust receipt.
A new checkbox will allow the user to indicate whether the loan is required. When selected, the user must provide the relevant information, including:
  • Trust Receipt Number
  • Trust Receipt Date
  • Warehouse Receipt Applicability—Yes or No – If selected, then ‘Due Date’ for the ware house receipt should be provided.
Changes in Bulk File Template for Beneficairy Maintenance New address fields of Unstructured address and structured address are added in following bulk file templates.
  • Other Party Maintenance
  • Letter of Credit Issuance
  • Bank Guarantee Issuance
Export Collection Initiation, Modify and Inquiry New field of Settlement account has been introduced in the screen to allow corporate users to input the desired settlement account to receive the collection proceeds. User can modify or edit the account as well. The account can also be queried in view screen.

New fields to capture Invoice data is introduced while initiating export collection transaction as invoice is the main underlying document of an export trade arrangement. User should be able to capture multiple records of invoices. While modifying the transaction, user will be able to only view the invoice data. Inquiry screen will also list the captured invoice data.

Allow input of Preferred Exchange Rate New feature was added to enable corporate users to input preferred exchange rate while providing collateral and charges. All the transactions where collateral and charges are available will support input of preferred rate and deal reference number.
Structured/Unstructured Address As a regulatory compliance all the address fields are updated to display Structured/Hybrid type of address on the inquiry screens. The fields applicable for Structured/Hybrid and unstructured will now be supported in the inquiry screens. Structured/Hybrid address will be displayed if the same is maintained for any party in the host system.

The Structured/unstructured and hybrid data fields are as follows-

  1. Department. – Structured/Hybrid
  2. Sub Department – Structured/Hybrid
  3. Address Line 1 – Hybrid/Unstructured
  4. Address Line 2 – Hybrid/Unstructured
  5. Address Line 3 – Unstructured
  6. Building Name – Structured/Hybrid
  7. Building Number – Structured/Hybrid
  8. Floor -– Structured/Hybrid
  9. Room – Structured/Hybrid
  10. Street Name – Structured/Hybrid
  11. Town Location Name – Structured/Hybrid
  12. Post Box – Structured/Hybrid
  13. Postal Code – Structured/Hybrid
  14. District Name – Structured/Hybrid
  15. Country Subdivision – Structured/Hybrid
  16. Country – Structured/Hybrid/Unstructured
  17. City – Structured/Hybrid

The change is now incorporated for all the transaction screens.
Import Collection Acceptance Islamic A new transaction of Import Collection Acceptance has been introduced. This transaction allows users to accept the received import collection documents so that the same can be processed further by the bank. The transaction enables users to:
  • Provide preferable settlement account details
  • Apply for a loan if required
  • Select preferred exchange rate or forward contract
Import LC Issuance Islamic A new field, Transport Mode, is introduced in the existing Import Letter of Credit Issuance transaction screen. This field has been added in the Document and Conditions tab. When the selected transport mode is Sea or Air, a message is displayed if no documents are selected for the document type Transport.
Import LC Amendment Islamic A new field, Transport Mode, is introduced in the existing Import Letter of Credit Amendment transaction screen. This field has been added in the Document and Conditions tab. When the selected transport mode is Sea or Air, a message is displayed if no documents are selected for the document type Transport.
Structured/Unstructured Address As part of regulatory compliance, all address fields have been updated to display Structured/Hybrid types of addresses on inquiry screens. Fields applicable for Structured/Hybrid and Unstructured types are now supported. Structured/Hybrid address will be displayed if maintained for any party in the host system. The Structured/Hybrid/Unstructured fields are as follows:
  • Department. – Structured/Hybrid
  • Sub Department – Structured/Hybrid
  • Address Line 1 – Hybrid/Unstructured
  • Address Line 2 – Hybrid/Unstructured
  • Address Line 3 – Unstructured
  • Building Name – Structured/Hybrid
  • Building Number – Structured/Hybrid
  • Floor -– Structured/Hybrid
  • Room – Structured/Hybrid
  • Street Name – Structured/Hybrid
  • Town Location Name – Structured/Hybrid
  • Post Box – Structured/Hybrid
  • Postal Code – Structured/Hybrid
  • District Name – Structured/Hybrid
  • Country Subdivision – Structured/Hybrid
  • Country – Structured/Hybrid/Unstructured
  • City – Structured/Hybrid
The change has been incorporated for the following inquiry screens:
  • View Import Letter of Credit Islamic
  • View Export Letter of Credit Islamic
  • View Import LC Bill Islamic
  • View Export LC Bill Islamic
  • View Transferred LC Islamic
  • View Import Collection Islamic
  • View Export Collection Islamic
  • View Inward Guarantee/Standby LC Islamic
  • View Outward Guarantee/Standby LC Islamic
  • View Inward Claim Islamic
  • View Outward Claim Islamic
  • View Shipping Guarantee Islamic

Parent topic: Features and Enhancements