To apply for a Letter of Credit (LC) on the iBusiness Trade Module, follow these steps:
Step 1: To locate the Letter of Credit (LC) Application Form on iBusiness Trade Module
- Click on Trade & Guarantees >> Import - Transact >> Initiate LC
Step 2: Tips and Guidance on Filling the LC Application
- Users have the option to click "Expand All" to expand all the sections
- Alternatively, you can click on the individual section headers to expand the particular sections
- You must input all the required fields in each individual section to complete the LC application
- Once all the required fields are filled in the user can:
- Initiate - this will navigate the user to the LC submission screen
- Save as Draft - save the entered details as a draft which you can come back to later
- Save as Template - save the entered details into a template which can be re-used at a later stage
- Clear - clear all the details entered in the application
Step 3: Filling out the "Main" Section
- Please follow the below guidance to fill out the "Main" Section:
| Field Name | Remarks |
| Customer Account | Select the Account Number from the dropdown values – under which A/C number, the LC needs to be issued |
| Date of Application | System generated value – Non Editable field |
| LC Amount | Select the LC currency & input the amount |
| Customer Ref. No. | Free text field – to capture client’s internal reference number, if any |
| Amount in Words | System automatically displays the amount in words based on the amount entered |
| Date of Expiry | LC Expiry date – Calendar Selection |
| Tolerance | Input the (-) tolerance (+) tolerance, if any |
| Product | Select the LC Type from the drop down values – Sight LC, Time LC, Mixed Payment LC. In case of Mixed Payment LC, input the mixed payment details (new field will be available, in case Mixed Payment Type is selected. |
| Total Exposure | System generated value – Non Editable field |
| Applicant | Applicant details will be auto populated. Non Editable field. In case if the LC needs to be opened with Different party as applicant, such details should be entered in Additional Conditions field. |
| Beneficiary | Input the Beneficiary Name & Address in the respective fields |
| Other Details | |
| Transferrable | Choose "Yes" or "No" |
| Revolving | Choose "Yes" or "No" |
| Form of LC | Choose from the dropdown values: "Irrevocable", "Standby" |
| Template Access Type | Choose from the dropdown values "Public" or "Private": Public – the template saved will be available for all the users (within the company) to use. Private – the template saved will be available only for the user who has saved the template |
- By clicking "Next" you will expand the next section “Shipment"
Step 4: Filling out the "Shipment" Section
- Please follow the below guidance to fill out the "Shipment" Section:
| Field Name | Remarks |
| Partial Shipment | Choose from dropdown values "Allowed" or "Not Allowed" |
| Transhipment | Choose from dropdown values "Allowed" or "Not Allowed" |
| Port of Loading | Input the shipment loading port details |
| Port of Discharge | Input the destination port details |
| Shipment From | Input the "Shipment From" details (in case of local delivery / truck shipment / Multimodal shipment) |
| Shipment To | Input the shipment To details (in case of local delivery / truck shipment / Multimodal shipment) |
| Shipment Period | Input the shipment period details |
| Shipment Mode | Choose the shipment mode |
| Latest Shipment Date | Select the latest shipment date (not later than the Expiry Date) (Either of the fields “Latest Shipment date” or “Shipment Period” can be entered). |
| Incoterm | Choose from dropdown values (FOB, CIF etc) |
| Description of Goods | Input the Goods Description |
- By clicking "Next" you will expand the next section “Documents"
Step 5: Filling out the "Documents" Section
- Please follow the below guidance to fill out the "Documents" Section:
| Field Name | Remarks |
| Clause |
|
| Clause Description | Based on the above clause list selection, Default clauses will be available. User will have an option to edit the clauses using “Edit Description” option. Click on “Done” once edit is complete |
| Additional Condition | Enter additional conditions, those are application to this LC |
- By clicking "Next" you will expand the next section “Instructions"
Step 6: Filling out the "Instructions" Section
- Please follow the below guidance to fill out the "Instructions" Section:
| Field Name | Remarks |
| Advising Bank | If the Swift BIC ID is available, then user can input the Beneficiary Bank SWIFT BIC Code in Swift ID field. Else, click on search option, and search using the Bank Name. Choose the bank from the search result and click on Select Bank option. |
| Legalization Instructions | Choose "Yes" or "No" |
| Confirmation Instructions |
|
- By clicking "Next" you will expand the next section “Other Instructions"
Step 7: Filling out the "Other Instructions" Section
- Please follow the below guidance to fill out the "Other Instructions" Section:
| Field Name | Remarks |
| Period of Presentation | Input the number of days, within which Beneficiary needs to submit the documents for negotiation |
| Charges | Choose from the dropdown values. Choose the value “Others” to enter different charges instructions |
| Charge Account | Select the account number from which the LC charges needs to be recovered |
| Insurance Details | Input the Insurance Policy Number & Insurance Company Name (in case of Insurance is covered by LC applicant) |
| Attach Documents | If required, click on Browse & attach documents (such as Proforma Invoice, Specimen Signature page etc) |
| Terms & Conditions | Click on the check box to Accept Terms and Conditions |
| Action: | |
| Initiate | This will navigate to the next screen to proceed with LC initiation. Once Initiated, the transaction will move to approver queue for approval. Upon successful authorization, transaction will be submitted to bank for processing. Approvers can access the transactions pending for their approval using the menu “Queue" >> "Pending your Authorization” |
| Save as Draft |
|
| Save as Template |
|
| Clear | Clear all the details entered |
