Apply for an Islamic Import Letter of Credit – iTrade Print

Overview

This guide provides step-by-step instructions for creating and submitting an Islamic Import Letter of Credit (LC) through iTrade.

An Islamic Import Letter of Credit facilitates trade transactions in accordance with Islamic financing principles and supports financing structures such as Murabaha and Wakalah Murabaha.

Prerequisite: Users must have the appropriate permissions to create Islamic Import Letter of Credit requests.

Step 1: Access Import Letter of Credit Services

1. From the iTrade Dashboard, select Trade Services.
2. Click Import Letter of Credit.

This will open the Import Letter of Credit Dashboard.

Step 2: Create a New Islamic Import Letter of Credit

1. Click Request Islamic Letter of Credit.

The Islamic Import Letter of Credit application form will open.

Step 3: Complete the General Details

Enter all mandatory fields marked with a red asterisk (*).

Navigation Tips

You can move through the application by:

• Clicking Next or Previous
• Selecting a section directly from the navigation panel on the left side of the screen

Key General Details

Request for Draft

Enable this option if you want the Letter of Credit wording reviewed before issuance.

The transaction progresses through the following statuses:

• Wording Under Review
• Final Wording
• New (after issuance)

Back-to-Back Letter of Credit

Enable this option if the Islamic Import Letter of Credit is linked to an existing Export Letter of Credit.

You must select the related Export Letter of Credit using the Browse option.

Mode of Transmission

Select one of the following options:

• SWIFT
• Courier / Mail
• Other

If Other is selected, additional details must be provided.

Create From

You can create the Letter of Credit using:

• Template
• Existing LC
• Upload

Type of Islamic LC

Select the applicable Islamic financing structure:

Expiry Information

Provide:

• Expiry Date
• Place of Expiry

The expiry date must be later than the application date.

Letter of Credit Features

Configure the required LC characteristics, including:

• Irrevocable
• Non-Transferable
• Confirmation Instructions

Available confirmation options include:

• Confirm
• May Add
• Without Confirmation

References

Provide:

• Beneficiary Reference
• Customer Reference

Step 4: Complete Applicant and Beneficiary Details

Enter or review the applicant and beneficiary information.

Applicant

The Applicant information is automatically populated from the company profile and is generally non-editable.

Alternate Applicant

If applying on behalf of another entity, complete:

• Name
• Address
• Country

Beneficiary

Enter or select:

• Beneficiary Name
• Beneficiary Address
• Beneficiary Country

You may also create and save a new beneficiary for future use.

Step 5: Complete Bank Details

Issuing Bank

The default Issuing Bank is Commercial Bank of Dubai (CBD).

Beneficiary Bank

Provide:

• SWIFT Code
• Bank Name
• Bank Address

The selected bank will be responsible for advising the Letter of Credit to the beneficiary.

Requested Confirmation Party

Select:

• Beneficiary Bank
• Other

If Other is selected, additional bank information must be provided.

Step 6: Complete Amount and Charge Details

Letter of Credit Amount

Provide:

• LC Currency
• LC Amount

Variation in Drawing

Specify any permitted:

• Excess Drawing Percentage (+)
• Shortfall Drawing Percentage (-)

Issuing Bank Charges

Select who will bear the charges:

• Applicant
• Beneficiary
• Shared

If shared, define the percentage allocation for each party.

Additional Amount Covered

Specify any additional amounts covered under the credit, such as:

• Insurance
• Freight
• Interest
• Other approved charges

Step 7: Complete Payment Details

Configure the payment structure of the Islamic Letter of Credit.

Credit Available By

Select one of the following:

• Payment

• Acceptance

• Negotiation 

• Deferred Payment

• Mixed Payment

Payment Draft Terms

Depending on the payment method selected, additional options may be available:

• Sight
• Fixed Maturity Date
• Calculated Maturity Date

Tenor Information

Where applicable, define:

• Value in Number
• Frequency
• From / After
• Tenor Start Event

Available tenor start events include:

Drawee Details

Select the applicable party:

• Issuing Bank
• Confirming Bank
• Beneficiary Bank
• Negotiating Bank
• Other

Step 8: Complete Shipment Details

Enter all shipment-related information required for the Islamic Import Letter of Credit.

Step 9: Complete Narrative Details

Provide any narrative information required for the transaction.

Step 10: Complete Instructions to Bank

Enter any additional instructions that should be provided to the bank when processing the Islamic Import Letter of Credit.

Documentation to be non-legalize

Step 11: Upload Supporting Documents

Upload any supporting documents required for the application.

Attachment Requirements

• Maximum of 5 files
• Maximum file size: 5 MB per file

Supported File Types

Examples include:

• Proforma Invoice
• Specimen Signature
• Supporting Trade Documents

Step 12: Review the Application

Open the Preview section and review all details entered.

Verify:

If changes are required, return to the relevant section and update the information.

Step 13: Submit the Request

1. Review all information carefully.
2. Click Submit.

If the request is submitted successfully, an acknowledgment message will be displayed.