Note: User permissions should be in place to initiate an Islamic Import Letter of Credit. If not, contact your Corporate Administrator.
Step 1: Click on Trade Services > Import Letter of Credit
- From iTrade Dashboard, select Trade Services from the main Menu, and click on Import Letter of Credit
Step 2: Click on Request Islamic Letter of Credit
Step 3: Input transaction details in each section of the Islamic Import Letter of Credit online application form. Fill out all the mandatory fields marked with a red asterisk.
Step 4: Fill in the General Details
Tips: Click on Next or Previous to navigate to the next or previous section or you can navigate to any section from the left pane.
| Request for Draft | Enable the toggle to request for a draft LC. The transaction remains in status ‘Wording Under Review’ before an agreement is reached then it is moved to status ‘Final Wording.’ Once the LC is issued, the status changes to New. |
| Is this a back-to-back LC? | Enable the toggle to request for a Back-to-Back LC. Upon marking the LC as Back-to-Back, you must select an existing Export Letter of Credit clicking on the Browse option. |
| Mode of Transmission | Select from the available options – SWIFT, Courier/Mail, Other. If Other is selected, enter more details in the Other field. |
| Create From | You can initiate a Letter of Credit from an existing Letter of Credit. Choose from the options – Template, Existing LC, Upload. |
| Template | Click on this option to create a new LC using an existing template. |
| Existing LC | Upon selection of this option a list of existing LCs is displayed. Select the applicable LC on which you wish to base the new LC. |
| Upload | Upon selection of this option, you must upload an LC. |
| Type of Islamic LC | Select the type of Islamic LC from the options – Murabaha, Wakalah Murabaha, Cash (No Financing) |
| Expiry Date | Date on or before which the documents for the LC must be presented. It must be a valid date after the application date. |
| Place of Expiry | Place of expiry for the LC. The default value is In Beneficiary's Country. |
| Feature of LC | This field defines the characteristics of Letter of Credit |
| Irrevocable | By default checked, not modifiable as per UCP guidelines. |
| Non-Transferable | Place a check mark here to make this LC nontransferable. |
| Confirmation Instructions | Select this option when beneficiary wishes to add an additional confirmation party for the LC |
| Confirm | The Beneficiary Bank will be asked to confirm. |
| May Add | The Beneficiary Bank and the beneficiary can choose whether to confirm. |
| Without | No confirmation is required. |
| Applicable Rules | Select the rules applicable to the Letter of Credit |
| Beneficiary Reference | Enter reference information for the beneficiary, if required. |
| Customer Reference | Enter the name for use within your company, for the LC you are creating. |
Step 5: Fill in the Applicant and Beneficiary Details
| Applicant | Name and address of the applicant raising the application. This is a non-editable field. |
| Name | Name of the applicant. Defaults to the name of your company. |
| Address | Address of the applicant. Defaults to the address of your company. |
| Alternate Applicant | Name and address of the alternate applicant. The details in this section enables to enter an alternative applicant for the Letter of Credit if you desire to apply on behalf of another person or entity. |
| Name | Name of the alternative applicant. |
| Address | Address of the alternative applicant. |
| Country | Name of the alternative applicant's country |
| Beneficiary | Enter the Name and address of the beneficiary. Click on the 'Name' field drop down to select the associated beneficiary. You may also add an adhoc and save it for future use. Enter the new Name and Address details of the beneficiary and slide "Save the Beneficiary" button and enter the abbreviated name for the new beneficiary to be saved for the applicant. |
| Name | Name of the beneficiary. Click on the drop down for the list of beneficiaries or enter a new beneficiary name. |
| Address | Address of the beneficiary. If the beneficiary name is selected from the dropdown this field gets auto-filled, else you must enter the address for the new beneficiary. |
| Beneficiary Country | Name of the beneficiary's country. Click on the drop down for the list of countries to select from. |
Step 6: Fill in the Bank Details
| Issuing Bank | Bank to which you want to request your Letter of Credit. |
| Bank Name | This is a non-editable field and the default value is Commercial Bank of Dubai. |
| Issuer’s Reference | The reference under which the transaction should be recorded, relevant to CBD. |
| Beneficiary Bank | Bank to which the Letter of Credit will be sent to by the Issuing Bank and which will be responsible for notifying the Letter of Credit terms to the beneficiary. |
| SWIFT Code | Select the applicable Swift Code that identifies the Advising bank. |
| Bank Name and Address | Name of the bank. Upon selection of Swift Code this field is auto filled with the bank counterparties that your company maintains |
| Requested Confirmation Party | The user may choose any one of the following parties to confirm the transaction – Other, Beneficiary Bank. If Other is selected, the fields below are required. |
| SWIFT Code | Select the applicable Swift Code that identifies the Confirming bank. |
| Bank Name and Address | Name of the bank. Upon selection of Swift Code this field is auto filled with the bank |
Step 7: Fill in the Amount and Charge Details
| LC Amount | Currency and amount of the Letter of Credit |
| LC Currency | Click the drop down to set the currency code |
| LC Amount | Enter the amount of the Letter of Credit |
| Variation in Drawing | Amount by which the amount drawn can exceed or fall short of the amount stated in the LC. |
| Percentage (+) | Percentage of the LC amount for which an excess in drawing is permitted. Maximum of two digits. |
| Percentage (-) | Percentage of the LC amount for which a shortfall in drawing is permitted. Maximum of two digits. |
| Issuing Bank Charges | Specify whether the applicant or beneficiary will bear the issuing bank charges. By default, the Issuing Bank Charges are borne by Applicant. The charges can also be split between applicant and beneficiary. Upon selecting this option, you must also set the percentage charge that applicant and beneficiary will incur. The split percentage for each must be defined in the following two fields - Charges to Applicant (in %) and Charges to Beneficiary (in %) |
| Additional Amount Covered | Any additional amounts available to the beneficiary under the terms of the credit, such as insurance, freight, interest and more. |
Step 8: Fill in the Payment Details
| Credit Available With | Bank authorized to pay, accept or negotiate the credit. |
| Bank | Select the bank from a dropdown list. If you select Beneficiary Bank, Any Bank or Issuing Bank, the Name and address fields are disabled. If you select Other, you must fill in the Name and Address fields. |
Name and Address | Name and Address of the bank. |
Credit Available By | Specify from the options below. |
Payment | The Sight payment option is automatically selected. |
| Acceptance | The Maturity Date and Draft term payment options are available. The Drawee Details field is defaulted to "Issuing Bank". |
| Deferred Payment | The Maturity Date and Draft term payment options are available. |
| Mixed Payment | This option is used when the payment is a mix of the various methods allowed. |
| Payment Draft At | Select the characteristics of the payment or draft that is called for under the LC terms. The available options are: |
| Sight | Available when "Credit available by" is set as either 'Payment’. |
| Fixed Maturity Date | Available when "Credit available by" is set as either 'Acceptance' or 'Deferred Payment’. Below fields appear if you select Fixed Maturity Date. |
| Maturity Date | Enter the maturity date of draft payment. |
| Calculated Maturity Date | Available when "Credit available by" is set as either 'Acceptance' or 'Deferred Payment’. Below fields appear if you select Calculated Maturity Date. |
| Value in Number | Enter the numerical value to compute the calculated maturity date. |
| Frequency | Select the unit from the drop down, for the above mentioned numerical value. The available values are Days, Weeks, Months, Years. |
| From/After | Specify whether the maturity date is to be calculated from the day of the event or on the day after the event expires. |
| Tenor Start | Set the Tenor Start field to apply the defined period to arrive at the payment due date. You can select from the following options: Air Waybill, Arrival of Goods, Bill of Exchange, Bill of Lading, Invoice, Shipment Date, Sight, Arrival and inspection of goods, Other. On selecting Other, it is mandatory to specify the tenor start description in the free format input field. |
| Mixed Payment Details | Available when "Credit available by" is set as 'Mixed Payment’. Provide any additional information for the mixed payment. |
| Drawee Details | Drawee Details automatically gets selected as the party that bears the credit. The Drawee details options gets enabled when either of the options are selected - Payment by Acceptance or Deferred Payment. Select from the options in the dropdown list - Issuing Bank, Confirming Bank, Beneficiary Bank, Negotiating Bank, Other |
Step 9: Fill in the Shipment Details
Step 10: Fill in the Narrative Details
Step 11: Fill in the Instruction to Bank Details
Step 12: Attachments
| File Upload | Upload supporting files either by 'Drag and Drop' method or by 'Browsing' to the file location. You can attach up to 5 the supporting documents of size 5 Mega Byte each. The file types supported are PNG, JPEG, JPG, RTF, CSV, XLS, XLSX, DOCX, TXT, DOC, PDF, GIF, ZIP. Samples of files you can upload are Proforma Invoice, Specimen Signature, etc. |
| Browse | Browse button and Drag and Drop field, which you can optionally use to attach a file from your local hard disk to give additional details pertaining to this Letter of Credit. |
Step 13: Confirm transaction details in the Preview section. For adjustments, navigate to the appropriate section and update the details.
Step 14: Once completed, click on Submit and you will receive an acknowledgment if the request has been successful.