Issue Import Letter of Credit

Field/Control

Description

Beneficiary

Search for a Beneficiary

Pressing this image link Party Search page, where you can select the Beneficiary for the instrument from a list of non-bank parties. After you choose a party from the Party Search page, the transaction page redisplays with the Beneficiary fields loaded with the party's information. To complete each Beneficiary fields, you can either search for a party by pressing the Search for a Beneficiary button, or you can type the entry directly into each field.

Search

Pressing this image link displays the Party Search page, where you can select the Beneficiary for the instrument from a list of non-bank parties. After you choose a party from the Party Search page, the transaction page redisplays with the Beneficiary fields loaded with the party's information. To complete each Beneficiary fields, you can either search for a party by pressing the Search image link, or you can type the entry directly into each field.

If the party you select in the Party Search page has a designated bank, the bank's information is loaded into the Advising Bank area. This bank information can be overridden, if necessary.

Beneficiary Name

The name of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's name directly into this field. This field can contain up to 35 characters and is a required field.

Phone Number

The phone number of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's phone number directly into this field. This field can contain up to 20 characters.

*Address (Line 1)

The first address line of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's address directly into this field. This field can contain up to 35 characters and is a required field.

Address (Line 2)

The second address line of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's address directly into this field. This field can contain up to 35 characters.

Address (Line 3)

The third address line of the Beneficiary for the instrument. This field is used in place of City, State, and Postal Code. This field can contain up to 35 characters.

*City

The city of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's city directly into this field. This field can contain up to 23 characters and is a required field.

Province/State

The province or state of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's province or state directly into this field. This field can contain up to 8 characters.

*Country

The country of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can select the Beneficiary's country from this drop-down list. A country selection is required.

Postal Code

The postal code of the Beneficiary for the instrument. To complete this field, you can either search for a party by pressing the Search image link, or you can type the Beneficiary's postal code directly into this field. This field can contain up to 15 characters.

*Applicant

Search

Pressing this image link displays the Party Search, where you can select the Applicant for the instrument from a list of non-bank parties. After you choose a party from the Party Search page, the transaction page redisplays with the Applicant text box loaded with the party's information in read-only form. An Applicant selection is required.

To change the Applicant information in the text box, press the Search image link again to select a new party.

Search Address

Pressing this Button  displays the Address Search pop up, where you can select the between the Primary Address and the Secondary address of the Buyer.

For selecting a Secondary Address, click on the appropriate  radio button in the first column of the Table and press the ‘Selected Address’ button.

Applicant's Reference Number

Your reference number for the instrument. This field can contain up to 30 characters.

Advising Bank

Search

Pressing this image link displays the Party Search, where you can select the Advising Bank for the instrument from a list of bank parties. After you choose a party from the Party Search page, the transaction page redisplays with the Advising Bank text box loaded with the party's information in read-only form.

If the party you select in the Beneficiary area has a designated bank, the bank's information is loaded into the Advising Bank area. This bank information can be changed, if necessary, by changing the Advising Bank information here.

To change the Advising Bank information, press Erase Image Link. You can then press the Search image link again to select a new party.

*Expiry Date

The date that the instrument expires. Enter date in dd/mm/yyy format or mm/dd/yyyy as per user requirements.

When you manually enter or upload PO details in this transaction, the expiry date is recalculated considering the latest shipment date(s) of the PO details and the number of days you enter in the Documents to be presented within field. If the documents to be presented within field is left blank upon verify, the system will calculate the difference between the Expiry Date and Latest Shipment Date to determine the actual Presentation Days.

*Currency

The currency for the instrument. To enter the currency, select one from this drop-down list. A currency selection is required.

*Amount

The amount of the transaction. This field can contain up to 22 characters and is a required field.

When you manually enter or upload PO details in this transaction, the transaction amount is recalculated as the sum of all PO Line Item amounts for all shipments. When the PO Amount is blank; then, it is considered zero in the calculation of the transaction Amount.

Expiry Place

This field will be a drop-down list of values. The values will be SWIFT complaint and can hold up to 29 characters. Values will be:

At our counters (Issuing Bank)

At confirming bank’s counters (Confirming Bank)

In Beneficiary’s country (Beneficiary)

Other

When the "Other Conditions" link is selected, a pop-up window will automatically appear for the user to enter their info. Users can bring up the pop-up any time by clicking the link.

This field will only be displayed on the transaction for the corporate customer to enter, when the bank defined default instrument template has no data entered in the place of the expiry field.

Amount Tolerance

The amount tolerance of the transaction. This is the percentage amount that the instrument vary from the entered amount. You can type up to 3 characters into each percentage field (+ and -).

*Payment Terms

Indicates when presentations will be payable under the terms of the instrument. To specify, select one of the following options:

Sight - Indicates that payment is due immediately upon receipt.

____ days after ____ - Indicates that payment is due a specific number of days after a specific tenor type (Shipment Date, Bill of Lading Date, Invoice Date, and so on). To specify this tenor option, enter a number of days (up to 3 characters) in the first text box and select a tenor type from the drop-down list.

Other - When "Other Conditions" link is selected, a pop-up window will automatically appear foruser to enter their info. Users can bring up the pop-up any time by clicking the link.

*Bank Charges

Indicates the distribution of bank charges for the instrument. To specify, select one of the following options:

All our account - Indicates that the Applicant will pay all of the Issuing Bank's, Advising Bank's, and any other bank's charges.

All bank charges other than those of the Issuing Bank are for Beneficiary's account - Indicates that the Applicant will pay the issuing Bank's charges; any other bank's charges will be borne by the Beneficiary.

Other - When "Other Conditions" link is selected, a pop-up window will automatically appear for user to enter their info. Users can bring up the pop-up any time by clicking the link.

For example, there might be a combination of charge distributions, such as the opening fee charged to the Applicant and amendment and all other fees charged to the Beneficiary. If you select this option, be sure to enter the details into the Other Conditions section.

For ____% of the invoice value*

The difference between the amount of the invoice and the amount of the actual presentation. To specify, enter a percentage in the text box. This field can contain up to 3 characters and is a required field.

Documents Required

The Documents Required section of the Issue Import Letter of Credit page contains information about required documents for the Import Letter of Credit issue transaction. Examples of documents you can select in this section include Commercial Invoice, Packing List, Certificate of Origin, and Insurance Policy/Certificate. The fields and controls contained in the Documents Required section are described below.

[document selections]

The documents required for the instrument. For each required document, select the checkbox for the document, specify the number of originals and copies, and enter text for the document. To enter text, you can either type directly into the text area, or Select a phrase from the drop-down list to the text area. Each text area can contain up to 1000 characters.

For the Insurance Policy / Certificate document, you must also enter a percentage over invoice endorsement value, which can contain up to 5 characters, including the decimal character (3 characters to the left of the decimal character and 1 character to the right of the decimal character). In addition, you must select a coverage type (for example, Institute Cargo Clause (Air) or Institute Cargo Clause (Cargo / Air Cargo).

There is also space for two freely definable documents. For these, you must enter a Document Name (up to 30 characters), in addition to the number of originals and copies and the document text.

If there are additional required documents, select the Additional Documents checkbox and specify the number of originals and copies in the text area, along with the document text. This text area can contain up to 1000 characters.

Note: You can enter text for multiple additional documents in the text area.

You can also further add documents by clicking ‘Add Documents’ button which will add additional row of documents at the bottom of the page.

Transport Document(s) and Shipment

The Transport Document and Shipment section of the Issue Import Letter of Credit page contains two sub sections - transport document and shipment. The Transport Document and Shipment section of the Issue Import Letter of Credit page provides the user with the ability to specify multiple shipment details as well as purchase order details for the Import Letter of Credit issue transaction.

The fields and controls contained in the Shipment section are described below.

Add Shipment

Pressing this button the first time causes the Transport Document and Shipment section, and its fields and controls, of the import Letter of Credit issue page to be replicated in multiple tabbed sections. Each tabbed section is numbered. When adding the second shipment, the details for the first shipment are displayed in the first tabbed section and the details for subsequent shipments on the second and subsequent tabbed sections. The tabbed sections are added one at a time, when the user presses the Add Shipment button. Transport Document and Shipment details are copied from the current tabbed section into each new tabbed section; the user must modify the variable details. Transport Document/Shipment Description, latest shipment date, goods description, and purchase orders are not copied from one tabbed section to another. The Additional Transport Document text field is not displayed when there are multiple shipments. There is no limit to the number of shipments that can be specified in the multiple shipment schedule of the LC.

Delete Shipment

Pressing this button causes the active Transport Document and Shipment tab section to be deleted. When there are only 2 Transport Document and Shipment tabbed sections, both tabs disappear when the active tabbed section is deleted. The information entered on the inactive tabbed section is then displayed in the Transport Document and Shipment section of the import Letter of Credit issue page.

Transport Document/Shipment Description

A unique text description of each transport document and shipment to be covered by the import LC is required when you want to specify multiple transport document(s) and/or shipment(s) in the import LC.

Document Type

The type of transport document required by the instrument. For example, Multi-Modal Transport Document or Port to Port B/L. To specify the document type, make a selection from the drop-down list.

Originals

The number of originals for the transport document. To specify, make a selection from the drop-down list. For example 1, 1/3 or 2.

Copies

The number of copies for the transport document. To specify, enter the number of copies into the text box. This field can contain up to 3 characters.

Description

Consignment

The party to whom the goods are consigned. To specify, select one of the option buttons and make a selection from the drop-down list:

Consigned to the order of - The shipment is consigned to the order of the Applicant or Issuing Bank, or is Shipper and Blank Endorsed.

Consigned to - The shipment is consigned directly to the Applicant or Issuing Bank.

Marked Freight

Indicates whether the freight is being paid by the Beneficiary (Prepaid) or by the Applicant (Collect). To specify, select one of the option buttons.

Notify Party

The party to be notified when the goods arrive at their destination. To specify party information, you can either type information directly into the text boxes or press Search image link  to display the Party Search page. After you choose a party from the Party Search page, the transaction page redisplays with the Notify Party text fields loaded with the selected party's information.

Other Consignee Party

If you selected Other for either the Consigned to the Order of or Consigned to option, then you must specify the other party's name and address. To specify, you can either type information directly into the text boxes or press Search image link to display the Party Search page. After you choose a party from the Party Search page, the transaction page redisplays with the Other Consignee Party text fields loaded with the selected party's information.

[transport document text]

The transport document text for the instrument. To enter text, you can either type directly into the text area, or add a phrase from the drop-down list to the text area. The text area can contain up to 500 characters.

Additional Transport Documents

Additional transport documents for the instrument. To specify, select the Additional Transport Documents checkbox and enter the number of originals and copies in the text area, along with the document text. This text area can contain up to 1000 characters.

Note: You can enter text for multiple additional documents in the text area.

The Shipment section of the Transport Document and Shipment section contains shipment information for the Import Letter of Credit issue transaction. The fields and controls contained in the Shipment section are described below.

Transhipment

Transhipment Allowed:If this radio button is selected, transhipment is allowed for this instrument. For example, if the goods can be shipped part of the way by ship and the remaining distance by truck.

Transhipment Not Allowed: If this radio button is selected, transhipment is not allowed/ Prohibited.

Transhipment Conditional: If Transhipment Conditional is selected, the Other Conditions link will open automatically to allow the user to enter the conditions of transhipment.

Partial shipment

Partial Shipments Allowed: If this radio button is selected, partial shipments are allowed for this instrument, For Example: When the quantity of the goods stated can be shipped in two or more different consignments

Partial Shipments not Allowed: If this radio button is selected, partial shipments are not allowed /Prohibited.

Partial Shipments Conditional: If Partial Shipment Conditional is selected, the Other Conditions link will open automatically to allow the user to enter the conditions of partial shipment

Earliest Shipment Date

The earliest date that the goods can be shipped for the instrument. Enter date in mm/dd/yyyy format.

Latest Shipment Date

The latest date that the goods can be shipped for the instrument.  Enter date in mm/dd/yyyy format.

When the import letter of credit transaction contains multiple shipments, the Latest Shipment Date for each Shipment is derived as the latest shipment date (when available) for all the PO Line Items associated with the specific shipment.

Shipping Term (Incoterm)

The shipping term, or Incoterm, that describes what is included in the total cost of the transaction goods. For example, Cost and Freight or Cost Insurance Freight. To specify a shipping term, make a selection from this drop-down list.

Shipping Term Location

The location where the purchaser of the transaction goods will take responsibility for them. For example, the port of discharge for the goods. To specify, enter a location in the text box. This field can contain up to 140 characters.

Port of Loading / Place of Taking Charge / Dispatch

The point of origination for the goods. To specify, enter a location in the text box. This field can contain up to 140 characters.

Port of Discharge / Final Destination

The point of discharge for the transaction goods. To specify, enter a location in the text box. This field can contain up to 140 characters.

Documents to be presented within _____ days of shipment, but within the validity of the credit

Enter presentation details if not after shipment

(e.g. after invoice):

The number of days after shipment that documents must be presented. To specify, enter the number of days in the text box. This field can contain up to 3 characters

If the presentation field is left blank upon verify, the system will calculate the difference between the Expiry Date and Latest Shipment Date to determine the actual Presentation Days. Once the verification is complete, the read-only page will be returned to you with the Presentation Days field populated with the calculated data.

When the import LC transaction contains a multiple shipment schedule, the presentation days will apply to all shipments.

If the date is not a shipment date, for example, it is an invoice date, then the details must be given in the text box.

*Goods Description

The description of the goods being shipped. To enter text, you can either type directly into the text area, or add a phrase from the drop-down list to the text area. The text area can contain up to 6500 characters.

Text entered in this text area appears in a fixed-space font (for example, "goods description text") so that the goods description can be formatted into columns.

The Trade Services system accommodates purchase orders for an import letter of credit transaction with a single shipment or with a multiple shipment schedule. The user is presented with different button options for purchase orders, depending on the corporate organization’s settings for processing purchase orders, as specified in the PO Definition. The different options are:

Upload Only - the user only works with purchase orders that are added to the system via file upload.

Manual Only - the user only works with purchase orders that are manually entered.

Both Upload and Manual - the user works with both uploaded and manually entered purchase orders.

Add Uploaded Purchase Order(s) – the user works with structured Purchase Orders; enables user to attach unassigned, structured Purchase Orders that have been uploaded into the system to the Import Letter of Credit Instrument.

View Attached Purchase Order(s) – the user works with structured Purchase Orders; enables user to view any structured Purchase Orders that have been uploaded into the system and attached to the Import Letter of Credit Instrument in a separate window.

Remove Attached Purchase Order(s) - the user works with structured Purchase Orders; enables user to remove structured Purchase Orders that have been uploaded into the system and attached to the Import Letter of Credit Instrument transaction. User may select one or more purchase orders to remove via a separate window.

Uploaded purchase orders that automatically create an import letter of credit transaction are added to the first shipment of the import letter of credit transaction. When purchase orders are uploaded or manually added to an Import Letter of Credit Issue transaction, the amount, expiry date and latest shipment date fields are derived using the details of the purchase order(s). The user should validate that the data in these fields is correct.

The following sections display the different purchase order options.

PO Line Item(s)

The purchase order line items assigned to the transaction. This read-only text area appears only if your organization uses the system's purchase orders functionality and there are one or more PO line items are assigned to this transaction.

The display of the PO Line Item(s) text box appears only on one line in column format, with the line limited to 65 characters in length. Within this columnar format the inclusion of multi-line PO Line Item(s) text field is supported. The contents PO Text field, if any, appears on the line below the PO Line Item to which it applies. When the checkbox in the PO Definition page of the Reference Data area is selected, the system automatically wraps the contents of the PO Text field to a new line at the 65th character

To assign additional PO line items to the transaction, press Add PO Line Item(s). To remove PO line items currently assigned to the transaction, press Remove PO Line Item(s).

Add PO Line Item(s)

This button is displayed below the PO Line Items text field for the user that processes uploaded PO Line Item(s). The user presses this button when he wants to view all unassigned purchase orders and in order to select and add more unassigned, uploaded purchase orders.

Add PO Line Item(s) Manually

This button is displayed for the user in the corporate organization that can manually enter PO Line Item(s). When the user presses the Add PO Line Item(s) Manually button, the PO Details page is displayed when there is only one PO Definition. When there are multiple PO Definitions; then, pressing this button causes the Select a PO Definition page to be displayed. The user manually enters PO Line Item(s) on the PO Details page. Once purchase orders have been entered manually on the PO Details page, they are displayed in the PO Line Items text field that is displayed below the Goods Description text field.

Edit PO Line Item(s)

This button is displayed below the PO Line Items text field that displays the purchase orders that the user manually entered. When the user presses this button, they are able to edit the manually entered PO line item(s).

Remove PO Line Item(s)

Pressing this button displays the Remove PO Line Item(s) page, which allows you to remove one or more PO line items currently assigned to the transaction. This button displays only if the PO Line Item(s) area displays.

Other Conditions

The Other Conditions section of the Issue Import Letter of Credit page contains information about other terms, conditions, or details for the Import Letter of Credit issue transaction. The fields and controls contained in the Other Conditions section are described below.

Confirmation

Indicates the rules for Advising Bank confirmation. To specify, select one of the following radio buttons:

Advising Bank not required to add confirmation (This is the default setting.)

Advising Bank to add their confirmation

Advising Bank may add their confirmation subject to Beneficiary's approval

Transferable

If this checkbox is selected, part or all of the instrument may be transferred to another Beneficiary. For example, a portion of the instrument can be re-issued in favour of the goods manufacturer.

Revolve

If this checkbox is selected, the amounts under this instrument are available on a revolving basis. If you select this checkbox, make sure that you enter the revolving terms in the Additional Conditions field.

ICC Applicable Rules

This checkbox indicates whether this instrument is governed by one the ICC Publications or not.

Version

This field lists all the valid ICC Applicable Rules for this instrument.

Details

If the ICC Publication Version “Other” is selected, then this field will be enabled.

[Additional Conditions text]

The additional conditions text for the transaction. To enter text, you can either type directly into the text area, or add a phrase from the drop-down list to the text area. The text area can contain up to 5000 characters.

Instructions to Bank

The Instructions to Bank section of the Issue Import Letter of Credit page contains instructions to your bank for the Import Letter of Credit issue transaction, such as settlement and commissions charges and account numbers. The fields and controls contained in the Instructions to Bank section are described below.

*Issue instrument in

The language in which the instrument will be issued. To specify, select a language from the drop-down list. This field defaults to English.

[Additional instructions text]

The special instructions text for the transaction. To enter text, you can either type directly into the text area, or add a phrase from the drop-down list to the text area. The text area can contain up to 1000 characters.

Settlement Instructions

Branch Code

The bank branch code for settlement. To specify, enter a bank code into the text box. This field can contain up to 30 characters.

Debit - Our Account Number

The debit account number for settlement. To specify, enter an account number into the text box. This field can contain up to 30 characters.

Debit - Foreign Currency Account Number

The foreign currency debit account number for settlement. To specify, enter an account number into the text box. This field can contain up to 30 characters.

Currency of Account

The currency of the settlement foreign currency account. To specify, make a selection from the drop-down list.

Commissions & Charges

Debit - Our Account Number

The debit account number for commissions and charges. To specify, enter an account number into the text box. This field can contain up to 30 characters.

Debit - Foreign Currency Account Number

The foreign currency debit account number for commissions and charges. To specify, enter an account number into the text box. This field can contain up to 30 characters.

Currency of Account

The currency of the commissions and charges foreign currency account. To specify, make a selection from the drop-down list.

Forward Exchange Contract (FEC)

Covered by FEC Number

The forward exchange contract (FEC) covering the settlement, if the instrument is in a currency other than the Applicant's base currency. To specify, enter an FEC number into the text box. This field can contain up to 14 characters.

Amount of FEC

The amount of the FEC. To specify, enter the amount into the text box. This field can contain up to 19 characters.

Rate of FEC

The rate of the FEC. To specify, enter the rate into the text box. This field can contain up to 14 characters, including a decimal character. The format for the rate you enter is 12345.12345678 (5 characters to the left of the decimal and 8 characters to the right of the decimal).

Maturity Date of FEC

The maturity date for the forward exchange contract. To enter the maturity date, select a day, month, and year from the appropriate drop-down lists.

Financing Instructions

Finance drawing for a period of ____ days in ____ drawing at our cost

The finance drawing period and type for the instrument, if financing has been arranged for the Applicant. To specify, enter a number of days into the text box (up to 3 characters) and make a selection in the drop-down list.

[additional text for Settlement or Commissions & Charges]

The additional text describing settlement or commissions and charges for the instrument. To enter text, you can either type directly into the text area, or add a phrase from the drop-down list to the text area. The text area can contain up to 1000 characters.

Import Documentary LC General Terms and Conditions

The Import Documentary LC General Terms and Conditions section contains up to 1000 characters defined by the bank group that must be accepted before the instrument can be Authorized. this field will be unavailable if turned off at the Bank Group level.

Internal Instructions

The Internal Instructions section of the Issue Import Letter of Credit page contains instructions internal to your organization that will not be sent to the bank with the Import Letter of Credit issue transaction.

The Internal Instructions section contains a text area for internal use text for the instrument. To enter the internal instructions text, type directly into the text area. This field can contain up to 1000 characters.

LC Application Form

The LC Application Form link on the Import Issue LC page appears only after the transaction has been verified. When you click on this link, an Adobe Acrobat PDF file is generated of the transaction's collection schedule and is displayed in a new browser window. You can then print the PDF file or save it to your local drive.

Note: This feature requires that Adobe Acrobat Reader is installed on your computer. If you do not have Adobe Acrobat installed, click the icon below to download the free software from Adobe:

PNC Bank Discount Charges

Indicates the distribution of PNC Bank discount charges for the instrument. To specify, select one of the following options:

Not Applicable:  Indicated that there are no discount charges.

Beneficiary's Account: Indicates the Beneficiary will pay discount charges.

Applicant's Account: Indicates the Applicant will pay discount charges.

PNC Bank Acceptance Charges

Indicates the distribution of PNC Bank acceptance charges for the instrument. To specify, select one of the following options:

Not Applicable:  Indicated that there are no acceptance charges.

Beneficiary's Account: Indicates the Beneficiary will pay acceptance charges.

Applicant's Account: Indicates the Applicant will pay acceptance charges.