The “Import L/C” business sector (LI) covers all transactions directly connected to the processing of Import L/Cs (like opening L/Cs, amendments, etc). This includes the generation of subordinate contracts such as document sets (BR), etc.

For each document presentation under an Import L/C, a subordinate contract is created under that letter of credit. It is created via the transactions “Receiving Documents” (LITDCK) , “Advising Documents” (LITDAV) or “Release of Goods” (LITROG). Transactions for processing document sets are handled under the subordinate sector “Document Sets under an Import L/C” ('BR').

“Loan” (TR) and “Advance” (BP) are not part of the “Import L/C” business sector, but are separate business sectors and need to be purchased and installed separately.

For documents submitted as part of the Import L/C, the transaction establishes a sub-contract for each document record. This sub-contract has its own reference number (made up of the reference number for the import L/C together with a counter).

All transactions affecting a document set are processed as part of the relevant sub-contract. In a document set, transactions can only then be carried out when the corresponding document set (BR) has automatically been added by the Documents Received procedure.

The import L/C first has to be accessed before working on transactions affecting the import L/C. If the Documents Received procedure has already been run and if relevant document sets are already available, the selection list of these document sets is displayed.

The organization of this process makes particular sense because multiple single presentations of documents can take place in an import L/C. This division of the work allows each individual presentation to be processed easily. The application calculates the total of all presentations against the original amount of the import L/C.

Amendments are edited in “Amending” (LITAME).If an amendment request is to be sent to one of the parties in advance, this is sent using the “Request of Amendment” (LITRAM) transaction. Amendments captured here are saved in an auto-registration for the amendment. If the amendment is to be finalized, the autoregistration is retrieved and the “Amending” transaction is saved. If a limit check is to be performed before the change, this is done using the “Liability Approval for Amendment” (LITAMR).

If an incoming message containing an amendment request (e.g. SWIFT MT707) is picked up, the corresponding free text contained in the transaction is copied to the CONTAG79 field. The text is not changed and remains the same as the text in the incoming message.

The “Narrative” (NARTXT) field compiles the changes that will comprise the outgoing message. The contents of CONTAG79 form the basis for this field and this text can be edited for the outgoing message. In particular, changes made to long text fields (e.g. descriptions of goods) are normally made in CONTAG79. To facilitate this, the application provides text fields to allow amendments to be assigned to the relevant original texts.

The NARTXT together with the changes entered in the individual text fields listed consecutively are issued in a :79. Thus changes made to texts, such as to the description of goods, are either found in NARTXT or in the “amended description of goods” field - not both - to prevent them appearing twice in the outgoing message.

During issuance of Standby L/C, it is not possible anymore

• to send the issuance electronically via SWIFT MT700/ 705/ 710/ 720,
• to send issuance confirmation (such as MT730, MT771) to corporates via Score or DTA or
• to send an Advice of Refusal via MT734.

These messages will be replaced with respective free format messages (example: SWIFT MT799, Score MT789/799 etc.). Free format messages will be generated if the user selects the “Form of L/C” as ‘Irrevocable Standby’ or ‘Irrevoc Trans Standby’ or if the “Applicable rules” is ‘ISP latest version’.

The application will also give a warning message:
'“An auto-converted free format message will be created instead of the dedicated electronic message as the selected channel does not support handling of Standby L/Cs anymore”' to the user for better understanding.