User Tools
Add this page to your book 
Remove this page from your book 
Manage book (
Help Table of Contents
Opening an Import L/C
Transaction LITOPN
This transaction is used to issue an import L/C at the request of the applicant. If the L/C is pre-advised or registered, the reference number (which has been assigned in the pre-advice or the registration) has to be searched or selected first. All information stored on pre-advice or registration (except the currency of the contract) can be modified.
The system supports the issuance of revolving L/Cs. If a letter of credit is marked as “Revolving L/C”, a separate panel will be displayed where the revolving details can be entered. The revolving clause will be added to the field “Additional Conditions” of the outgoing MT 700 message. The actual utilization is processed in Revolving. For further information on revolving letters of credit, refer to the transaction documentation Revolving.
Possible types of L/Cs:
- Irrevocable - this irrevocable letter of credit is the normal method of payment in international trade. It provides the seller with the security that the issuing bank will make payment when the documents complying with the terms and conditions of the L/C are presented on time.
- Irrevocable Standby - this provides additional assurances of payment in the case of loss/damage. It provides additional security if a third-party cannot perform its obligation.
Standbys are mainly used in North America, as the issuance of guarantees is legally not allowed. For further details on handling of a standby, check Handling of Standby L/C - Irrevocable Transferable - with a transferable L/C, the beneficiary instructs the transferring bank authorized to make payment (ADT) to provide all or part of the L/C to a second beneficiary.
- Irrevocable Trans Standby
Available with Bank
- This is the name of the bank authorized to pay, to accept drafts or to negotiate them. The exception here is when the L/C permits any bank to negotiate; in this case select “Any Bank”.
Options for the "Available with" field
- By Payment - The advising bank receives the documents from the beneficiary. Payment is made once the documents have been received and checked. This is to be done within seven days. This is the most often used option.
- By Negotiation - In this option, the negotiating (purchasing) bank is entered in the “Available with” field. If “Any bank” is selected, for example, when the documents are received (in transaction Receiving Documents (LITDCK)) the bank is entered in the “Received from” field. Payment is made when the documents are presented.
- By Deferred Payment - Payment is made at a date set previously, e.g. the date of shipment.
- By Acceptance - The L/C is subject to the acceptance of a draft.
- By Mixed Payment - a combination of a number of options to be able to access a part-payment earlier, for example.
UPAS/UPAU
The option “UPAS/UPAU” will be available. This is enabled only for the “Available By” options “By Acceptance” or “By Deferred Payment”. If “UPAU” option is selected, then “UPAU Days” have to be provided.
Detailed information on UPAS/UPAU LC's can be found under UPAS/ UPAU.
Back-to-back L/C
This transaction is also used to open an L/C based on an export L/C (back-to-back). In this case, the transaction is started from a selected export L/C contract from the Export L/C business sector. Some of the data contained in the export L/C contract is transfered. Furthermore, the fundamental data from the export L/C contract is displayed on the “Transfers/Back-to-back L/C” panel. In addition, a number of checks are run to ensure that, when opened, the L/C conforms with the export L/C contract.
Assignments
Assignments can be processed on the panel “Assignment of Proceeds”. Further information on this topic can be found under the transaction Assignment of Proceeds.
Syndications
Furthermore, syndications can be handled on the homonymous panel. Detailed information on syndications can be found under Participations Sold (Syndications).
Auto-Extension
Standby LCs can be issued for a limited period if banks are concerned about issuing contracts for longer terms. The Auto-Extension functionality provides the ability to automatically extend the expiry date of the contract. The checkbox “Auto-Extension” can be set for a standby LC, which makes the “Auto-Extension” panel visible and allows the user to enter the details of the auto-extension schedule. The Auto-Extension process can be initiated when issuing or amending the contract (such as Opening an Import L/C, Amending or Internal Amendment). Diary entries are generated or updated in these transactions in order to inform the account officer/relationship manager or applicant of the upcoming Auto-Extension and to process the Auto-Extension itself. The Auto-Extension Advice is sent to the account officer/relationship manager or applicant by processing of the diary in transaction Common Messages. The Auto-Extension is done by processing of the diary in transaction Internal Amendment.
Until timely notice of Non-Extension is given by the account officer/relationship manager or applicant, the standby LC/guarantee will automatically be extended for an additional period as per defined “Extension Period” until the “Final Expiry Date” is reached or cancellation is agreed to by the beneficiary (please refer to Internal Amendment).
Requirements
This transaction creates a new Import L/C contract.
If an existing Import L/C contract is used, it may not be open or closed.
Incoming Messages
| Channel | Description | MT | Description | Comment |
|---|---|---|---|---|
| A | DTA Import | 700 | Issue of Documentary Credit | |
| B | Bolero | 460 | DocumentaryCreditApplication | |
| M | SmartForms | 700 | Issue of Documentary Credit | |
| S | SWIFT | 700 | Issue of Documentary Credit | |
| S | SWIFT | 770 | LC Application Index | |
| T | TradeConnect | 700 | Issue of Documentary Credit |
For incoming allNETT / RIVO messages see Overview of Incoming messages - allNETT / RIVO.
Transaction Control
Fees
None
Commissions
Results of this Transaction
Diaries
For more information see TRNDIA Diaries.
| Action | Description | Diary | Follow-up Transaction | Comment |
|---|---|---|---|---|
| Replace | Cancel MT740 for the unutilised balance | L/C Expiring on | Common Messages | If Reimbursement Bank set. |
| Replace | Import LC will expire | L/C Expiring on - 10 Working Days | Common Messages | If “L/C Expiring on” is set. |
| Replace | Import LC Expired | L/C Expiring on + 5 Working Days | Closing | If “L/C Expiring on” is set. |
| Replace | Next revolving instructions received? | “Next Revolve Date” - 5 Working Days | Common Messages | If Revolving L/C and “Awaiting Applicant´s Request” is filled and “Revolving Type” not “Revolving upon utilization” and “Next Revolve Date” filled. |
| Replace | Next revolving | Next Revolve Date | Revolving | If Revolving L/C and “Awaiting Applicant´s Request” is filled and “Revolving Type” not “Revolving upon utilization” and “Next Revolve Date” filled. |
| Replace | Advice Letter to the Customer | On the “Advice Date”, if filled | Common Messages | The Advice Date can be set on the “Auto-Extension” Panel when checkbox “Auto-Extension” is checked. |
| Replace | Auto-Extension of the Standby | On the “Non-Extension-Date”, if filled | Internal Amendment | The Non-Extension-Date can be set on the “Auto-Extension” Panel when checkbox “Auto-Extension” is checked. |
| Completed | Diaries that have been generated in transaction “Pre-Opening an Import L/C” (LITPOP) will be deleted. |
Updating/Storing of Amounts (CBS)
The nominal amount of the Import L/C and the maximum amount (including upward tolerance) are stored internally.
Liability (LIA)
The liability is booked for the maximum amount plus any additional amount if input. Normally the liability is booked on the applicant. However, if applicant's bank is present, then the liability is booked on that party.
Outgoing Correspondence
Details on creation of messages can be found under DOCEOT Messages. For outgoing allNETT / RIVO messages see Overview of Outgoing messages - allNETT / RIVO.
Assignments messages and messages concerning Participations Sold (Syndications) will be created.
| Name of Message | Receiver | Message ID | SWIFT | SWIFT Score | TCO | DTA/DTE | Bolero | Comment |
|---|---|---|---|---|---|---|---|---|
| Issuance of a Documentary Credit | Beneficiary | LITBEN1 | 700 | This is generated automatically providing an MT701 if required. | ||||
| Doc.Credit Issuance Notification | Applicant's Bank/ Applicant | LITAPL1 | 730 | 771/700 | 700 | DTALCR 700 | 466 | For Bank-to-Corporate messages, a “Notification of Issuance” will be sent to the Applicant. For Bank-to-Bank messages an “Acknowledgement” will be sent. |
| Authorization to Reimburse | Reimbursement Bank | LITRMB1 | 740 |
Release
Signature required
Transaction Panels
Overview
Additional Amount
Parties
allNETT Fields
Details
Auto-Extension
Goods
Documents
Additional Conditions
Loan Details
Special Paymt Cond. Beneficiary
Special Paymt Cond. Bank only
Revolving Details
Reimbursement
Transfer/ Back-to-Back L/Cs
Assignment
Participation Sold
Liability
Settlement Details
Settlement
Bookings
Cash Cover
Completion
Incoming Tag 72/79
Messages
Compliance
Attachments
DTAEA Fields
DTALC Fields
Fee Conditions
DTAG Fields
Overview
Datafields
| Datafield | Description |
|---|---|
| Reference | If the L/C is issued using SWIFT, the information entered here is available in Tag 20 of the MT700. cf Appendix A, Table LID field OWNREF |
| Form of L/C | If the L/C is issued using SWIFT, the information entered here is available in Tag 40A of the MT700. cf Appendix A, Table LID field LCRTYP |
| Direct rejection | cf Appendix A, Table LID field REJFLG |
| Responsible User | cf Appendix A, Table LID field OWNUSR |
| Reserved Contract | cf Appendix A, Table LID field RESFLG |
| Currency | If the L/C is issued using SWIFT, the information entered here is available in Tag 32B of the MT700. cf Appendix A, Table CBB field CUR |
| Nominal Amount | If the L/C is issued using SWIFT, the information entered here is available in Tag 32B of the MT700. This field contains the nominal amount of the letter of credit. cf Appendix A, Table CBB field AMT |
| Additional Amount | If this box is checked, additional amounts are available under the contract and an additional panel is available to enter details. |
| Positive Amount Tolerance | If the L/C is issued using SWIFT, the information entered here is available in Tag 39A of the MT700. cf Appendix A, Table LID field NOMTOP |
| Negative Amount Tolerance | If the L/C is issued using SWIFT, the information entered here is available in Tag 39A of the MT700. cf Appendix A, Table LID field NOMTON |
| Type of Request | cf Appendix A, Table LID field REQTYP |
| Amount Specification | cf Appendix A, Table LID field NOMSPC |
| Currency | If the L/C is issued using SWIFT, the information entered here is available in Tag 39B of the MT700. cf Appendix A, Table CBB field CUR |
| Maximum Amount | If the L/C is issued using SWIFT, the information entered here is available in Tag 39B of the MT700. This field contains the amximum amount available under the letter of credit. cf Appendix A, Table CBB field AMT |
| L/C Issued on | If the L/C is issued using SWIFT, the information entered here is available in Tag 31C of the MT700. cf Appendix A, Table LID field OPNDAT |
| Date Pre-Advised | If the L/C is issued using SWIFT, the information entered here is available in Tag 23 of the MT700. cf Appendix A, Table LID field PREADVDT |
| Latest Shipment Date | If the L/C is issued using SWIFT, the information entered here is available in Tag 44C of the MT700. N.B.: Input in this field is only allowed if a shipment period has not been entered. Otherwise this field is protected. cf Appendix A, Table LID field SHPDAT |
| Expiry Date | If the L/C is issued using SWIFT, the information entered here is available in Tag 31D of the MT700. cf Appendix A, Table LID field EXPDAT |
| Place of Expiry | If the L/C is issued using SWIFT, the information entered here is available in Tag 31D of the MT700. cf Appendix A, Table LID field EXPPLC |
| Partial Shipment | If the L/C is issued using SWIFT, the information entered here is available in Tag 43P of the MT700. cf Appendix A, Table LID field SHPPAR |
| Partial Shipment | cf Appendix A, Table LID field SHPPARS18 |
| Transshipment | If the L/C is issued using SWIFT, the information entered here is available in Tag 43T of the MT700. cf Appendix A, Table LID field SHPTRS |
| Transhipment | cf Appendix A, Table LID field SHPTRSS18 |
| Applicable Rules | cf Appendix A, Table LID field APPRUL |
| Other Applicable Rules | cf Appendix A, Table LID field APPRULTXT |
| Confirmation Instructions | If the L/C is issued uisng SWIFT, the information entered here is available in Tag 49 of the MT700. cf Appendix A, Table LID field CNFDET |
| Currency | cf Appendix A, Table CBB field CUR |
| Open Amount | This field contains the amount available under the letter of credit. cf Appendix A, Table CBB field AMT |
| Your Order Dated | cf Appendix A, Table LID field ORDDAT |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| Reimbursement Information | cf Appendix A, Table LID field RMBFLG |
| Revolving Flag | cf Appendix A, Table LID field REVFLG |
| Auto-Extension | cf Appendix A, Table LID field AUTRNWFLG |
| Domestic L/C | cf Appendix A, Table LID field DOMFLG |
| Assignment of Proceeds | cf Appendix A, Table LID field AOPFLG |
| Specify Loan Term | cf Appendix A, Table LID field SPFINFLG |
Parties
Datafields
| Datafield | Description |
|---|---|
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
allNETT Fields
Datafields
| Datafield | Description |
|---|---|
| Incoterm Place | cf Appendix A, Table LID field INCTRMPLC |
| Incoterm Freight | cf Appendix A, Table LID field INCTRMFRT |
| Incoming allNETT Window ID 01W06 | cf Appendix A, Table LIT field INC01W06 |
| Incoming allNETT Window ID 01W07 | cf Appendix A, Table LIT field INC01W07 |
| Received Account Details | cf Appendix A, Table LIT field INCACCDET |
Details
Datafields
| Datafield | Description |
|---|---|
| Available with | If the L/C is issued using SWIFT, the information entered here is available in Tag 41A of the MT700. cf Appendix A, Table LID field AVBWTH |
| Available with | If the L/C is issued using SWIFT, the information entered here is available in Tag 41A of the MT700. cf Appendix A, Table LIT field AVBWTHTXT |
| Available by | If the L/C is issued using SWIFT, the information entered here is available in Tag 41A of the MT700. cf Appendix A, Table LID field AVBBY |
| Usance Payable at Sight/Usance | cf Appendix A, Table LID field UPATYP |
| UPAU days | cf Appendix A, Table LID field UPAUDS |
| Deferred Payment Details | If the L/C is issued using SWIFT, the information entered here is available in Tag 42P of the MT700. N. B.: This field is mandatory if the L/C is available by deferred payment. cf Appendix A, Table LIT field DEFDET |
| Drafts at | If the L/C is issued using SWIFT, the information entered here is available in Tag 42C of the MT700. cf Appendix A, Table LIT field DFTAT |
| External Key | cf Appendix A, Table PTS field EXTKEY |
| Address Block | cf Appendix A, Table PTS field ADRBLK |
| Dispatch from | If the L/C is issued using SWIFT, the information entered here is available in Tag 44A of the MT700. cf Appendix A, Table LID field SHPFRO |
| Port of Loading | cf Appendix A, Table LID field PORLOA |
| Port of Discharge | cf Appendix A, Table LID field PORDIS |
| Final Destination | If the L/C is issued using SWIFT, the information entered here is available in Tag 44B of the MT700. cf Appendix A, Table LID field SHPTO |
| Shipment Period | If the L/C is issued using SWIFT, the information entered here is available in Tag 44D of the MT700. N.B.: Input in this field is allowed only if the latest shipment date has NOT been entered. Otherwise this field is protected. cf Appendix A, Table LIT field SHPPER |
| Presentation Period | If the L/C is issued using SWIFT, the information entered here is available in Tag 48 of the MT700. cf Appendix A, Table LIT field PREPER |
| Presentation Period modified | cf Appendix A, Table LIT field PREPERFLG |
| Days of presentation period | cf Appendix A, Table LID field PREPERS18 |
| Presentation period text | cf Appendix A, Table LID field PREPERTXTS18 |
| Details of Charges | If the L/C is issued using SWIFT, the information entered here is available in Tag 71B of the MT700. cf Appendix A, Table LIT field FEETXT |
| Fee settlement - our fee to be debited to | cf Appendix A, Table LID field CHATO |
| Country Code (Risk Country) | cf Appendix A, Table LID field STACTY |
| Mixed Payment Details | If the L/C is issued using SWIFT, the information entered here is available in Tag 42M of the MT700. N.B.: This field is mandatory, if the L/C is available by mixed payment. cf Appendix A, Table LIT field MIXDET |
Auto-Extension
Datafields
| Datafield | Description |
|---|---|
| Count of Advised Subcontracts without Documents | cf Appendix A, Table LID field ADVNBR |
| Notify Period | cf Appendix A, Table LID field NOTNBR |
| Extension Period | cf Appendix A, Table LID field RNWNBR |
| Final Expiry Date | cf Appendix A, Table LID field EXPDATFIN |
| Notification Information | cf Appendix A, Table LIT field NOTTXT |
Goods
Datafields
| Datafield | Description |
|---|---|
| Description of Goods | If the L/C is issued using SWIFT, the information entered here is available in Tag 45A (45B) of the MT700 (MT701). cf Appendix A, Table LIT field LCRGOD |
| Goods Code (for Statistics) | cf Appendix A, Table LID field STAGOD |
Documents
Datafields
| Datafield | Description |
|---|---|
| Required Documents | If the L/C is issued using SWIFT, the information entered here is available in Tag 46A (46B) of the MT700 (MT701). cf Appendix A, Table LIT field LCRDOC |
Additional Conditions
Datafields
| Datafield | Description |
|---|---|
| Additional Conditions | If the L/C is issued using SWIFT, the information entered here is available in Tag 47A (47B) of the MT700 (MT701). cf Appendix A, Table LIT field ADLCND |
| Special payment conditions for beneficiary exists | cf Appendix A, Table LID field SPCBENFLG |
| Special Payment Conditions for specified Bank only | cf Appendix A, Table LID field SPCRCBFLG |
| Red/Green Clause | cf Appendix A, Table LID field REDCLSFLG |
| Red/Green Clause Currency | cf Appendix A, Table LID field REDCLSCUR |
| Red/Green Clause Amount | cf Appendix A, Table LID field REDCLSAMT |
| Red/Green Clause Percentage | cf Appendix A, Table LID field REDCLSPRC |
| ALADI Checkbox | cf Appendix A, Table LID field ALADIFLG |
| ALADI Reimb. Code | cf Appendix A, Table LID field ALADICOD |
| Instructions to Pay/Accept/Negotiating Bank | If the L/C is issued using SWIFT, the information entered here is available in Tag 78 of the MT700. cf Appendix A, Table LIT field INSBNK |
Loan Details
Datafields
| Datafield | Description |
|---|---|
| Base Rate | cf Appendix A, Table LID field IRTCOD |
| Cash Base | cf Appendix A, Table LID field CSHRAT |
| Liquidity costs | cf Appendix A, Table LID field LQDRAT |
| Financing Flat Fee | cf Appendix A, Table LID field OWNRATFLG |
| Our margin | cf Appendix A, Table LID field OWNRAT |
| Document Currency | cf Appendix A, Table LID field OWNCUR |
| Fixed price for total maturity | cf Appendix A, Table LID field OWNAMT |
| Total interest rate | Sum of interest costs + liquidity costs + our margin The total interest rate used to calculate the commission. |
| Financing Period | cf Appendix A, Table LID field INTDAYLC |
Special Paymt Cond. Beneficiary
Datafields
| Datafield | Description |
|---|---|
| Special Payment Conditions for Beneficiary | cf Appendix A, Table LIT field SPCBEN |
Special Paymt Cond. Bank only
Datafields
| Datafield | Description |
|---|---|
| Special Payment Conditions for Bank Only | cf Appendix A, Table LIT field SPCRCB |
Revolving Details
Datafields
| Datafield | Description |
|---|---|
| Revolving Type | cf Appendix A, Table LID field REVTYP |
| Credit is Marked as Cumulative | cf Appendix A, Table LID field REVCUM |
| Revolving Times | cf Appendix A, Table LID field REVTIMES |
| Number of Revolvings under L/C | cf Appendix A, Table LID field REVNBR |
| Revolving Date | cf Appendix A, Table LID field REVDAT |
| Awaiting Applicant's Request | cf Appendix A, Table LID field REVAWAPL |
| Revolving Clause | cf Appendix A, Table LIT field REVCLS |
| Notes to Applicant | cf Appendix A, Table LIT field REVNOTES |
Reimbursement
Datafields
| Datafield | Description |
|---|---|
| Default Account | cf Appendix A, Table PTS field DFTACT |
| Reimbursing Bank Account Identification | cf Appendix A, Table LID field RMBACT |
| Reimbursing Bank's Charges | cf Appendix A, Table LID field RMBCHA |
| Reimbursement Charges | cf Appendix A, Table LIT field RMBCHA |
| Applicable Rules Reimbursement | cf Appendix A, Table LID field APPRULRMB |
| Date of Authorization to Reimburse | cf Appendix A, Table LID field AUTDAT |
Transfer/ Back-to-Back L/Cs
Datafields
| Datafield | Description |
|---|---|
| Own Reference | cf Appendix A, Table LED field OWNREF |
| Currency | cf Appendix A, Table CBB field CUR |
| Nominal L/C Amount | This field contains the nominal amount of the letter of credit cf Appendix A, Table CBB field AMT |
| Additional Amount | If this box is checked, additional amounts are available under the contract and an additional panel is available to enter details. |
| Currency | cf Appendix A, Table CBB field CUR |
| Open Amount | This field contains the amount which is still available under the letter of credit. cf Appendix A, Table CBB field AMT |
| Revolving Flag | cf Appendix A, Table LED field REVFLG |
| Available by | cf Appendix A, Table LED field AVBBY |
| Red/Green Clause | cf Appendix A, Table LED field REDCLSFLG |
| Opening Date | cf Appendix A, Table LED field OPNDAT |
| Shipment Date | cf Appendix A, Table LED field SHPDAT |
| Date of Expiry | cf Appendix A, Table LED field EXPDAT |
| Place of Expiry | cf Appendix A, Table LED field EXPPLC |
| Form of Documentary Credit | cf Appendix A, Table LED field LCRTYP |
| Name | cf Appendix A, Table PTS field NAM |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| Name | cf Appendix A, Table PTS field NAM |
| Reference for Address (Optional) | cf Appendix A, Table PTS field REF |
| Name | cf Appendix A, Table PTS field NAM |
| Reference for Address (Optional) | The Beneficiary is the exporter of the good's. cf Appendix A, Table PTS field REF |
| Confirmation text | This field contains a short description concerning the type of the letter of credit. |
Compliance
DTAG Fields
