1. Islamic Letters of Credit
  2. Overview of Islamic Letters of Credit
  3. Operations supported on an Islamic LC

1.2 Operations supported on an Islamic LC

The following are the operations supported on an Islamic LC:
  • Open an import Islamic LC or guarantee
  • Open and confirm an import Islamic LC
  • Pre-advice an export Islamic LC
  • Advice an export Islamic LC
  • Advice and confirm an export Islamic LC
  • Confirm an export Islamic LC
Thus, your bank can perform one of the following roles:
  • The issuing (opening) bank for an import Islamic LC or guarantee
  • The advising bank or for an export Islamic LC
  • The confirming bank for an export Islamic LC
In addition to amendment of the terms of an Islamic LC such as the expiry date, the amount, the latest shipment date, etc., you can amend the operation on an Islamic LC as follows:
  • Open to open and confirm of an import Islamic LC
  • Pre-advice to advice of an export Islamic LC
  • Pre-advice to advice and confirm an export Islamic LC
  • Advice to advice and confirm an export Islamic LC

Appropriate messages, advices, and covering letters are generated for these operations. These are listed in an annexure in this manual. The SWIFT messages generated for the different types of Islamic LC are listed in this chapter.

Parent topic: Overview of Islamic Letters of Credit