Requesting, amending and accepting an Import Letter of Credit

Requesting and managing an Import Letter of Credit

These steps are designed to help with requesting and managing your Import Letter of Credit through Trade Finance Online, covering:

• requesting an Import Letter of Credit
• amending an Import Letter of Credit
• providing acceptance or payment instructions for an Import Letter of Credit

How to request an Import Letter of Credit

Make sure you’re logged into NAB Connect to get started.

1. From the Products menu, select ‘Trade Finance’ to open Trade Finance Online (TFO).
2. From the Trade Services menu in TFO, select ‘Import Letter of Credit’, then select ‘Request Letter of Credit’. You can also create or select a Template from the list of a pre-prepared Letters of Credit.
3. Complete the General Details section – ensure to complete all mandatory fields.
4. Complete the Applicant and Beneficiary Details section.
   Note: Select ‘Save This Beneficiary’ for frequently used ‘Beneficiary Details’.
5. Complete the Bank Details section – provide ‘Advising Bank’ details (generally, this is your supplier’s bank).
   Note: Select the ‘Search’ function in the SWIFT Code field to create a List of Banks for frequently used Bank Detail. Include ‘BIC Code (SWIFT)’ details.
6. Complete the Amount and Charge Details section, including Letter of Credit amount and currency.
7. Complete the Payment Details section.
8. Complete the Shipping Details section.
9. Complete the Narrative Details section:
   • ‘Goods and Documents’ tab – complete ‘Description of Goods’, ‘Documents Required’ and ‘Additional Instructions’.
     Note: Use “SHIFT + ENTER” to change the line and include a plus symbol “+” in front of each document required on a separate line.
   • ‘Other Details’ tab – complete ‘Special Payment Conditions for Beneficiary’ and ‘Period for Presentation’.
     Note: Provide number of days for ‘Period for Presentation’ section.
10. Complete the Instructions to Bank section if required, then select Next.
    Note: In case Standard Settlement Instructions (SSI) has already been executed with us, we will process as per SSI.
11. Upload Attachments if required, then select Next.
    Note: In general, Attachments are not required at Import Letter of Credit Issuance stage.
12. A preview will display to enable you to review all the inputs. Once you have reviewed all the inputs, select Submit.
13. A Success screen will appear once submitted. The transaction status will show as ‘Pending Bank Approval’, or ‘Pending at Approval’, which is to be reviewed by another Authoriser as per your TFO Profile set up.

How to amend an Import Letter of Credit

Make sure you’re logged into NAB Connect to get started.

1. From the Products menu, select ‘Trade Finance’ to open Trade Finance Online (TFO).
2. From the Trade Services menu in TFO, select ‘Import Letter of Credit’, then under the ‘Live’ tab, identify the transaction you wish to Amend.
3. Move your mouse under the Actions column next to the transaction, where available options will appear as ‘Amend’, ‘Correspondence’, ‘Cancel’, ‘View’ or ‘Details’.
4. Select ‘Amend’.
5. The current Import Letter of Credit terms and conditions will be available under the Sections on the left of the screen. Review and make any required amendments under any of the Sections – ‘General Details’, ‘Applicant and Beneficiary Details’, ‘Bank Details’, ‘Amount and Charge Details’, ‘Payment Details’, ‘Shipment Details’, ‘Narrative Details’, ‘Instructions to Bank’, and ‘Attachments’. Select ‘Next’ to navigate through each section.
   Note: In general, Attachments are not required at the Import Letter of Credit Amendment stage.
6. A preview will display to enable you to review all the inputs. Once you have reviewed all the inputs, select Submit.
7. A Success screen will appear once submitted. The transaction status will show as ‘Pending Bank Approval’, or ‘Pending at Approval’, which is to be reviewed by another Authoriser as per your TFO Profile set up.

How to provide acceptance or payment instructions for drawings under an Import Letter of Credit

Make sure you’re logged into NAB Connect to get started.

1. From the Products menu, select ‘Trade Finance’ to open Trade Finance Online (TFO).
2. From the Trade Services menu in TFO, select ‘Import Letter of Credit’, then under the ‘Live’ tab, identify the transaction you wish to create the Acceptance or Payment Instruction for.
3. Move your mouse under the Actions column next to the transaction, where available options will appear as ‘Amend’, ‘Correspondence’, ‘Cancel’, ‘View’ or ‘Details’.
4. Select ‘Correspondence’.
5. Under General Details, enter your instructions in the ‘Customer Instruction’ field and select Next.
   Note: Suggested wording for ‘Customer Instructions’:
   • Acceptance instruction – to advise your acceptance of discrepancies where we have advised our receipt of a non-complying presentation for a drawing under an Import Letter of Credit.  Example: “We confirm our acceptance of discrepancies in your Bank Schedule Advice.”
   • Payment instruction –to advise the payment details to settle a drawing under an Import Letter of Credit. Example: “Please settle this transaction (provide foreign exchange instructions, trade finance instructions, settlement/debit account details, or other information here).”
6. Upload Attachments if required, then select Next.
   Note: In general, Attachments are not required at the Import Letter of Credit Acceptance or Payment stages.
7. A preview will display to enable you to review all the inputs. Once you have reviewed all the inputs, select Submit.
8. A Success screen will appear once submitted. The transaction status will show as ‘Pending Bank Approval’, or ‘Pending at Approval’, which is to be reviewed by another Authoriser as per your TFO Profile set up.