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Import / Export Splitting

Summary

Prior to Contour v7.0, if the Identity of the Issuing bank is the same as the Advising bank, Contour skips the action of the Advising bank and and auto-advises the DC,as soon as it is issued. In 7.0 this skipping of process is removed, so that issuing and advising processes in a letter of credit transaction are treated as separate actions to be performed by the bank, regardless of if parties are unique identities or not.

Workflow changes

DC Issuance / Amendment

Scenario

Applicant has selected the same bank identity as issuing bank and as advising/nominated bank. The user may have edited the branch address, so that the issuing and advising bank are different branches. However they are represented by the same Contour node.

Step No. Before 7.0 After 7.0
1 Applicant sends a DC application to the Issuing bank Applicant sends a DC application to the issuing bank
2 Bank user, from the Import DC view, can issue / return the DC according to their user admin settings Bank user, from the Import DC view, can issue / return the DC according to their user admin settings
3 Once issued, no additional action is required from advising bank and DC status is ‘Issued and advised’ Once issued, DC status is ‘Issued’
4 - Bank user, from the Export DC view, can advise / reject the DC according to their user admin settings
5 - If advised, DC status is ‘Issued and Advised’
6 Bene can now present against the DC Bene can now present against the DC

Workflow diagram (after 7.0)

DC Issuance workflow when Issuing and advising bank are the same identity

DC Presentation

Scenario

Beneficiary is presenting a DP to the issuing bank

This could be the scenario due to :

  • The issuing bank identity is the same as the nominated bank

    OR

  • issuing and nominated bank are different contour identities, and the beneficiary chooses to present directly to the Issuing bank as is allowed under UCP

Step No. Before 7.0 After 7.0
1 While drafting the presentation, beneficiary selects the issuing bank as the 'Present to' bank While drafting the presentation, beneficiary selects the issuing bank as the 'Present to' bank
2 DP status updates to ‘Bank review’ DP status updates to ‘Bank review’
3 Issuing bank, from the Import DC view, is the action party and the options for them are to accept/return the DP Issuing Bank, from the Export DC view, is the action party and the options for them are to forward/return the the DP
4 DP status - As determined by the issuing bank, either accepting the DP or returning the DP DP status - Bank review
5 - Issuing bank, from the Import DC view, is the action party and the options for them are to accept/return the DP
6 - DP status - As determined by the issuing bank, either accepting the DP or returning the DP
7 If accepted, issuing bank is the action party which can choose to ‘set payment date’ or ‘set payment date and release documents to the Applicant' If accepted, issuing bank is the action party which can choose to ‘set payment date’ or ‘set payment date and release documents to the Applicant'

Workflow diagram (after 7.0)

DC Presentation workflow when beneficiary presents to the issuing bank's identity

Limitations

There are a few limitations in using the same identity for different parties in the DC transaction:

  • If Issuing and advising or 'credit available with' bank are the same identity, the confirmations on the DC are not supported.

    • When the applicant selects the same identity as the issuing as well as advising or nominated bank, then confirmation instructions will be defaulted to ‘Without’
  • If Issuing and advising banks are the same identity, then the 'Credit Available With' will be restricted to two options:

    1. Credit available with the same bank (selected as issuing/advising bank)
    2. Credit available with 'Any Bank'
  • During an amendment, the nominated bank or advising bank cannot be changed to a different identity

  • During a presentation, if the issuing and nominated bank are the same identity, then the issuing bank will be able to see the cover letter sent by the beneficiary to the nominated bank.

  • P2P messages cannot be sent between users of the same identity.

    • If two branches of a bank use the same identity, P2P messages cannot be sent between the branches.
  • P2P messages sent by other parties (e.g. applicant) is visible to all users on the identity

    • If the issuing and advising branches are using the same identity, P2P messages sent to the issuing branch can be seen or replied to by the advising branch.