Rabobank Rabo eTrade Owner’s Manual

**Rabobank Rabo eTrade Owner’s Manual

**

Rabobank March 2020
All rights reserved. This document is the property of Rabobank and may not be reproduced, by any means, in whole or in part, without the prior permission of Rabobank. This document is provided with the understanding that proprietary information of Rabobank is contained therein, and that no part of its contents will be disclosed to third parties without the prior express consent of Rabobank.

The content of this document is intended as a detailed description of the Rabo eTrade® Trade Finance Banking Systems. This document does not in any way, constitute any undertaking on behalf of Rabobank in respect of any aspects of the system, and Rabobank reserves the right, at any time to improve or change the product described.

Rabo eTrade® is a registered trademark of Rabobank.

Introduction

This document provides Customer users of Rabo eTrade with a guide to the activities required for the operation of Rabo eTrade features and functions related to the issuance and amendment of Letters of Credit (L/Cs).

The Rabo eTrade system and accompanying documentation assume a working
knowledge of Trade Finance, along with industry standard basic computer and cyber skills.

Working Assumptions:The Rabo eTrade system and documentation package assume a working knowledge of Trade Finance, and industry standard basic computer and cyber skills.

Types of Users: Several types of users can be defined in Rabo eTrade. This enables implementation of the business practices, roles and responsibilities, authorization levels and segregation schemes within the bank and defined jointly in your system with Rabobank team/s.

Transaction Overview

The following Rabo eTrade transactions must be performed in the listed order:

1. Transaction Initialization — each transaction initialization is made up of a number of data sections, all of which must be completed in order to finalize the transaction. For example, there are seven sections involved in an Import L/C initialization: general details, settlement data, transportation, participants, terms, text, and confirmation.
2. Transaction Authorization — once all transaction details are completed, the transaction must be approved by the required number of authorization signatures before it is ready for transmission. The customer determines the number and type of signatures required based on the value of the transaction.
3. Transaction Transmission — when transaction details are completed, the transaction is automatically transmitted to the Bank’s Back Office.
4. Status — all transactions have a status determining the current stage of the specific transaction, starting with the creation until final release at the Bank’s Back Office by the bank.

Import Letter of Credit

The following sections describe all transactions which can be initialized by the user for Import Deals.

• Opening a New Letter of Credit
• Saving and Authorizing the Import L/C
• Amending a Letter of Credit

Opening a New Letter of Credit

To open a new Letter of Credit:

1. From Issuance: Import, click Letter of Credit Issuance.
   The Import Letter of Credit Issuance General Details page is displayed.
   
   Figure – Import Letter of Credit Issuance: General Details tab

2. Enter data in the relevant fields.
   The following are the General Details section fields:

   • Reference No.
     Specifies a unique deal identification number decided by the Rabo eTrade user. For example, the contract reference number.

   • Generate Ref No.
     When checked, the customer reference number is generated automatically but on the customer request.

   • Deal Number
     Specifies the Deal Number created by the Bank. When Rabo eTrade is configured to do so, this field includes the bank deal number as generated by Rabo eTrade.
     After release of the deal in the Bank’s Back Office the relevant deal information is downloaded to Rabo eTrade.

   • Currency
     Specifies the currency in which the L/C amount is expressed.

   • Amount
     Specifies the L/C amount.

   • Amount Terms Specifies whether the terms of payment must be exact or can vary. Valid payment terms include:
     +/- Tolerance – Payment terms may vary according to the upper and lower percentages specified in the Varied Amount % fields or the varied amount sum stated in the Varied Amount Sum field.
     Not Exceeding – The value of the documents may not exceed the L/C amount.
     None (as per UCP)

   • Varied Amount Pct (+/-)
     The percentage variation by which the documents may vary from the L/C amount, when the terms are varied. For example, +12% or -7%.

   • 39C:Additl Amt Covered
     Other amounts covered by the terms of the L/C, e.g., legal fees, etc.

   • Expiry Country
     The country in which the L/C expires.

   • Expiry Date
     The date the L/C expires. Click the calendar icon to display the popup calendar and select the required date. The date is displayed in the text field and can be modified at any time.

   • Address
     Customer address

   • L/C Type
     Specifies the type of L/C. Deal types may include:
     Irrevocable
     Irrevocable Transferable

   • Applicable Rules
     Select the relevant option from the dropdown list.

   • Applicable Rule Name
     When the option OTHER is selected, the user must specify here the Rule that will be applied.

3. Click the Settlement Data tab.
   The Import Letter of Credit Issuance Settlement Data screen displays.
   
   Figure – Import Letter of Credit Issuance: Settlement Data tab
   The following are the Settlement Data section fields:
   Note: Mandatory fields are marked with an asterisk (*).
   Available With
   Specifies which bank is authorized to negotiate the documents on behalf of the beneficiary.
   Authorized banks include:Advising Bank – The Beneficiary’s bank

   • Any Bank (only if the Settlement By is specified as Negotiation)
     The Exporter may present the Letter of Credit to any bank. The bank presented buys the title, pays the bearer and arranges reimbursement.

   • Issuing Bank – The Applicant’s bank

   • Specified Bank
     Note: Any Bank and Specified Bank options require bank name in Available With field.
     Settlement By
     Specifies how the payment is made for the deal, and varies according to user selection.
     When Settlement By Payment is selected, the Sight button is checked automatically.
     When Settlement By Acceptance, Deferred or Mixed Payment is selected, the Time button is checked automatically.
     When Settlement By Negotiation is selected, the field method displays, indicating to the user to select whether it is a Sight or Time negotiation.

   • By Acceptance – Same payment logic as for the Deferred Payment option. In addition to the documents, the beneficiary presents a draft to the bank which, after acceptance by the bank, can be discounted by the beneficiary.

   • By Def(erred) Payment – Payment will be deferred to a later date according to specific terms, for example, 60 days after the Bill of Lading. Enter the relevant details into the Defer Payment Details text box.

   • By Mixed Payment – Combination of Sight and Time options. Enter the relevant details into the Mixed Payment Details text box.

   • By Negotiation – Means the purchase of drafts and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due.

   • By Payment – Payment/s will be remitted upon the receipt of Shipping Documents complying with L/C terms
     Draft Drawn On
     Specifies the drawee of drafts under the L/C, if required. Valid parties include:

   • Advising Bank – The Beneficiary’s bank

   • Issuing Bank – The Applicant’s bank

   • No Draft – When no draft is required (e.g.Letter ofCredit available by payment or deferred payment.

   • Other – Any Intermediary or the Beneficiary Bank, if it is not the Advising Bank.
     Note: There is a strict link between the selected Settlement by and the Draft Drawn On fields. For example, no value is allowed in the Draft Drawn On field for BY PAYMENT or BY DEF PAYMENT options in the dropdown list. Refer to your bank for further details.
     Days for Presentation
     Number of days from B/L date that documents must be presented by.

4. Click the Transportation tab
   The Import Letter of Credit Issuance Transportation screen displays.
   
   Figure – Import Letter of Credit Issuance: Transportation tab
   The following are the Transportation section fields:
   Note: Mandatory fields are marked with an asterisk (*).

   • Incoterms
     State the international code to define where responsibility for the goods starts and ends and which party is responsible for the various charges.
     Note: If the required documents are not included on clicking Save, an error message indicates there are missing documents.

   • Place
     Specifies the named place of destination (according to the selected incoterm)

   • Freight
     Select the relevant option from the dropdown list.

   • Incoterms Version
     Select the relevant option from the dropdown list.

   • Partial Shipment
     Select the relevant option from the dropdown list and, if allowed or other, enter details in the text field provided.

   • Transshipment
     Select the relevant option from the dropdown list and, if allowed or other, enter details in the text field provided.

5. Enter the relevant shipment options in the following fields, specifying the location from where the goods are sent and their destination:

   • Place of Receipt
     Specifies location from which the goods are taken in charge, dispatched from or receipt for transportation.

   • Port of Loading
     Specifies the port of loading or airport of departure

   • Port of Discharge
     Specifies the port of discharge or airport destination

   • Place of Delivery
     Specifies the place of final destination or delivery

   • Latest
     Specifies the latest date the goods must be shipped
     Note: The days for presentation and latest shipment date cannot exceed the expiry date.

   • Shipment Period
     If no latest date of shipment is specified, specify here period during which the shipment of goods must be effected.

6. Click the Participantstab
   The Import Letter of Credit Issuance Participants screen displays.
   
   Figure – Import Letter of Credit Issuance: Participants tab
   The Participants tab enables you to specify the Beneficiary and Advising Bank details relevant to the transaction. You can select a Beneficiary Bank and Advising Bank from a list or by filling in the name and location details.
   Note: The bank may be asked to supply the banks which have been used in previous deals. When a specific Beneficiary is selected from the list in the Participants section, the Advising Bank of the last Deal using that Beneficiary and the same L/C currency automatically display in the Advising Bank fields as the default value.
   Note: The Beneficiary details are mandatory. If the Advising Bank details are not entered, the Advising Bank is selected by the Issuing Bank.
   The following are the available Participants tab fields for both the Beneficiary and the Advising Bank:
   Note: Mandatory fields are marked with an asterisk (*).

   • Search by name
     Locate the Beneficiary or Advising bank by name

   • Search Beneficiary or Additional Parties by name via the Parties screen (pop up).
     Notes:
     In the Additional Parties field, if the selected Party Type is a bank, the Create Party from Deal icon will not be available.
     Add Party is not available for Advising bank, since Rabo eTrade user cannot update the list for this party

   • Name
     The beneficiary or Advising Bank branch name. There may be several branches defined for a beneficiary. To define participant details for a new L/C, enter the full Beneficiary or Advising Bank name.
     Use to search according to the Beneficiary/Advising Bank database name or code.
     Note: You can identify a specific party or bank by entering any number of characters in the Search by Code field and then moving to another field. For Search by Name, enter the first letter (with the Starts With dropdown option) or any letter containing (with the Contains dropdown option) of the party/bank.

   • Street
     The street name where the Beneficiary or Advising Bank is located

   • City
     The city where the Beneficiary or Advising Bank is located.

   • Country
     The country where the Beneficiary or Advising Bank is located.

   • Reference Number
     If a specific Reference number or code exists for the specific Beneficiary, should be specified in this field.

   • SWIFT ID
     Enter the Swift ID number (only for Advising Bank).

7. When relevant, define Additional Parties associated with the transaction by entering data in the fields described below.
   You can select an additional party by entering a code number or by filling in the name and location details.
   If the code is entered in the database, the name and location details are displayed automatically when the code is keyed in.
   If the required additional party code does not exist in the database, type the full name and address of the additional party in the fields provided.

   • Party type
     The additional party’s type. The user can key in the party type or select from a dropdown list. Examples: Agent, Insurance Company.

   • Name
     The additional party’s branch name. There may be several branches defined for a party. To define participant details for a new transaction, enter the full party name.

   • Street
     The street name where the additional party is located.

   • City
     The city where the additional party is located.

   • Country
     The country where the additional party is located.

8. Click the Termstab.
   The Import Letter of Credit Issuance Terms screen displays.
   
   Figure – Import Letter of Credit Issuance: Terms tab

9. Enter relevant data in the following fields:

   • Confirmation Instructions
     Specify confirmation instructions:
     May Add
     Without
     Confirm

   • Charge Conditions
     Specify who pays the bank charges:
     Own bank charges borne abroad
     Other
     Own bank charges borne by customer

10. In the title bar, click the Text tab
    The Import Letter of Credit Issuance Text screen displays.

11. In the title bar, click Text.
    The Import Letter of Credit Issuance Text tab displays.
    
    Figure – Import Letter of Credit Issuance: Free Format Window

12. Use the Texts tab to enter free text for specific categories and view and specify account details.
    Enter information in the following categories and in other custom-defined categories:

    • Goods Description
      Used to enter a description of the goods that display in the beneficiary’s invoice

    • Documents Required
      Documents for submittance

    • Additional Conditions
      Used to enter additional required documents that do not appear in the document selection list under the Terms section

    • Customer Contact Details
      Customer’s full address (up to 300 characters) or contact person.

    • Comments
      Used to enter additional comments
      Use the following icons to manage the Texts free textfield:

    • Zoom Text
      Enlarges the text box area enabling the user to edit or enter new data in the enlarged text box.

    • Open Clause Library
      Displays a list of defined clauses relevant for the window. The user copies the clause contents to the window by selecting the required clause.
      Length and width can be defined for each text field to limit the customer input. For each text, clauses can be defined.

Saving and Authorizing the Import L/C

1. Enter additional Deal information by clicking the appropriate option in the toolbar or by clicking the directional button to view a preceding window.

2. To send the transaction, when you are finished entering all L/C details into the application form, click Sign. The system runs internal checks to make sure the information is entered correctly. If any errors exist, you are notified about each error and prompted to correct it.

   • To release the transaction, click Sign and enter your password to sign.

3. If you do not want to send the transaction now, once you have amended the appropriate information, click Save to update the Deal in the Rabo eTrade database. Or Click Cancel to return to the previous page without saving any action on the current page.
   Amending a Letter of Credit
   Note: For actions relating to Detrimental Amendments, see Detrimental Amendments.
   To Amend a Letter of Credit:

4. From Panorama: Inquiry tab: Deal Select, select the L/C transaction you want to amend from the the Deal Select transaction list.
   
   Figure – Panorama Screen: Deal Select
   Alternatively, type the deal number in the Search field and click the icon. The selected transaction is highlighted and the Panorama toolbar becomes available.
   
   Figure – Additional Steps Dropdown: Amendment

5. From the Panorama toolbar, Additional Steps dropdown, select Amendment.
   The Letter of Credit Amendment General Details screen displays the selected Deal.
   
   Figure – amend Import Letter of Credit: General Details Tab
   Note: When viewing or editing a previously saved transaction, the amended fields are highlighted after the user saves the changes.
   The General Details tab is the first tab that is displayed on the screen.

6. Enter data in the relevant fields.
   The following are the General Details tab fields:

   • Reference Number
     A unique deal number specified at issuance (Establish New L/C). The reference number and deal number are specified at issuance and, therefore, cannot be modified at this stage.
     Note: A wildcard search is available for this field.

   • Currency
     Specifies the currency in which the L/C amount is expressed.

   • Original Amount
     The value of the goods. This field is protected.
     Note: Changes in the amount are only performed using the Increase/Decrease fields.

   • Increased Amount
     The amount the value of the goods has increased by (not the new L/C Amount).

   • Decreased Amount
     The amount the value of the goods has decreased by (not the new L/C Amount).

   • New amount
     The amended value of the goods.

   • Amount
     Terms Specifies whether the terms of payment must be exact or can vary. Valid payment terms include:
     +/- Tolerance – Payment terms may vary according to the upper and lower percentages specified in the Varied Amount % fields or the varied amount sum stated in the Varied Amount Sum field.
     Not Exceeding – The value of the documents may not exceed the L/C amount. (Refer also to UCP600, Article 30b and c).
     None (as per UCP)

   • Varied Amount Pct (+/-)
     The percentage variation by which the documents may vary from the L/C amount, when the terms are varied. For example, +12% or -7%.

   • 39C:Additl Amt
     Covered Other amounts covered by the L/C, e.g., legal fees, etc.

   • Expiry Country
     The country in which the L/C expires. It is important to the beneficiary since this affects the time available to present the required documents for payment.

   • Original Expiry
     Date The date the L/C expires. Once the date has passed, the beneficiary cannot present any additional documents. The user clicks the calendar icon to display the popup calendar and select the required date. The date is displayed in the text field and can be modified at any time.

   • Deal Number
     A unique deal number specified by the bank’s host. This field cannot be modified at the Amend stage of the application.

   • Address
     Full address of client.

   • L/C Type
     Specifies the type of L/C. This field is protected and cannot be modified at the Amend stage.

   • Amendment Charge Paid By
     Default is Applicant. If users wish to change, they may select Applicant, Beneficiary or Other Party from the dropdown menu.

   • Party Amendment Charges
     If user chooses Other Party in response to Amendment charge paid by”. This field becomes enabled and mandatory.

   • Applicable Rule Name
     When the option OTHER is selected, the user must specify here the Rule that will be applied.

7. Switch to the Settlement Data tab and enter data in the relevant fields to modify settlement instruction parameters, Or Select data from the dropdown lists.
   
   Figure – Amend Existing L/C: Settlement Data tab

   • Available With
     Specifies which bank is authorized to negotiate the documents on behalf of the beneficiary.
     Authorized banks include:
     Advising Bank – The Beneficiary’s bank
     Any Bank (only if the Settlement By is specified as Negotiation) The Exporter may present the Letter of Credit to any bank. The bank presented buys the title, pays the bearer and arranges reimbursement.
     Issuing Bank – The Applicant’s bank
     Specified Bank
     Note: Any Bank and Specified Bank options require bank name in Available With field.

   • Settlement By
     Specifies how the payment is made for the deal, and varies according to user selection.
     When Settlement By Payment is selected, the Sight button is checked automatically.
     When Settlement By Acceptance, Deferred or Mixed
     Payment is selected, the Time button is checked automatically.
     When Settlement By Negotiation is selected, the field method displays, indicating to the user to select whether it is a Sight or Time negotiation.

   • By Acceptance – Same payment logic as for the Deferred Payment option. In addition to the documents, the beneficiary presents a draft to the bank which, after acceptance by the bank, can be discounted by the beneficiary.

   • By Def(erred) Payment – Payment will be deferred to a later date according to specific terms, for example, 60 days after the Bill of Lading.
     Enter the relevant details into the Defer Payment Details text box.

   • By Mixed Payment – Combination of Sight and Time options.
     Enter the relevant details into the Mixed Payment Details text box.

   • Negotiation – Means the purchase of drafts and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due.

   • By Payment – Payment/s will be remitted upon the receipt of Shipping Documents complying with L/C terms

   • Drafts at – This field specifies the tenor of drafts to be drawn under the documentary credit.

   • Draft Drawn On
     Specifies the drawee of drafts under the L/C, if required. valid parties include:

   • Advising Bank – The Beneficiary’s bank

   • Issuing Bank – The Applicant’s bank

   • No Draft – When no draft is required (e.g.Letter of Credit available by payment or deferred payment.

   • Other – Any Intermediary or the Beneficiary Bank, if it is not the Advising Bank
     Note: There is a strict link between the selected Settlement by and the Draft Drawn On fields. For example, no value is allowed in the Draft Drawn On field for BY PAYMENT or BY DEF PAYMENT options in the dropdown list. Refer to your bank for further details.

   • Days for Presentation
     Number of days from B/L date that documents must be presented by.

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