SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Process import letters of credit 
SAQA US ID UNIT STANDARD TITLE
10128  Process import letters of credit 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03  18 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this unit standard will be able to explain rules and regulations related to letters of credit/ amendment, receive an application for a letter of credit/amendment, prepare a letter of credit/amendment for issue, process the documents, deal with discrepant documents and process the payment. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
This unit standard should be completed subsequent to proven competence in the unit standards for purchasing and selling foreign instruments and processing inward and outward foreign documentary collections. It is recommended that persons attempting this unit standard have had some experience in processing import letters of credit.

Persons attempting this unit standard must demonstrate competence in the given range of the forms of import letters of credit. 

UNIT STANDARD RANGE 
Sight credit, acceptance credit, deferred payment credit, negotiation credit. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Explain rules and regulations related to import letters of credit/amendment. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The nature of the product is understood and explained according to the specific bank's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Including but not limited to types of import letters of credit, the nature of the underlying transaction, how the product works, the process for payment, the parties to the transactions and their rights and obligations, terms and conditions, pricing, features and benefits. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The relevant South African legislation affecting import letters of credit is identified and explained in relation to import letters of credit in line with the intention of the legislation, and bank policy and procedure in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Including but not limited to Exchange Control regulations, Bills of Exchange Act. Evidence of competence across the full range is required
 

ASSESSMENT CRITERION 3 
3. The relevant international regulations and accepted practice governing import letters of credit are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Including but not limited to URR 525, UCP500, INCO terms, ICC opinions, international payment systems, SWIFT messages and format. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The risks and risk management processes associated with the import letter of credit are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Including but not limited to risks from the client's and the banks perspective, insurance, exchange rate risk credit risk, risk associated with non-compliance with the terms and conditions of the letter of credit, basic risk management practices associated with import letters of credit Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 5 
5. The specific banks electronic process for processing import letters of credit is understood and explained. 
ASSESSMENT CRITERION RANGE 
Including but not limited to access to the system, opening a record, printing records/ reports, making amendments, correcting mistakes, processing and capturing rules and regulations.
 

SPECIFIC OUTCOME 2 
Receive an application for a letter of credit/amendment. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The client's application for the letter of credit /amendment is processed according to the bank's policies and procedures. 

ASSESSMENT CRITERION 2 
2. The application for the letter of credit/amendment is checked for compliance with Exchange Control regulations or referred for approval as required by the bank. 

ASSESSMENT CRITERION 3 
3. The application for the letter of credit/amendment is scrutinised for completeness, logical consistency, compliance with UCP 500 and as required by the bank. 
ASSESSMENT CRITERION RANGE 
Including but not limited to signature confirmation, proof of insurance, check against copy of pro forma invoice, receipt/holding of required indemnity. Evidence of competence across the full range is required
 

ASSESSMENT CRITERION 4 
4. Credit authority is received from the credit department according to standard procedures. 

ASSESSMENT CRITERION 5 
5. Charges are levied according to the bank's policy. 

ASSESSMENT CRITERION 6 
6. Liability and exposure entries are prepared as required by the bank. 

SPECIFIC OUTCOME 3 
Prepare the letter of credit for issue. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The correspondent bank to be used as the advising, negotiating, reimbursing and/or confirming bank is allocated according to the bank's policy. 

ASSESSMENT CRITERION 2 
2. The approved/corrected letter of credit is recorded in line with standard procedures. 

ASSESSMENT CRITERION 3 
3. The application for the letter of credit is forwarded for authorisation according to standard procedures. 

ASSESSMENT CRITERION 4 
4. Once authorisation has been received, the reimbursement authorities are drafted and captured according to standard procedures. 

SPECIFIC OUTCOME 4 
Process the drawing documents. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The advice of acceptance or payment is handled according to standard procedures. 

ASSESSMENT CRITERION 2 
2. The documents from the presenting bank/beneficiary are checked for compliance according to UCP 500 and the bank's policy. 
ASSESSMENT CRITERION RANGE 
Including but not limited to the terms of the letter of credit, advice of negotiation/payment/acceptance.
 

ASSESSMENT CRITERION 3 
3. Accepted/clean documents are handled in line with standard procedures. 

ASSESSMENT CRITERION 4 
4. Advice of discrepant documents is processed according to standard procedures. 

ASSESSMENT CRITERION 5 
5. Discrepancies identified in the documents are dealt with in terms of UCP 500 and the bank's policy and procedures. 

ASSESSMENT CRITERION 6 
6. The client is contacted for authorisation of discrepancies, and acceptance in writing is awaited according to the bank's policy. 

ASSESSMENT CRITERION 7 
7. Discrepant documents received and not accepted are processed as required by UCP 500, the bank's policies and procedures and in terms of the letter of credit. 

ASSESSMENT CRITERION 8 
8. Advice to all parties is prepared according to the terms of the letter of credit, UCP 500 and standard procedures. 

SPECIFIC OUTCOME 5 
Process the payment. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Instructions for the recovery of funds are obtained from the applicant in terms of the letter of credit and according to the bank's procedures. 

ASSESSMENT CRITERION 2 
2. Preparation for the recovery of funds is arranged timeously in line with the client's instructions and the bank's procedures. 
ASSESSMENT CRITERION RANGE 
Drawing currency under a forward exchange contract; recovery of funds from the client's foreign currency account; purchase of forex from treasury on the client's behalf; recovery of funds from a Rand account. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 3 
3. Charges are calculated and entries prepared in the manner required by the bank. 

ASSESSMENT CRITERION 4 
4. Adjusted liabilities and exposure entries are prepared as required by the bank. 

ASSESSMENT CRITERION 5 
5. Advice to all parties is prepared according to the terms of the letter of credit, UCP 500 and standard procedures. 

SPECIFIC OUTCOME 6 
Attend to queries. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The nature of the query received is identified according to the bank's procedures. 

ASSESSMENT CRITERION 2 
2. Queries are attended to as required by the nature of the query and the bank's procedures. 

ASSESSMENT CRITERION 3 
3. All queries are handled in a timely manner that promotes customer service. 

ASSESSMENT CRITERION 4 
4. Administrative tasks related to the query are completed according to the bank's procedures. 

ASSESSMENT CRITERION 5 
5. Unresolved queries are escalated to the appropriate authority as required by the bank's policy. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1 Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.

2 Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.

3 Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution which is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
Working understanding of types of letters of credit.
Working knowledge of the bank`s business allocation policy.
Working knowledge of letter of credit issuing procedures and systems.
Working knowledge of internal and international payment systems.
Working knowledge of the Bills of Exchange Act.
Working knowledge of INCO terms.
Working knowledge of ICC Opinions.
Working knowledge of URR 525.
Working knowledge of UCP 500.
Working knowledge of internal controls.
Working knowledge of SWIFT message formats.
Working knowledge of exchange rates and treasury procedures.
Working knowledge of relevant exchange control regulations.
Working knowledge of trade finance.
Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function.
General understanding of the specific risks, and relevant policies and laws relating to foreign exchange transactions. 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
The learner is able to understand the relationship between the letter of credit and exchange control regulations. 

UNIT STANDARD CCFO COMMUNICATING 
The learner is able to communicate effectively when handling applicable queries. 

UNIT STANDARD CCFO SCIENCE 
The learner is able to use technology to process the drawing documents and payments. 

UNIT STANDARD CCFO CONTRIBUTING 
The learner is able to evaluate and process letters of credit. 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Elective  20184   National Certificate: Banking  Level 3  NQF Level 03  Reregistered  2023-06-30  BANKSETA 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
NONE 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.