Letters of Credit
Letters of Credit
A part of the Arzesh system is dedicated to handling processes related to the Letters of Credit product. Given that the primary basis of international trade and interactions between buyers and sellers is Letters of Credit, and this matter, besides international regulations, is subject to domestic currency conditions and policies from the order registration stage in the Ministry of Industry, Mine and Trade (MIMT) to customs clearance, the Arzesh system has been designed to allow bank users in branches and foreign exchange headquarters to perform related operations within the system. They can also record the necessary information for submission to external authorities and respond to both internal and external inquiries.
Since payments related to the import of goods during sanctions have changed from Letters of Credit to types of remittances, and the Central Bank has specific instructions in this regard, the import of goods and foreign exchange services system includes various authorized payment tools such as Letters of Credit, documentary collections, and commercial remittances.
The system encompasses activities related to order registration operations, Letters of Credit, documentary collections, and commercial remittances. It involves registering complete file information, including commercial card, proforma invoice, insurance policy, order registration and amendments, credit approvals, currency provision, opening of Letters of Credit/commercial remittances/documentary collections and their amendments, along with necessary controls to prevent any discrepancies in the information sent to the Central Bank via various system forms.
Furthermore, registering the transaction information of documents in single or multiple stages by specifying whether the documents are confirmed or collected, and recording the type of collection, is possible within the system. The deposit and delivery of documents to the customer, as well as payment information to the correspondent for prepayment, shipping documents, etc., are recorded in the system. Given the importance of fulfilling currency obligations for the import of goods, information on the importer’s currency obligations is also registered within the system according to the types of obligations defined by the Central Bank, allowing for the inquiry of the status of customer obligations.
The submission of Samtak and Samat Letters of Credit information to the Central Bank is also facilitated in this section.