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: 

Authorise and release an export letter of credit 
SAQA US ID UNIT STANDARD TITLE
10126  Authorise and release an export letter 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 5  Level TBA: Pre-2009 was L5  16 
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 check the advisement process, authorise and release drawing documents and attend to queries. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
This unit standard should be completed subsequent to the unit standards for processing import and export letters of credit, and reimbursement authorisation. It is recommended that persons attempting this unit standard have had some experience in processing letters of credit prior to being assessed on this unit standard. 

UNIT STANDARD RANGE 
Unconfirmed irrevocable letter of credit, confirmed irrevocable letter of credit, sight credit, acceptance credit, deferred payment credit, red clause credit, revolving credit, negotiation credit, standby credit. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Check the advising process. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The processing of the letter of credit is assessed for compliance with standard procedures and policies as required by the bank. 

ASSESSMENT CRITERION 2 
2. The processing accuracy of existing input is checked in line with standard procedures. 

ASSESSMENT CRITERION 3 
3. Compliance with internationally accepted practice is evaluated according to standard procedures. 
ASSESSMENT CRITERION RANGE 
UCP 500 and ICC Opinions.
 

ASSESSMENT CRITERION 4 
4. The identification of possible risk implications based on the terms and conditions of the credit is checked for appropriate management of the risk as required by the bank. 

ASSESSMENT CRITERION 5 
5. The notification to the beneficiary of identified risks and restrictions is checked for accuracy and completeness as required by the bank's policy. 

ASSESSMENT CRITERION 6 
6. Confirmation arrangements are checked in the manner required by the bank. 

ASSESSMENT CRITERION 7 
7. The recovery of revenue associated with the transaction is checked for accuracy and compliance with the bank's policy and procedures. 

ASSESSMENT CRITERION 8 
8. The decision is taken that the procedural requirements of the letter of credit advisement process have been met as required by the bank. 

ASSESSMENT CRITERION 9 
9. Entries for charges, liabilities and exposure are checked and authorised and released according to standard procedures. 

SPECIFIC OUTCOME 2 
Authorise and release drawing documents. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Documents are checked for compliance with the letter of credit and according to UCP 500 and ICC opinions. 

ASSESSMENT CRITERION 2 
2. Identified discrepancies are checked and handled as required by UCP 500 and the banks standard procedures, and the client/ bank is advised accordingly. 

ASSESSMENT CRITERION 3 
3. The reimbursement process is checked for accuracy and compliance with the terms of the letter of credit as required by the bank. 

ASSESSMENT CRITERION 4 
4. The settlement process is checked as required by the bank. 

ASSESSMENT CRITERION 5 
5. The required credit authorisation for the release of payment before reimbursement is obtained or referred or higher authorisation according to the bank's policies and procedures. 

ASSESSMENT CRITERION 6 
6. Drawing documents are authorised and released or referred for further authorisation in line with the bank's policies and procedures. 
ASSESSMENT CRITERION RANGE 
Sight, USANCE and deferred payment drawings.
 

SPECIFIC OUTCOME 3 
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 
Thorough understanding of types of letters of credit.
Thorough knowledge of the bank`s business allocation policy.
Thorough knowledge of letter of credit issuing procedures and systems.
Working knowledge of the Bills of Exchange Act.
Thorough knowledge of the INCO terms.
Thorough knowledge of URR 525.
Thorough knowledge of UCP 500.
Thorough knowledge and understanding of ICC Opinions.
Thorough knowledge of SWIFT message formats.
Thorough knowledge of applicable exchange controls.
Thorough knowledge of exchange rates and treasury procedures.
Thorough knowledge of internal and international payment systems.
Thorough knowldege of internal controls.
Thorough knowledge of trade finance.
Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function.
Thorough 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 letter of credit/amendment and exchange control regulations. 

UNIT STANDARD CCFO WORKING 
The learners is able to evaluate and process letter of credit/amendment. 

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

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  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
Elective  96401   National Certificate: Export Administration  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


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.
 
1. Chartall Business College 
2. Nedbank Ltd 
3. South African Reserve Bank 
4. The Institute of Literacy Advancement 



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.