SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Process export letters of credit

SAQA US ID	UNIT STANDARD TITLE
10130	Process export 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 4	NQF Level 04	28
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Reregistered"		2018-07-01	2023-06-30	SAQA 06120/18
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2026-06-30		2029-06-30

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 export letters of credit, advise an export letter of credit, process the drawing documents and deal with any queries.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

This unit standard should be completed subsequent to the unit standard for processing import letters of credit. It is recommended that persons attempting this unit standard have had some experience in processing export letters of credit prior to being assessed on this unit standard.

Persons attempting this unit standard must demonstrate competence in at least four forms of export letters of credit.

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, transferable credit.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain rules and regulations related to export letters of credit.

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

Types of export 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 export letters of credit is identified and explained in line with the intention of the legislation, and bank policy and procedure in the manner required by the bank.

ASSESSMENT CRITERION RANGE

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 export letters of credit are understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

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 export letter of credit are understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Risks from the client's and the banks perspective, country risk, acceptable practice, insurance, payment terms, certain technical risks, 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 export letters of credit. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 5

5. The specific banks electronic process for processing export letters of credit is understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Access to the system, opening a record, printing records/ reports, making amendments, correcting mistakes, processing and capturing rules and regulations.

SPECIFIC OUTCOME 2

Advise an export letter of credit.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The letter of credit is received and recorded according to standard procedures.

ASSESSMENT CRITERION 2

2. The letter of credit is scrutinised for completeness and compliance with UCP 500.

ASSESSMENT CRITERION 3

3. The letter of credit is scrutinised for risk implications based on the terms and conditions of the credit.

ASSESSMENT CRITERION RANGE

Country risk, acceptable practice, insurance, payment terms, certain technical risks. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 4

4. Confirmation is arranged on request according to standard procedures.

ASSESSMENT CRITERION 5

5. The beneficiary is advised of the letter of credit and of possible risks and restrictions applicable to export letters of credit in the manner required by the bank.

ASSESSMENT CRITERION 6

6. Entries for charges, liabilities and exposure are prepared as appropriate and according to standard procedures.

SPECIFIC OUTCOME 3

Process drawing documents.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Documents presented by the beneficiary are checked for compliance with the letter of credit and according to UCP 500 and are referred for higher authority if required in terms of the bank's policy.

ASSESSMENT CRITERION 2

2. The findings are recorded and the beneficiary is advised as per standard procedures.

ASSESSMENT CRITERION 3

3. Discrepant documents are handled as required by the letter of credit, UCP 500 and the bank's standard procedures.

ASSESSMENT CRITERION 4

4. Clean documents are forwarded in terms of the letter of credit, UCP 500 and standard procedures.

ASSESSMENT CRITERION 5

5. Reimbursement is processed according to the terms of the letter of credit and the bank's policy.

ASSESSMENT CRITERION RANGE

Sight, USANCE and deferred payment drawings. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 6

6. Settlement is concluded in line with the client's instructions and the bank's procedures.

ASSESSMENT CRITERION 7

7. Credit authority is obtained for the release of payment prior to the receipt of reimbursement and in line with the bank's policy.

ASSESSMENT CRITERION 8

8. Relevant parties are advised according to UCP 500 and standard procedures.

SPECIFIC OUTCOME 4

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 that is accredited by the relevant ETQA.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

Working understanding of types of letters of credit.
Working knowledge of letter of credit issuing procedures and systems.
Working knowledge of internal and international payment system.
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.
Operation and computer system knowledge sufficient to locate the necessary information and complete the task/function.
General understanding of the specific risks, and relavant policies and laws relating to foreign exchange transactions.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

The learner is able to evaluate and process letters of credit.

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

UNIT STANDARD CCFO WORKING

The learner is able to use technology to process the drawing documents and payments.

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	20185	Further Education and Training Certificate: Banking	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	BANKSETA
Elective	96401	National Certificate: Export Administration	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "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.	AAR Trading and Projects (Pty) Ltd
2.	Advanced Assessments and Training (Pty) Ltd
3.	Africa Glory Empowerment Services
4.	Assured Vocational Skills Institute (Pty) Ltd
5.	Brainwave Project 707 Pty Ltd
6.	Brainwave Projects 707
7.	Compuscan Academy
8.	DC Academy
9.	Delmas Development Centre
10.	Fachs Business Consulting and Training
11.	Gigimo Tourism Academy
12.	MAT 007 (PTY) LTD
13.	Matibidi Raphela Investments (Pty) LTD
14.	Octomate Education Pty Ltd
15.	Octopus Training Solutions
16.	Production Management Institute of Southern Africa (Pty) Ltd
17.	RIAPHATHUTSHEDZA
18.	SA RESERVE BANK
19.	SIGNA ACADEMY (PTY) LTD
20.	Sinovuyolethu Trading (Pty) Ltd
21.	THE SHERQ CENTRE OF EXCELLENCE PTY LTD