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 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
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 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  Reregistered  2023-06-30  BANKSETA 
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. Absa Learning & Development 
2. Bidvest Bank 
3. Chartall Business College 
4. Cornerstone Performance Solutions (Pty) Ltd 
5. Felix Risk Training Consultants 
6. Firstrand Bank - Benmore 
7. Nedbank Ltd 
8. The Facilitation Workshop 



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.