Monday, 18 September 2017 11:32

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  • Wakalah Letter of Credit : - written undertaking by a bank given to the seller at a request and/ or the instructions of the buyer under wakala contract, to make payment or to accept and pay bills of exchange (Draft) drawn by the seller up to a stated sum of money within a prescribed time limit and against stipulated documents provided that the terms and conditions of the credit are complied with.
  • Murabaha Import Letter of Credit : - is a contract whereby CBO buys goods for the customer (applicant) and the customer agrees to later buy the goods from the CBO through a resale at a mark-up price.
  • Musharaka Letter of Credit: - is a contract whereby the value of the letter of credit issued by CBO and the profits of the partnership transaction are shared between CBO and the customer based on an agreed ratio.
  • Wakala Export Letter of Credit: - is a condition where the exporter appoints CBO as his/her agent to collect receivables on his/her behalf.
  • Wakala Documentary Collection (Wakala Cash Against Document - CAD): - It is type of transaction by which importer and exporter conclude a contract, accordingly the exporter deliver documents to the importer through his/her bank to buyer bank through which, the title for purchased goods is released to the buyer after the total sale price is collected in full.
  • Wakala Advance Payment : - a transaction in which an importer makes payment for items to be imported prior to the shipment of goods. The importer must trust that the supplier will ship the product on time and that the goods will be as their agreement because it creates a lot of risk factors for the importers.
  • Wakala Consignment Basis Payment (for Export) : - It is a transaction method in which the local exporter (a consignor) exports the goods to the foreign importer (a trustee) who pays (remit) the exporter only as and when the goods are sold.

 

 

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