Trade Finance & Banking OfficerPosition Summary
Responsible for handling Import LCs, Local Export LCs (Saudi Arabia), Import Insurance, Insurance Claims, Sister Concern LC Support, and Banking Facilities management. Ensures compliance with LC terms, UCP 600, insurance requirements, and internal company policies while coordinating with banks, suppliers, customers, and internal departments.
A. Import Letters of Credit (LC)1. Pre-LC Activities
- Review purchase contract/proforma invoice.
- Confirm LC terms (Incoterms, shipment deadline, tolerance, packing).
- Coordinate with procurement and finance.
- Check company credit limits and bank facilities.
2. LC Opening
- Prepare LC application and documents.
- Verify HS codes, goods description (steel grade, size, quantity, MT).
- Ensure compliance with UCP 600 and company policy.
- Submit to bank and follow up for SWIFT issuance.
- Share LC copy internally and with supplier.
3. LC Amendments
- Review amendment requests (quantity, shipment date, price, documents).
- Evaluate logistics and finance impact.
- Submit amendment to bank and coordinate beneficiary acceptance.
4. Shipment Coordination
- Track shipment readiness.
- Ensure documents match LC (BL, invoice, packing list, COO, mill certificate).
- Communicate with shipping lines.
- Monitor vessel ETA and document follow-up.
5. Document Checking
- Review final documents for discrepancies (HS code, price, dates, weight, quantity).
- Coordinate corrections or acceptance.
- Approve documents for bank negotiation.
6. Bank Interaction
- Obtain document arrival notice.
- Apply for refinance and coordinate tenor approval (GM/AGM/Finance).
- Monitor bank charges and fees.
7. Payment & Settlement
- Ensure timely maturity payment.
- Coordinate fund allocation.
- Reconcile bank debit notes.
- Confirm supplier payment.
8. Customs & Logistics Support
- Release documents for clearance.
- Provide endorsed BL, COO, invoice to logistics.
- Handle issues to avoid demurrage.
- Coordinate with customs broker.
9. Reporting
- Maintain LC ERP/master sheet.
- Track amendments, expiry, documents.
- Provide outstanding LC and loan reports.
10. Compliance & Audit
- Maintain digital and physical archives.
- Support internal/external audits.
- Monitor vessel voyage and war zones.
11. Cost Control
- Send LC charges to accounts.
- Compare bank negotiation/advising fees.
- Analyze finance costs and identify savings.
12. Coordination
Liaise with suppliers, banks, shipping lines, customs brokers, procurement, finance, warehouse/logistics, and management.
B. Local Export LCs (Saudi Arabia)1. Pre-LC Stage
- Review customer PO and payment terms (Sight/Usance).
- Provide LC wording requirements.
- Coordinate with sales on pricing and delivery.
2. LC Receipt & Review
- Verify LC amount, delivery terms, documents, partial delivery, tenor.
- Request amendments if required.
3. Delivery Preparation
- Obtain clearance from accounts.
- Ensure goods and documentation match LC.
- Arrange transport documents if required.
4. Document Preparation
Prepare invoice, delivery note, packing list, chamber attestation (if required).
Check strictly against LC terms.
5. Bank Submission
- Submit within validity and presentation period.
- Follow up for acceptance.
6. Discrepancy Handling
- Review bank discrepancy notice.
- Coordinate acceptance or corrections.
7. Payment Follow-Up
- Track sight/usance LC.
- Arrange discount if required.
- Follow up for fund receipt.
8. Post-Delivery
- Update LC tracking sheet.
- File documents.
- Inform collection team of status.
9. Communication
Coordinate with local banks and customer finance/procurement teams.
10. Compliance & Reporting
- Ensure document compliance.
- Maintain export LC report.
- Report collections and close paid LCs.
C. Import Insurance1. Before Shipment
- Review Open Marine Cargo Policy.
- Collect shipment details (LC/Invoice no., ports, cargo, Incoterms).
- Calculate insured value (CIF +10%).
- Submit declaration and obtain certificate/cover note.
- Verify Institute Cargo Clauses, war & strike, storage transit.
- File documents and update tracker.
- Send debit note to finance.
D. Insurance Claims (Damage/Shortage)1. Notification
- Notify insurer within 7 days.
- Inform shipping line.
2. Survey
- Arrange surveyor at port/warehouse.
- Obtain survey report.
3. Claim Documentation
Compile policy, invoice, packing list, BL, damage certificate, photos, survey report, claim bill, subrogation letter.
4. Assessment
- Verify weight differences (MT).
- Identify damage cause (sea, rust, short landing, transport).
- Prepare internal calculation (QC).
5. Claim Submission & Follow-Up
- Submit full claim file.
- Follow up until settlement.
- Reconcile and close claim file.
E. Sister Concern Support (Local LCs)1. Export Documents
- Prepare and check LC compliance (quantity, description, dates, signatures).
- Submit originals to bank.
2. Negotiation & Discrepancy Handling
- Submit within validity.
- Handle discrepancies and amendments.
- Follow up for acceptance/payment.
3. Payment Monitoring
- Track sight/usance maturity.
- Verify credit and reconcile charges.
- Share payment advice.
4. General Coordination
Act as liaison between sister concern, banks, sales, and group finance.
F. Banking Facilities1. Assessment
- Identify need for LCs, loans (Bai Ajal), guarantees.
- Obtain management approval.
2. Bank Selection
- Compare rates, charges, collateral, limits.
3. Activation
- Record facility limit, tenure, fees, expiry.
4. Reporting
- Prepare LC utilization, loan schedule, guarantee exposure reports.
5. Renewal/Amendment
- Request renewal before expiry.
- Negotiate revised terms.
- Execute updated agreement.
6. Post-Closure
- Reconcile charges and interest.
- Update ERP/Excel.
- Collect promissory note and signed agreement copy.
- Archive facility documents.
