The LC to be opened against 100% cash coverage based on the customer’s request for an irrevocable LC (LC application), and to receive all the documents in the customer’s name in accordance with the terms set out for the LC. It is considered as a service being provided by the bank against fees and service charges. The customer undertakes to pay the cost of goods plus the bank’s related charges. Upon retirement of the LC documents, the LC transaction is reversed and the payment is affected by debiting the cash margin on the respective payment due dates. There is no change from the current conventional processes, however the LC application should be in line with Sharia standards.