An Islamic bank has issued a Murabahah-based documentary letter of credit (LC)
Fatawa Question
An Islamic bank has issued a Murabahah-based documentary letter of credit (LC). The LC was based on a proforma invoice issued by the supplier containing description, quantity and price of the goods besides shipment date. The LC documents have been received in bank’s name as the purchaser (which is the Shariah requirement for the bank to enter into a Murabahah). However, the bank has noticed that the amount claimed under the commercial invoice drawn under the LC is higher than the amount mentioned in the proforma invoice, LC and the promise to purchase submitted by the customer. Shariah guidance is sought as to whether it is permissible for an Islamic bank to accept such discrepant documents, if the customer is ready to proceed with the transaction ; and purchase the same from the bank despite the said discrepancy.
Fatwa
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Publisher
Publication Date
2014-09-01
Country of Publication
Malaysia
Main Subjects
Economics & Business Administration
Islamic Studies
Data Type
Fatawa
Language
English
Record ID
BIM-783192
American Psychological Association (APA)
Hassan, Husayn Hamid. 2014-09-01. An Islamic bank has issued a Murabahah-based documentary letter of credit (LC). . Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783192
Modern Language Association (MLA)
Hassan, Husayn Hamid. An Islamic bank has issued a Murabahah-based documentary letter of credit (LC). Kuala Lumpur Malaysia : Islamic Finance News. 2014-09-01.
https://search.emarefa.net/detail/BIM-783192
American Medical Association (AMA)
Hassan, Husayn Hamid. 2014-09-01. An Islamic bank has issued a Murabahah-based documentary letter of credit (LC). Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783192
