An Islamic bank has been approached by a customer seeking import finance through letter of credit

Fatawa Question

An Islamic bank has been approached by a customer seeking import finance through letter of credit. Generally, Islamic banks purchase goods from a supplier and sell the goods to the customer by way of Murabahah. Shipping documents including a commercial invoice and bill of lading are required to be issued in the name of the bank, evidencing that title and possession of the goods have been passed to the bank being a purchaser. However, in the subject scenario, the customer is a sole distributer of the supplier and it has been communicated by the customer that the supplier cannot issue the invoice in the name of the bank. Shariah guidance is sought to resolve the above situation.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2013-07-17

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-784608

• APA
• MLA
• AMA