Documentary Credit - Appendix A (Brief History Of The Preparation Of The Standard)

Transcription

1. Shari ’ah Standard No. (14): Documentary Credit Appendix (A) Brief History of the Preparation of the Standard In its meeting No. (5) held in Makkah Al-Mukarramah during the period of 8-12 Ramadan 1421 A.H., corresponding to 4-8 December 2000 A.D., the Shari’ah Board resolved to give priority to the preparation of a Shari’ah Standard on Documentary Credit. On Monday 29 Ramadan 1421 A.H., corresponding to 25 December 2000 A.D., a Shari’ah consultant was commissioned to prepare a Shari’ah study and an exposure draft. In its meeting held in the Kingdom of Bahrain on 15 and 16 Safar 1422 A.H., corresponding to 9 and 10 May 2001 A.D., the Shari’ah Studies Committee discussed the juristic study of the standard and requested the consultant to incorporate the necessary amendments in the light of the conclusions of the Committee and the observations of members. The Committee also discussed the exposure draft in its 10th meeting held in the Kingdom of Bahrain on 14 Rabi’ I, 1422 A.H., corresponding to 6 June 2001 A.D., and made some amendments to the exposure draft. In its meeting No. (11) held in Jordan on 18 and 19 Jumada II, 1422 A.H., corresponding to 6-7 September 2001 A.D., the committee further discussed the exposure draft of the standard and made amendments that were deemed necessary in preparation of the submission to Shari’ah Board. The revised exposure draft of the standard was presented to the Shari’ah Board in its 8th meeting held in Al-Madinah Al-Munawwarah from 28 Safar to 4 Rabi’ I, 1423 A.H., corresponding to 1116 May 2002 A.D. The Shari’ah Board made further amendments to the exposure draft and decided to defer its discussion in the public hearing until views crystallize 407
2. Shari ’ah Standard No. (14): Documentary Credit on the issue of the contract that is relied upon for documentary credit in the context of the deferment of its two counter-values, known as Ta`jil alBadalayn. Badalayn The revised exposure draft of the standard was also presented to the Shari’ah Board in its 9th meeting held in Makkah Al-Mukrramah during the period of 11-16 Ramadan 1423 A.H., corresponding to 16-21 November 2002 A.D. The Shari’ah Board made further amendments to the exposure draft and decided that it should be distributed to specialists and interested parties in order to obtain their comments in preparation of its discussion in a public hearing. hearing A public hearing in Bahrain on 18 Dhul-Hajjah 1423 A.H., corresponding to 19 February 2003 A.D. The public hearing was attended by more than thirty participants representing central banks, institutions, accounting firms, Shari’ah scholars, academics and others interested in the field. The members of the Shari’ah Standards Committees (1) and (2), responded to the written comments that were sent prior to the public hearing as well as to the oral comments that were expressed in the public hearing. hearing The Shari’ah Standards Committees (1) and (2) held a joint meeting on 2 Muharram 1424 A.H., corresponding to 5 March 2003 A.D., to discuss the comments that were made during the public hearing as well as the observations received in writing. The two committees made amendments that were deemed suitable. The Shari’ah Board in its meeting No. (10) held in Al-Madinah AlMunawwarah during the period of 2-7 Rabi’ I, 1424 A.H., corresponding to 3-8 May 2003 A.D., discussed the amendments made by the Shari’ah Standards Committee, and incorporated the amendments deemed suitable. The Shari’ah Board unanimously adopted some of the items of the standard and some items were adopted by the majority vote of the members of the Shari’ah Board, as recorded in the minutes of the meetings of the Shari’ah Board. The Shari’ah Standards Review Committee reviewed the standard in its meeting held on Rabi’ II, 1433 A.H., corresponding to March 2012 A.D., in the State of Qatar, and proposed after deliberation a set of amendments 408
3. Shari ’ah Standard No. (14): Documentary Credit (additions, deletions, and rephrasing) as deemed necessary, and then submitted the proposed amendments to the Shari’ah Board for approval as it deemed necessary. In its meeting No. (41) held in Al-Madinah Al-Munawwarah, Kingdom of Saudi Arabia during the period of 27-29 Sha’ban 1436 A.H., corresponding to 14-16 June 2015 A.D., the Shari’ah Board discussed the proposed amendments submitted by the Shari’ah Standards Review Committee. After deliberation, the Shari’ah Board approved necessary amendments, and the standard was adopted in its current amended version. 409