(4-14) Deals contracted prior to Murabaha contract between the client and the bank
(4-14) Deals contracted prior to Murabaha contract between the client and the bank
Question
Documents under collection under the bank's name were received which are related to a client without signing an application and purchase promise. Can this be considered as Murabaha or not?
If the answer is negative, what are the required procedures to consider the transaction as Murabaha and hence be permissible according to Shari'ah?
Answer:
Goods whose documents are sent to a bank for collection upon request of a client is not considered as Murabaha transaction unless Murabaha requirements are fulfilled before shipment and dispatch of documents. In this particular case the client did neither sign a purchase promise nor a purchase request and the bank has not been consulted in the sale operation since its inception.
Source:
Fatwas of Shari'ah Board of Qatar Islamic Bank, Fatwa No. (42).
(4-15) Commodity storage expenses and demurrage penalty etc. Question -1
With regard to Murabaha sales, documents are handed over to the buyer to enable him receive the goods. In some cases, the goods would be subject to demurrage charges payable to the customs authority as a fine for delay in receiving the goods.
The question is: Who bears payment of such demurrage fine, the buyer or the
Kuwait Finance House?
Answer:
If default was caused by the seller i.e. The Kuwait Finance House, then, it shall pay the fine, but if it was from the buyer, then the later shall be liable for the fine.
Source:
Kuwait Finance House, Book of Fatwas in economic issues, Parts (1), and (2), Fatwa No.(129).
Question -2
In Murabaha transaction, demurrage charges have been paid for goods imported from Italy and arrived at Kuwait Port. However, due to delay of documents, demurrage charges have been levied. The delay was caused by the foreign bank and the post office. The buyer is refusing to pay such charges. What is the Shari'ah solution hereto?
H.E. the President has raised the following question: What is the relationship between the exporter and the Kuwait
Finance House?
Answer:
The Kuwait Finance House shall bear the demurrage charges which were due before concluding the contract between it and the promising buyer and prior to enabling the later to receive the goods, even if it was known later after the contract signing and enabling. Such charges which are paid by the Kuwait Finance House should not be added to the price in Murabaha sale because it The Kuwait Finance House shall bear the demurrage charges which were due before concluding the contract between it and the promising buyer and prior to enabling the later to receive the goods, even if it was known later after the contract signing and enabling. Such charges which are paid by the Kuwait Finance House should not be added to the price in Murabaha sale because it
Source:
Kuwait Finance House, Book of Fatwas in economic issues", Parts (1), and (2), Fatwa No.(447).
Question (3):
Is it permissible to consider storage charges of goods imported on Murabaha basis as part of the cost?
Answer:
Yes, it is permissible to consider storage charges of goods imported on Murabaha basis as part of the cost.
Source:
Fatwas of Shari'ah Board of Qatar Islamic Bank, Fatwa No. (43).
(4-16) Selling goods on Murabaha before possession Question:
Venture Gulf Company, which is a client of our bank contacted, and offered us to sell a quantity of goods in a package deal. We used previously to buy from it the same goods over 3 months provided that we store them in the promising buyer's stores, Steel Structure Co."FASCO", because the bank have no stores. We later on sell part of these goods on Murabaha monthly in favour of the promising buyer, FASCO steel structure Company over a period of
3 months. Kindly advise us of the Shari'ah opinion thereto.
Answer:
It is permissible to complete this transaction pursuant to Salam sale provided that goods specifications and delivery time are defined and on basis of advanced payment and deferred delivery of goods. It is not permissible to make an advance sale to"FASCO" Company before the bank receives the goods first.
Source:
Fatwas of Shari'ah Board of Qatar Islamic Bank, Fatwa No. (48).