TYPE OF TIERS is the field which is used to define and calculate different rates for different tiers(slabs).

For Example

LC Amount = EUR 800,000.00
Rate = 0.2 permille (0.02 percentage)
Issu date = 26 May 2023
Expi date = 07 Feb 2024

If we are selecting Type of tiers as AMOUNT TIERS and defined rates as shown below
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system will calculate as stated below (Rate Defined in Permille basis)

From Eur 1 to 300,000.00 system will charge 0.2 Permille : 300,000.00 * 0.2/1000 = 60.00
Eur 300,000.00 to 500,000.00 System will charge 0.3 Permille : 200,000.00 * 0.3/1000 = 60.00
Eur 500,000.00 to 800,000.00 System will charge 0.4 Permille : 300,000.00 * 0.4/1000 = 120.00

                    Total Calculated Commission =  240.00 (60+60+120)

Since Calculation period = MONTH and settle period = UNTIL END

System calculates the total no.of.months in the LC

Total No.of Months = 9 (26 May'23 to 07 Feb'24)

Calculated Comm = 240.00 (60+60+120)

Total Commission = EUR 2,160.00 (240 * 9)

If we are selecting Type of tiers as MONTH and defined rates as shown below
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For 1st and 2nd month System will calculate 0.2 permille for 800,000.00
From 3rd to 5th Month system will calculate 0.3 permille for 800,000.00
from 6th to 9th Month System will Calculate 0.4 permille for 800,000.00

system will calculate comm as stated below

If we are selecting Type of tiers as QUARTER and defined rates as shown below
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Total No.of Quarters = 3 (26 May'23 to 07 Feb'24) in the contract and
Since Calculation period = MONTH and settle period = UNTIL END

For 1st Quarter System will calculate 0.2 Permille for 800,000.00
For 2nd Quarter System will calculate 0.3 Permille for 800,000.00
For 3rd Quarter System will calculate 0.4 Permille for 800,000.00

system will calculate comm as stated below

To Know about Different type of Settlement Period and different type of calculation method used in fee calculation, Please go through below articles.

Basic Fee Calculation and Different type of SETTLEMENT PERIODS available in DOKA

DOKA - Basic Fee Calculation and Different types of Calculation Period used