Half Day Seminar – Revised Incoterms® Rules for 2010Introduction to Export OperationsExporting - Understanding the PaperworkDocumentary Letters of Credit, Drafts and BillsA Foundation Course in ImportingExport Controls and LicensingWinning Export BusinessAppointment and Management of Overseas Agents and DistributorsAdvanced Export PracticeBecoming An Authorised Economic OperatorClassification of Goods - Using Commodity and Tariff CodesInward Processing Relief
Using Documentary Letters of Credit, Drafts and Bills
Continuous Professional Development
This course is graded as entry level and would qualify for 10 Continuous Professional Development points. If required, the CPD certificate will be issued by the Institute of Export
Seminar Description:
The use of Letters of Credit has increased significantly by UK exporters and importers because of the global economic situation, political insecurity in some markets and the withdrawal of credit insurance cover.
The UK Government has now introduced The Letter of Credit Guarantee Scheme. The intention is to stimulate exports to emerging markets by sharing the credit risk associated with Letters of Credit from these markets. This should contribute to a further increase in usage.
The major international banks report that between 60% and 70% of documentary submissions by exporters are rejected on first presentation because of non compliance with the conditions of the credit.
We believe that the main causes of rejection are a lack of understanding of the underlying principles of a documentary letter of credit and a failure to construct a workable credit that directly relates to the sales or purchasing contract. These failures can lead to increased costs for all parties, loss of goodwill, delayed payment and possible default.
To use Letters of Credit effectively importers and exporters will need to fully understand the dynamics and terminology of a letter of credit, the role of each party, the importance of the shipping documents and the level of security offered.
This seminar will therefore examine LC process in detail and offer guidance on how to create a workable credit. It will consider the different interests of the exporter, importer and the banks and methods of reducing the risks for all parties.
It will also discuss methods of creating and collating accurate documents, the role of the draft (Bill of Exchange) and consider the options for negotiation of the credit and the current version of the rules that govern letters of credit (UCP600)
Duration:
One day
Training Methods:
The trainer will use oral and visual presentations, reference to fictitious and real examples and participatory exercises to illustrate course content. The delegates will receive copies of the presentation on which notes can be made together with copies of the workbook for future reference
Who Should Attend?
This course is suitable for both importers and exporters.The content will be relevant to field and office based sales staff, purchasing staff, shipping and despatch personnel, accounts and finance staff, customer services, freight forwarders. No previous knowledge or experience is necessary and it will be suitable for experienced personnel who require an update on the latest rules.
Seminar Content:
- Options available for international trade payments
- Terminology, structure, dynamics and content of a letter of credit
- Importance of the sales/purchasing contract and its role in creating a workable credit
- The roles and agendas of each of the parties involved in a documentary credit
- Why documents are required to satisfy the conditions of the credit
- Creation and completion of documents
- Confirmation of credits
- UCP 600 – The rules for letters of credit
- Electronic Credits
- Methods for the collation and submission of documents
- Options available in the event of rejection
- Charges and Commissions - who pays?
- Various types of credits – transferable, back to back, revolving, red clause, standby
- Bills of Exchange (Drafts)
- The roles of drafts in conjunction with documentary credits
- The options for negotiation of a letter of credit