The Letter of Credit (LC) or the Documentary Credit (DC) is a very ancient payment device. Its present form and the rules that govern it evolved from the international sale of goods. In recent decades the scope of LCs have changed from one that guarantees payment for a performance to one that guarantees payment for non performance. The functions of the LC have also been creatively modified to cater for advance payments, immediate payments, delayed payments, revolving payments and also guaranteeing nonpayments. The Incoterms defines the tasks, costs and risks involved in the delivery of goods from sellers to buyers and, as always, have to be revised / updated to reflect practices in the sale of goods. The came into effect on 01 st January, 2011, and the changes are being highlighted in this course. Objective This course is to provide participants with a comprehensive knowledge of Letters of Credit Operations and the main features of. Who Should Attend This course is designed to enable participants to perform their daily duties with accuracy and understanding but not (in some cases) detailed enough to pass examinations. It is therefore suitable for the Entrepreneurs; Managers; and executives who require knowledge of the operations of the various types of Letters of Credit (LC) and an idea of the functions of the INCOTERMS. Dun & Bradstreet a Global network and world leading provider of commercial credit. Apart from Business Education Services (BES) which provides Training and Seminar specializing in Credit Management Program, D&B offers an integrated set of business information which includes Credit Risk Management Services, Business Marketing Services, Receivables Management Services and Market Intelligent Services. Reduce your credit risks with the global information in D&B reports to make more informed decisions on your potential business transactions.
Course Outline 1. Introduction to international trade General introduction to international trade, establishing and discussing: the parties involved, the different terminologies used for each of the parties in the transaction. 2. Methods of payment and challenges to international trade. The four main methods of payment in international trade, covered by:- Prepayment, Open Account, Documentary Collection and Documentary Credits, sight and usance terms. 3. INCOTERMS The functions of the 11 INCOTERMS 2010, showing at which point delivery is made, and the costs and risks involved to the buyer and to the seller at each stage of the transaction. 4. Common Trade Documents Banks are involved in handling International Trade and Letters of Credit (LCs), also known as Documentary Credits (DCs) which are the basic instruments in settling International Trade. Banks deal in documents only and not in the goods, it is therefore of paramount importance that they and the traders themselves fully understand the different types of trade documents and their purpose/s. Explanations will be given on the features and functions of the Pro-forma Invoice / Commercial Invoice / Certificate of Insurance / Bill of Lading / Bill of Exchange, and other documents, and the relevant ICC Rules applicable to each of them. 5. Documentary Collections (non-lc Bills / Transactions). These transactions do not involve LCs and the following are covered briefly: The duties and responsibilities of each of the parties to the collection The advantages and disadvantages in trading under collections
6. Documentary Credits (DCs) or Letters of Credit (LCs) transactions: This session covers: The features, uses and trade cycles of all the different types of LCs, namely: Irrevocable; Sight; Usance; Red Clause; Transferable; Back-to-Back; Revolving, Standby and Confirmed LCs. The specific requirements and benefits in using each of them. How to transfer LCs How to have an LC confirmed, and Some innovative uses of LCs 7. SWIFT LCs This session covers the differences between Mail and SWIFT LCs and how to decipher SWIFT LCs. 8. How to apply for an LC Briefing and exercise on the completion of an application and the issuance of an LC, based on a sample of a pro-forma invoice. Discussions on how an LC may be available (the exercise on the issuance of an LC is to test the participants understanding of the basic features of an LC). Examination of the procedures for the application, issuance and advice of the LC, the standard documents required and the standard instructions to: o Exporter o Negotiating Bank, and o Reimbursing Bank. 9. Terms under which LCs may be amended 10. Overview of the ICC Rules applicable to export bills negotiation. 11. Handling discrepancies in documents and measures that can be taken on discrepant documents. 12. Dos and don ts in International Trade. 13. Questions and Answers
The Trainer Mr Noel Vong Noel Vong Kieon Kin began his career in a bank. During his 40 years in that bank he worked in various capacities, with most of the time spent in Trade Financing and Marketing. He was a Manager in some of their branches and was also, at one time, a Senior Trainer of that Bank. After his retirement from that bank he joined other banks and had worked in the Philippines, Vietnam and Cambodia. He has lectured extensively on Trade Finance for the staff of a number of commercial banks as well as conducting Trade Seminars for their customers, both locally and overseas. His knowledge of Trade Finance covers both Conventional and Islamic Trade Financing Concepts and during his terms in banks, he has not only set up or reorganized their International Trade Centres but has also written their Procedures and Operations Manuals, because he is conversant with the technical and finer operational details of the subject. Vong is an Associate of the Institute of Bankers, London
Date: Monday, 26 August 2013 Duration: 1 day Venue: Furama Hotel, Bukit Bintang (To be confirmed) Fee: [ ] RM 830 for D&B Subscriber / D&B Affiliate [ ] RM 930 for Non-subscriber (Include material, refreshments and lunch) Company Information Name of Company: Address: EARLY BIRD Submit your registration before 26 th July 2013 to receive a 10% off usual fee GROUP REGISTRATION Send 2 or more participants to enjoy a 10% off usual fee Completed registration form and email to Krisna.Tjong@dnb.com.my Telephone: Contact Person: Email Fax: Participant s Profile Name 1: Name 2: Name 3: Payment Information [ ] D&B subscription units (Subscriber ID: ) [ ] *Cheque. Please made payable to: Dun & Bradstreet (D&B) Malaysia Sdn Bhd Bank: Cheque No: Registration Terms & Conditions 1. A seat will be reserved upon receipt of completed registration form, and confirmation of seat upon payment received 2. A substitute participant is welcome at no charge should you not be able to attend. Please provide the necessary details. Only cancellation made 20 working days before commencement is entitled to full refund of seminar charges. No refund thereafter including no show during day of event. A complete set of materials will however be sent to you. 3. For D&B subscribers opting to pay through D&B subscription units, deductions would be made upon receipt of completed registration form. In the event of any postponement/cancellation of seminar by D&B, or withdrawal from seminar by participant(s), unit deducted would not be credited. However, a replacement of seminar (of same value) would be given and to be utilized within 6 months. 4. D&B reserves the right to postpone or cancel the seminar for reasons whatsoever. In such a case, D&B will provide full refund to registrants who have made Cheque payment towards the event and such registrants shall have no claims against the company. 5. D&B reserves the right to change venue due to unforeseen circumstances. 6. D&B shall not be responsible for any additional expenses incurred by any participant(s) in the course of attending the program. I, the undersigned, have read and understood the Registration Policy and accept the terms contained therein. Name of Authorized Signatory: Company Stamp: Designation: Signature: