Are you receiving letters of credit from the Middle East, Indian subcontinent, Africa or the Far East? Are you having difficulty setting up workable letters of credit? Do your letter of credit documents regularly contain discrepancies?
The workshop will include a range of recent examples of letters of credit with a focus on how to avoid the common pitfalls. You will be working through case studies based on recent scenarios making the training highly topical and relevant. The course is delivered in an interactive, practical and engaging format by an experienced practitioner in letters of credit.
The workshop is aimed at all key people involved in handling letters of credit, ie: export sales, project managers, export managers, administrators, purchasing, finance teams, shipping / logistics and customer services. You will learn what you can do, in practical terms, to improve letters of credit performance and ensure good management and collection mechanisms.
By the end of this course you will be able to:
- Use a template to help you improve the content of letters of credit opened in your favour.
- Negotiate the most favourable letter of credit terms for an exporting business
- Check incoming letters of credit, using a reliable checklist.
- Locate the key articles contained within the UCP 600 rules and understand how they affect exporting companies.
- Prepare and check letter of credit documents which comply with the most challenging of terms minimising the need for costly amendments.
- Identify and minimise the letter of credit fees charged by banks and accurately factor the costs into the selling price
Understanding the Key Export Sales Risks
- Buyer, political, bank and performance risks
- Current 'hot topics' affecting internationally trading companies dealing with banks
Understanding the Letters of Credit Process
- What is a letter of credit?
- The parties involved and their roles
- Confirmed letters of credit – when to use them and understanding the cost implications
- The document flow
Using Letters of Credit
- What are the advantages and disadvantages?
- Understanding the typical letter of credit format - a walkthrough of SWIFT MT 700
- How to help buyers improve the contents of letters of credit opened in the exporter's favour
- Common terms, conditions and documentary requirements
- Incoterms and how they fit with letters of credit - some do's and don'ts
- A guide to bank charges
- Checking a letter of credit upon receipt
- Practical exercises and case studies based on real life examples of letters of credit
UCP 600 & ISBP 745
- The Uniform Customs and Practice for Documentary Credits, publication 600 explained
- The key points contained in UCP 600 and the relevance of exporters
- An overview of the guide for bank document examiners: International Standard Banking Practice for the Examination of Documents under UCP 600 - ISBP 745
Presenting Documents to the Bank
- Best practice for preparing complying documents
- Common problems and how to avoid them
- Document checking exercise
- What to do in the event of discrepancies