The recent financial crisis is having an effect on international trade and the Letter of Credit (LC) as a secured payment instrument. To be successful in the trade arena and maintain the ability to perform trade business in these turbulent times, the LC is at its most value where the seller’s risk is moved from the buyer to a reputable bank. However, a seller may still face the risk of non-payment or delay in payment under the LC when there are discrepancies in the documents and the buyer has taken delivery of the goods.
As a seller, are you aware that most discrepancies and quality disputes are the result of improper handling procedures and documentation?
This 2-day programme provides you an insight into the proper procedures of negotiating for LC terms and more professional handling of LC documentation to reduce discrepancies in your next shipment and to increase your chance of receiving prompt payment.
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— Course Fee: RM 790.00 (Inclusive of 8% Service Tax) —
Understanding Risks in International Trade
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- Perimeters of International Trade
- Risks in International Trade Transaction Flow
- International Trade Rules & Regulations governing Terms of Sale
Letter of Credit – Overview
- Role and scope of UCP600
- Role of Letter of Credit in Payment Transactions
- Credit vs Contract
- Structure and main features of a Letter of Credit
- Diagrammatic process flow of Letter of Credit
- Legal relationship between parties to a Letter of Credit
- Documentation risks in Letter of Credit
The Steps in Establishing a Letter of Credit
- Establishing the Letter of Credit by buyer
- Presenting the documents by the seller
- Fees and cost – Who pays what
How to Reduce Discrepancies in Documentation
- Right Data in the Right Document
- What to Demand in Your Letter of Credit
- What to Avoid in Your Letter of Credit
- Proper Ways to Handle Your Documents
- Case study
Proper Procedures in Handling Orders and Shipments
- Who are involved?
- Sending out Quotation
- Confirmation of Order
- Preparing Shipment
- Preparing Presentation
- Follow Up Action
- Documentation and compliance skill sets
Minimize Documentation Risk
- Create awareness of trade risks in the organization
- Checklist of Rules to observe
- Implementing control & procedures
- Involving the right people