The use of Letters of Credit (L/C) 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 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 L/C.
We believe that the main causes of rejection are a lack of understanding of the underlying principles of the L/C and a failure to construct a workable L/C 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 an L/C, the role of each party, the importance of the shipping documents and the level of security offered.
This seminar will examine the L/C 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 suggest methods of creating and collating accurate documents; explain the role of the draft (Bill of Exchange); consider the options for negotiation of the credit and the current version of the rules that govern letters of credit (UCP600).
•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 L/C •The roles and agendas of each of the parties involved in a L/C •Why documents are required to satisfy the conditions of the L/C •Creation and completion of documents •Confirmation of Letters of Credit •UCP 600 - The rules for letters of credit •Electronic L/C •Methods for the collation and submission of documents •Options available in the event of rejection •Charges and Commissions - who pays? •Various types of L/C - transferable, back to back, revolving, red clause, standby •Bills of Exchange (Drafts) •The roles of drafts in conjunction with the L/C •The options for negotiation of an L/C
The trainer will use oral and visual presentation, 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 a workbook for future reference.
Who Should Attend:
This course is graded as entry level and 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.
This course covers 2 modules.
The Foundation Award in International Trade consists of 10 modules, identified as important elements of any overseas business development and vital for key employees involved in the fulfilment of overseas trade. To help with individual's professional development in international trade functions, achieving a merit or pass on 6 of those modules will complete the Foundation Award (NVQ Level 2).
£281.25+VAT Members £375.00+VAT Standard
Discounts available when booking courses for all 6 modules of the Foundation Award.
In the event of a booking being cancelled prior to the scheduled course date, the following charges will apply:
30+ days notice = 25% 14-30 days notice = 50% <14 days notice = 100%
Bookings can be transferred to a later date but will incur a £10 administration fee.
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