GoingToMeet

With the recent introduction of UCP 600, the importers, exporters and the banks had to revise their operations on the documentary credits.

It was found that more than 50% of the documents presented by the importers and exportersto the banks for payment under the letters of credit are rejected on their first presentation.

It has now become necessary for these importers and exporters to efficiently streamline their
operation on the documentary credits so as to save time, costs and unwanted litigations.

Otherwise, the negotiating bank’s ability to pay against documents submitted under a letter of credit depends entirely on the strict compliance of these documents with the terms andconditions of the credit and the provisions of the Uniform Customs and Practice for Documentary Credits.

It is the aim of this facilitator then to show how a letter of credit is workable, trouble-free and provides the security of payment for which the letter of credit was requested in the firstplace.

It is essential for the importers and exporters to understand the importance of the bank’s application to open a letter of credit, particularly with relevance to the new UCP 600. Thus working through the various sections of a bank’s application form for opening letter of credit
will help to reduce discrepancies and related unplanned costs.

Then, it will be found that more than 70% of documents presented will now be readily accepted on their first presentation.

~ Practical views from a previous Loan Manager ~

Objectives

* Understand Letter of Credit
* Types of Letter of Credit
* Mechanics on Letters of Credit for Export Executives, Exporters and Importers
* Compiling Documents under a Letter of Credit
* Legal implication of a Bill of Exchange and others
* Checklist on Application of a Letter of Credit
* Relevant INCOTERMS 2000
* Important Marine Cargo Insurances
* Documentary Credits for Collection
* Bank’s Documentary Collection/Negotiation Form
* ICC Uniform Rules for Collection
* Types of Guarantees and Bonds
* Appreciate new UCP 600 and ICC Uniform Rules for Collection