Using Documentary Letters of Credit, Drafts and Bills

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**2 MODULES – FOUNDATION AWARD IN INTERNATIONAL TRADE**

The use of Letters of Credit 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 LC

We believe that the main causes of rejection are a lack of understanding of the underlying principles of a documentary letter of credit and a failure to construct a workable LC 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 LC, the role of each party, the importance of the shipping documents and the level of security offered.

This seminar will examine the Letter of Credit 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)

Course Content:
*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 LC
*The roles and agendas of each of the parties involved in a letter of credit
*Why documents are required to satisfy the conditions of the LC
*Creation and completion of documents
*Confirmation of Letters of Credit
*UCP 600 – The rules for letters of credit
*Electronic LCs
*Methods for the collation and submission of documents
*Options available in the event of rejection
*Charges and Commissions – who pays?
*Various types of Letters of Credit – transferable, back to back, revolving, red clause, standby
*Bills of Exchange (Drafts)
*The roles of drafts in conjunction with Letters of Credit
*The options for negotiation of an LC

Training Methods:
The trainer will use oral and visual presentations, reference to fictitious and real examples and participatory exercises to illustrate course content. The delegates will receive copies of the presentation and 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.

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 admin fee.

Member Price £281.25 + VAT, Non-Member Price £375 + VAT

June 20, 2019

Using Documentary Letters of Credit, Drafts and Bills

at Dorset Chamber of Commerce & Industry

DATE & TIME

Date: June 20, 2019
Time: 09:30 - 16:30

LOCATION

Dorset Chamber of Commerce & Industry
Lower Ground Floor, Chamber House, Acorn Office Park, Ling Road, Poole BH12 4NZ
Telephone: 01202 714807

To book on to this event you will need your Dorset Chamber username and password. To get your password enter your username (this is your email address) and submit. A link to reset your password will be sent to your email.

If you are not a Dorset Chamber member and would like to join click here otherwise please complete the registration process when making a booking.

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