Introduction
A letter of credit (L/C) is one of many methods to provide protection to both parties involved in international transactions. L/C is a crucial part of the recipe when it comes to trade done outside borders. These documents have many useful features that make imports and exports easier and more reliable. The letter of credit (L/C) is grounded on international trade practices and regulations. It establishes what the parties are expected to do, what documents are required for the transactions, and the terms both exporter and importer agree beforehand. A letter of credit works as a guarantee that the transaction will be done as agreed.
Methodology
Exercise, PowerPoint Presentation, Question and answer session.
Contents of Training:
Various types of L/C
UCPDC-600
Irrevocable L/C
Payment methods without L/C
UPAS L/C
Back to Back L/C
Transferable L/C
Red clause & Green clause L/C
Add confirm L/C
Stand by L/C
Revolving L/C
SWIFT Code
Parties involve in the L/C
L/C works process
L/C amendment
Import without L/C
Advantages of L/C to the importers
Advantages of L/C to the exporters
Disadvantages of L/C to the importers
Disadvantages of L/C to the exporters
Risk of L/C
H.S Code
Confirming Bank
Negotiating Bank
Reimbursing Bank
Advising Bank
Issuing Bank
Documents for L/C opening
L/C Clauses
Practical exercise on L/C
Proforma Invoice (P/I)
Sales Contract
Shipping documents
Third party documents
Nostro & Vostro A/C
Offshore Banking
Negotiable & Non-negotiable documents
Insurance cover note & policy
D/P & D/A Payment
Bill of Entry/ Export
INCOTERMS- 2010
Local L/C
Lien Bank
Credit report
Sight Bill of Exchange
Usance Bill of Exchange
Discounting of bills
Guideline for L/C opening
IMP & EXP Form
Lecture Sheet & Handout Revision
Question & Answers session
Certificate Distribution