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Letters of Credit and Trade Financing

Date & Time:
20 & 21 July 2020, Mon & Tues, 9 am - 5 pm
Venue: Novotel Kuala Lumpur City Centre
[Training will be conducted as per HRDF’s Guidelines for Conducting Face-to-Face Training during the COVID-19 Pandemic]

INTRODUCTION

Trade can be very complex and the sole objective of receiving payment, or indeed the goods, by the parties involved are always in doubt, if the characters of the parties involved are questionable. In order that both parties may be protected, Letters of Credit issued by Banks, are used.

The Letter of Credit (LC) or the Documentary Credit (DC) is a very ancient payment device. Its present form and the rules that govern it evolved from the international sale of goods.

The LC Issuing Bank’s responsibilities to Seller and Buyer are:

  • Undertake to pay the SELLER subject to presentation of fully compliant documents.
  • Undertake to examine the documents for full compliance, prior to payment by the BUYER.
  • In recent decades the scope of LCs have changed from one that guarantees payment for a performance to one that guarantees payment for non-performance.

    The functions of the LC have also been creatively modified to cater for advance payments, immediate payments, delayed payments, revolving payments and also guaranteeing non-payments. A good knowledge of their operations would be an obvious advantage to traders.

    However, just a sound knowledge of LC operations alone is insufficient to conduct profitable business. The trader should also be aware of all the Trade Financing products available from banks, and of significant importance is to obtain the correct type/s, quantum and tenor of the product/s that its business requires.

    This course provides all a normal business need to know about Letters of Credit and Trade Finance.

    COURSE OBJECTIVES

    To equip participants with a comprehensive knowledge of:

  • LC Operations
  • ICC Rules (UCP600, ISBP) relevant to LCs
  • Various trade financing products offered by commercial banks.
  • Skills to structure or compute the type/s, quantum and tenor of each trade financing product required by a particular business.
  • OUTLINES

  • General introduction to trade
  • How payments are made – the ‘collection’ bill cycles (non LC transactions – BCs)
  • How payments are made under Documentary Credits (DCs) or Letters of Credit (LCs)
  • SWIFT LCs.
  • How to apply for / amend an LC.
  • Import Services - Shipping Guarantees - SGs
  • Import services - Inward bills drawn under LCs.
  • Import Financing Facilities - Bankers Acceptance.
  • Import Financing Facilities - Trust Receipts
  • Import Financing Facilities – Foreign Currency Trust Receipts (FCTR).
  • Import Financing Facilities - Invoice Financing Facilities - INF
  • Export services - Inward Letters of Credit.
  • Export Financing Facilities - Export Credit Refinancing (ECR).
  • Export Financing Facilities
  • Handling discrepant trade documents.
  • Bank Guarantees (BGs).
  • Structuring or computing trade financing requirements.
  • Do’s and don’ts in Trade Financing.
  • Questions and Answers
  • TRAINER’S PROFILE

    Mr. Noel Vong is our Senior Trainer and Senior Management Consultant. He has 40 years of banking experience with over 20 years in International Trade Finance. His experience in International Trade and

     

    Trade Finance includes the setting up of the Trade Bill Centers, customising Trade Finance manuals, developing Islamic Banking Trade Bill Products, centralizing trade processing activities, supervising marine and export-import operations, training staff and conducting Trade Seminars for public and bank customers.

    He is a retired Manager of a local & a foreign bank and has worked in all major towns in Malaysia. He has also worked in Banks in The Philippines, Cambodia, Hong Kong and Vietnam.

     

    Noel is an accomplished trainer cum consultant. Over the past 20 years, he has conducted many in-house and public Trade Finance courses in Malaysia and the Asean Region. For Islamic banking, he has rendered his expertise in developing and drafting Islamic Trade Finance products for commercial banks.

    COURSE FEES

    Early Bird Fee: RM1, 378 per person for 2 days

    Normal fee: RM1,855 per person for 2 days
    – SBL claimable (Inclusive of lunch, tea breaks, notes, certificate of attendance and 6%SST)

    *Group discount of 10% available (for 3 or more participants from the same company)
    #In-house training can be arranged at client’s premise. Please contact us at 03-8066 3107 for a customized proposal.

    ORGANISER

    Malaysian Export Academy
    No. 86, Jalan BP 7/8,
    Bandar Bukit Puchong,
    47120 Puchong, Selangor.

    Tel : 03 8066 3107
    Fax: 03 8066 6152

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