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Letters of Credit – Operations

Date: 24 August 2020, Monday
Time: 9.00am to 5.00pm
Venue: Hotel Istana, Kuala Lumpur

OBJECTIVE

Upon the completion of the program, participants will be able to:

  • Understand the different modes of settlement in international trade
  • List the common documents used in trade
  • Recognize the various types of LCs available from banks
  • Identify the values and creative uses of LCs
  • Complete LC Applications and impose terms and conditions to beneficiaries correctly
  • Interpret SWIFT LCs and messages on LCs
  • Recognize the differences between conventional and Islamic LCs
  • Understand the international rules governing LCs
  • WHO SHOULD ATTEND?

    This course is designed for the Entrepreneurs; Managers; Account Executives; Import / Export and Sales & Marketing personnel who require knowledge of the operations of the various types of Letters of Credit (LC).

    COURSE OUTLINE
    Module Title
    Module 1 Introduction to International Trade

    A general introduction will be given on international trade, establishing and discussing:
  • the parties involved,
  • the different terminologies used for each of the parties in the transaction.
  • Module 2 INCOTERMS

    The functions of the main INCOTERMS are explained showing at which point delivery is made and the costs and risks involved to the buyer and to the seller at each stage of the transaction
    Module 3 Trade Documents

    As banks are involved in handling Letters of Credits (LCs), also known as Documentary Credits (DCs) and deal in documents only and not in the goods, it is of paramount importance that they and the traders themselves must fully understand the different types of trade documents and their purpose.

    Explanations will be given on the functions and features of the Bill of Exchange / Proforma invoice / Commercial Invoice / Bill of Lading / Certificate of Insurance and other documents the relevant ICC Rules applicable to them
    Module 4 Methods of Payment (how traders pay each other).

    The four methods of payment in international trade covered by: - Prepayment, Open Account, Documentary Collection and Documentary Credits and ‘sight’ and ‘usance’ terms are explained.
    Module 5 Documentary Credits (DCs) or Letters of Credit (LCs)

    Documentary Credits are defined and the various LC trade cycles are explained viz: Sight / Usance / Irrevocable / Confirmed / Transferable / Back to Back / Red Clause / Revolving & Standby LCs.
    Module 6 Various uses of LCs

  • Special types of LCs used to fulfill specific requirements such as Standby, Revolving, Red Clause, Transferable and Back to Back are discussed in full, and the benefits are highlighted.
  • How to transfer LCs
  • How to use an LC for Back to Back purposes
  • Module 7 Benefits of LCs to both buyers and sellers are explained
    Module 8 SWIFT LCs

    The features of ‘Mail’ and ‘SWIFT’ LCs are highlighted and explained
    Module 9 How to apply for an LC

    Briefing and exercise on the completion of an LC Application and issuance of the LC, based on a sample of a ‘pro-forma’ invoice. How LC may be available and the issuance of the LC is to test the participants understanding of the basic features of an LC.

    The procedures for the application, issuance and advising of the LC and the standard documents required are explained.

    The requirement of the following standard:
  • Instructions to exporter
  • Instructions to Negotiating Bank
  • Instructions to Reimbursing Bank, are also discussed
  • A checklist for LC Applicants will be provided
  • Module 10 Some innovative uses of LCs

    Some LC are used for purposes other than originally intended, these are being examined. How to transfer an LC
    Module 11 Questions and Answers

    TRAINER’S PROFILE

    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: RM901 per person - Register before 17 August 2020

    Normal price: RM1, 166 per person – SBL Claimable (includes Lunch, Tea-Breaks, Course Notes, Certificate of Attendance and 6% SST)

    *Group discount of 10% available (for 3 or more participants from the same company)

    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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