RDC 001 – Managing Incoterms Shipping Document & Trade Payment

RDC 001 – Managing Incoterms Shipping Document & Trade Payment

Category:
In-House Programs/ Logistic & Quality/ Reports/Document/Contract/
managing incoterm shipping document _ trade payment

Duration: 2 Days
Lectures: InHouse
Certificate of Completion

INTRODUCTION

The programme enables participants to understand the international trade terms and import and export procedures and documentation from a practical point. Participants will be able to determine the trade terms, which offer the greatest cost savings, Avoid shipping errors, accurately describe the materials to be shipped and updates on the relevant Government Controlling Regulatory  Trade Requirement

Objective

  • Understand the purpose and scope of incoterms 2000
  • Update your knowledge on Incoterms 2000 and UCP 600
  • Understand the impact and export procedures and documentation from a practical perspective
  • Understand the various type the letter of credit(LC)
  • Learn the various steps of import and export procedures and documentation flow
  • Understand the need for banking facilities to meet the short term and the long term financial requirement of a business
  • Learn all the condition of documentary credit and collection in shipping
  • Grasp detailed insight into documentary credit or letter of credit

Who should attend?

Participants of all levels who are involved in Logistics, Purchasing, Freight Forwarding, Warehouse and Distribution.

CURRICULUM

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Day One

  • Why need for international trade?
    • Buffer stock
    • Government intervention
    • Welfarism
  • Shipping trade players
    • Shipper
    • Freight forwarder
    • Liner
    • Forwarding agent
    • Haulage
    • Container yard
    • Third party warehouse
    • Port of Lading

  • The supplier’s quotation
  • The proforma invoice
  • The purchase order
  • The sales confirmation
  • The commercial invoice
  • The packing list
  • The shipper’s export procedures and documentations
  • The export shipping instruction

  • Understanding Incoterms or international commercial terms
  • Incoterms 2000 – a standard trade definition
  • List of terms
  • Purpose of Incoterm
  • Categories of Incoterm
  • Division of the terms into four groups
  • Obligations, responsibilities and risks under the different terms

  • Group E – Departure
    • EXW (Ex Works)
  • Group F – Main carriage unpaid
    • FCA (Free carrier)
    • FAS (Free alongside ship)
    • FOB (Free on board)
  • Group C – Main carriage paid
    • CFR (Cost and freight)
    • CIF (Cost, insurance and freight)
    • CPT (Carriage paid to)
    • CIP (Carriage and insurance paid to)
  • Group D – Arrival
    • DAF (Delivered at frontier)
    • DES (Delivered ex ship)
    • DEQ (Delivered ex quay)
    • DDU (Delivered duty unpaid
    • DDP (Delivered duty paid)

  • Article 1-5
    • Definition, interpretation, independence of credits and underlying, contracts
  • Article 6-10
    • Availability, expiry date and place, obligations of issuing and confirming bank, advising credits and amendments
  • Article 11-17
    • Pre-advised credits, nominated bank, reimbursement arrangements, complying presentations and discrepant documents, waiver, original documents and notices
  • Article 18-28
    • Article 18 Commercial Invoice
    • Article 19-27 Transport Documents
    • Article 28 Insurance Documents
  • Article 29-37
    • Extension of expiry date, tolerances, partial drawings and partial shipments, disclaimers
  • Article 38-39
    • Transferability of credits and assignment of proceeds

Day Two

  • Definition of a documentary credit
  • Who is involved in a documentary credit transaction
  • Value of LC to the seller
  • Value of LC to the buyer
  • Availability of LC
  • LC application
  • Transmission of LC
  • Advising bank’s role and obligations
  • Confirmation of LC
  • Export documents under LC
  • Import documents under LC
  • Handling discrepancies
  • Settlement
  • Amendments
  • Reimbursement

  • Revocable and irrevocable
  • Transferable
  • Standby
  • Revolving
  • Red clause credit
  • Back to back
  • Deferred

  • Redefining the types of payment options
  • The advantages and disadvantages issues
  • The hidden costs and risks factors
  • Various implied understandings and effects

  • Risks of documentary collection
  • Advantages of documentary collection
  • DA and DP terms
  • Inward collection and outward collection
  • Bill of exchange – sight and term
  • Documentary collection instructions