UCP 600 and Incoterms

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  • Faculty
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UCP 600 and Incoterms

Description :

Programme and objectives :

In international trade counter party risk and country risk cannot be avoided. More than a century, instruments like letter of credit and bank guarantees are used by the companies for trade settlement and to mitigate their risks.

Some of the data available through market survey indicates that more than 70% of the documents presented under letter of credit are rejected at the first presentation. The survey also pointed out the reasons as:

  • Letters of credit accepted by the exporters have certain tricky conditions
  • Exporters are not fully aware about the UCP Rules while executing documents under letters of credit which results in discrepancies.
  • Importers are not able to prescribe appropriate documents to safe guard their interest at the time of establishing letter of credits.

This program will exclusively address the operational issues in letters of credit transactions with detailed discussions on important UCP 600 articles. This will enable the participants to interpret the implications of the terms and conditions in a letter of credit.

Detailed discussion of each document (Bill of Exchange, commercial invoice, bill of lading, airway bill, certificate of origin and Packing list) with commonly observed discrepancies will be taken up with practical exercise.

While finalizing the commercial terms in international trade, terms of delivery plays an important role in pricing their product and risk transference. By using appropriate INCOTERMS 2010 (CIF / CIP etc) both the parties are able to express clearly the responsibilities and obligations of each of them. This INCOTERMS is indicating the required documents for a particular transaction while structuring a letter of credit. Brief discussion on the implication of certain INCOTERMS 2010 will be addressed. International market has come out with a new product known as Bank Payment Obligation (BPO). ICC Paris has set the rules for this instrument. This instrument will be a mix of letter of credit and Bank guarantees. This instrument has come out into force from 1st July 2013. Highlight of this instrument with detailed explanation will be discussed. By participating in this workshop, participants will be able to enrich, with hands on experience in handling letters of credit transactions from the initial stages of finalizing the terms of delivery and terms of payment in a commercial transaction as well as update themselves with the latest developments which will result in reducing than transaction cost and better usage of these instruments.

Course Contents :-

Structuring a letter of credit transaction “significance of underlying contract in identifying terms of delivery, basic understanding of INCOTERMS 2010 – terms of payments, quick review of letter of credit operation, responsibilities and of different parties in a letter of transaction and types of letter of credit”.

How to structure import transaction through letters of credit, appropriate documents required for Letter of Credit and discussion on important UCP 600 Articles.

Documents in a letter of credit transaction “commonly observed discrepancies in draft (bill of exchange), invoice, transport documents, insurance and certificate of origin”.

Discussion on the proposed new instrument

  • Bank Payment Obligation

  • Uniform Rules for Bpo

Targeted Audience :-

  • Managers / seniors executive from

    • Finance
    • Accounts
  • Bank Staff from Importers

    • Trade Finance Teams
    • Commercial Banking
    • Exporters
    • Clearing House Agents (CHA)
    • International Logistics Companies
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How to register :-

Timings: 11:00 am – 1:00 pm

Fees :-

* For AECCI Members/ Management Students : Complimentary

For Non-members: Rs. 1000/- + service tax as applicable per person.

Registration closed on 15/03/16.

Interested participants may send in their confirmation to customercare@aecci.org.in / call us on - 022 4127 1145 / 46.

DD should be in the favor of “ASIAN EXPORTERS CHAMBER OF COMM AND IND”

Followed by Interactive Session, Networking, refreshment and lunch.

Management students must carry their college ID for complimentary.

Download Registraion Form: Download

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