Introduction

The letter of credit is an indispensable financing instrument used in international trade transactions. Parties to the letter of credit transaction have to abide by the rules governing its use. To many, such rules are confusing. Unfortunately, misinterpretation or misunderstanding of the terms may result in financial losses. Efficient processing of letters of credit documents is important in today’s business environment. Staff must be familiar with the UCP rules governing letters of credit transactions, the risks involved, rights and obligations of the various parties. Knowing how to process the documents correctly for letter of credit negotiation will help the company to save costs and minimise claims. This course aims to provide sufficient working knowledge to participants to enable them to minimise costs and delays in their business transactions.

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Curriculum Overview

Programme Structure

Coverage

• Problems, difficulties and risks in International Trade
• Role of logistics provider in International Trade
• Methods of financing in International Trade
• What is a Letter of Credit?
• What to do when you receive an LC
• What the seller and buyer wants
• Parties involved in an LC
• The mechanism of the banker’s LC
• The advantages and disadvantages of LC for sellers and buyers
• Presenting documents to the bank
• Understanding the related documentation and shipping issues
• List of common discrepancies
• Types of LC and their effects on users
• What is documentary collection?
• Notes on DP and DA

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Area of Studies

Designed For

Those who are involved in trade documentation, purchasing and supply, logistic operations, credit management, sales and marketing.


Certification

A Certificate of Attendance will be awarded upon successful completion with 75% attendance.

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Duration & Intake

Programme Duration

Duration

2 days (9 am to 6 pm), 16 hours

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Fees & Funding

	SLA Member Company	Non-Member	Self-Sponsored
Course Fee	$598	$748	$748
GST	$41.86	$52.36	$52.36
Application Fee	$32.10	$32.10	$32.10
Total Fee (payable to TLA)	$671.96	$832.46	$832.46
PIC Grant	60% (or available tax deductions/ allowances)	60% (or available tax deductions/ allowances)	N.A.

Payment will only be required after the course is confirmed.
(The status of the course would usually be advised one (1) month before the course start date.)

Payment mode (retail payments facilities are not available) :
Overseas – Telegrahic transfer
Local – Cheque or bank transfer