Do you or your staff need to attend a training programme on letters of credit, cargo insurance or Incoterms 2010?
Check out the following questions and find out for yourself:

  1. What do you understand by the expression ‘terms of shipment’? Which rules of the ICC apply to them?
  2. For examining bank: Where there are more details in documents presented than specified in the LC, will the presentation be deemed to be discrepant?
  3. LC place of expiry is in the issuing bank’s country and the documents are to be sent in two consecutive mails. When the second mail reached the issuing bank, the LC has expired. Under the UCP, can the issuing bank refuse the documents?
  4. Under an LC, when does a bank ‘honour’ and when does it ‘negotiate’ a complying presentation? What is the difference?
  5. How many days (maximum) are allowed as presentation period if only copies of transport documents are presented and LC does not specify the maximum number of days for presentation? (UCP 600 Article 14)
  6. Is the applicant’s (buyer) consent or approval a “must” (or necessary) before the issuing bank can make amendments to a letter of credit?
  7. UCP 600 sub-article 10(c) states, ‘If the beneficiary fails to give such notification, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment.’ What does it mean?
  8. Specifically to the bankers: Distinguish between LCs available by (i) sight payment, (ii) deferred payment, (iii) acceptance and (iv) negotiation. (UCP 600 Article 6)
  9. Under CIF Incoterms 2010: (a) At which point is the risk transferred from the seller to the buyer? (b) The “I” in CIF means “insurance”; but specifically/precisely which type? (c) Who is supposed to procure it – the seller or the buyer? (d) The insurance is supposed to cover which segment of the transit of the cargo (only port to port, warehouse to warehouse, only sea journey, land+sea, from seller’s warehouse to buyer’s warehouse…)? (e) Where does effective “delivery” take place?
  10. What do you understand by the expressions (a) non-documentary condition, (b) data conflict, (c) silent confirmation?
  11. LC condition: ‘Goods must be of Australian origin.’ Is the beneficiary/exporter required to include a certificate of origin?
  12. Are the following statements correct: (a) “An issuing bank can never be a nominated bank”; (b) An issuing bank cannot ‘negotiate’, it can only ‘honour’ (c) a confirming bank cannot refuse to negotiate or honour a complying presentation.
  13. The first advising bank is requested by the issuing bank to add its confirmation to the credit. The first advising bank does not do so, but requests the second advising bank to add their confirmation. Is it in order under the UCP rules?
  14. When the consignment is transported from the warehouse of the seller to that of the buyer – both being located far inland – how would you identify whether the LC issued through SWIFT MT700 requires the presentation of a bill of lading (BL) or a multi-modal transport document (MMTD)?
  15. Can FOB Incoterms 2010 or CIF Incoterms 2010 be used for transportation of goods by air, or in container?

The above is only the tip of the iceberg. If you need to master letters of credit, the UCP rules, ICC documentation rules, the Incoterms rules, marine cargo (transit) insurance – simply get in touch.

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