Through our structured training and management development programmes (MDP) we provide in-house, practical training courses in these areas to exporters, importers, commercial banks, corporate houses and industries within and outside India.
Those who wish to have an in-depth understanding of the subject, or wish to upgrade their skills further, will benefit immensely from the programmes on offer.
For bankers, we offer an opportunity to acquire insights on issues far beyond those offered through in-house training programmes. Avail of this unique opportunity to master the rules of the game, know about the ICC Banking Commission’s decisions, understand the ICC rules; conduct your operation with confidence, offer superior service to your internal and external clients, enhance all-round performance, reputation and profitability of your organisation. Benefit directly from the best in this business. You will find no other.
Every programme is tailored to meet the specific requirements of the target group. Exercises and case studies are similarly selected keeping in mind the interest areas of a group. We promise to surprise you with information directly and immediately applicable to your operations.
All delegates will receive a set of reference material, including a copy of ICC UCP 600 & other hand-outs, and a book on Letters of Credit and the UCP.
We provide these courses across India, Africa and other countries abroad.
Overview of programmes
Letters of credit – for exporters, importers, bankers:
Negotiation between buyer and seller: Key issues. Role and responsibilities of applicant,beneficiary, and intermediary banks.
Basic concepts: Complying presentation, ‘single notice’, implications of ‘availability’ of LC – it’s, problem LCs, dangerous LCs, rules for amendment, attaching agreements to LCs, on-board date v.BL date, honour v. negotiation, recourse v. without recourse, nominated bank,parties to a credit.
Types of LCs: unconfirmed and confirmed LCs, transferable LC, back-to-back LC; spotting dangerous LCs; Crazy terms in LCs. Common errors; check-list for beneficiary& banks.
Understanding the SWIFT Fields, applying correctly for and LC; issuing an LC through SWIFT MT7XX – exercises.
Do you really know your UCP? Q&A, quiz,case studies, ICC Banking Commission Opinion.
Documentation Risk Management (for exporters, importers, bankers)
Documents under Bills for Collection (URC 522), Collection Instructions
Concepts: Financial documents, commercial documents, drafts/BoE, non-documentary condition, document not called for in LC, ‘additional documents’, data conflict in documents, stale documents, original & copy, shipping documents, transport documents, ICC rules for non-negotiable (i.e. copies of) transport documents,
ICC rules on documentation: UCP 600 and ISBP 745. Documentationas a risk management tool in internatonal trade. Case studies
Shipment Risk Management (ICC Incoterms 2010 rules)
Basic concepts. Rules vis-à-vis transfer of title, ownership and revenue recognition issues. Why include Incoterms in contracts?Definition and analysis of the Incoterms®Rules. Responsibilities and obligations of the seller and buyer. Delivery, cost and passing or risk –the interrelations.
What type coverage? Cost control through use of appropriate Incoterms rule. Common (but easily avoidable) errors by exporters and importers
The hidden dangers in incorrect application of terms like EXW, the ‘D’ rules, FOB: Seller’s contingency insurance. Exercises.
Marine Insurance, Cargo Insurance
Fundamental principles of marine insurance. The concept of ‘uberrimae fldei’.
Cargo risks defined. Duties and responsibilities of the insurer and the insured.
Transit clauses: Definition, scope of coverage. Express and implied warranties.
Voyage and time policies. Start and end of ‘cover’, start and end of voyage, deviations. Floating cover, open cover – useful to exporters, importers.
Types of losses: Nature, definition, extent. Covering risks not covered by the‘A’ clause.
UCP 600 article 28 on insurance.
Institute Cargo Clauses A, B & C: Risks covered; exclusions, duration, transit clause; warehouse to warehouse’ – the misconceptions; date of policy/certificate vis-à-vis start of cover; change of voyage, termination of voyage defined. Insurable interest. Losses – type and coverage.
Seller’s contingency insurance, cargo insurance and Incoterms 2010.
Exchange Risk Management
The global foreign exchange market – evolution, background. RBI, authorised dealers, merchants.
Fundamentals of rate mechanism – conventions and basic concepts.
Exchange rate mechanism: types of rates: merchant rate, inter-bank rate, swap and cross rates,forward rates, premium and discount.
Risk management: Open position, currency position, gap management.
Exchange risk management by exporters and importers.
Banks’ treasury– how the system works (an overview).
All programmes are enriched with modular Q&A, illustrations, case studies, analysis of ‘Opinions of the International Chamber of Commerce (ICC) Banking Commission’, and a rich collection of exercises. Suitable course material may also be shared with the participants as necessary.