TRADE FINANCE PRODUCTS. Rosanna Murabito

Transcription

1 TRADE FINANCE PRODUCTS Rosanna Murabito

2 1- CONTRACT 5 - Shipment of goods 8 Payment 6 Documents mailed 3- L/c Issued on UBI group INCOMING L/C (UBI EXPORT) 5 - Docs presentation ITALIAN EXPORTER 4 ADVICE OF L/C UBI><BANCA UBI Corporate Banking 9 - Payment Italy MT 710 Advice of a Third Bank's or a Non-Bank's Documentary Credit MT 720 Transfer of a Documentary Credit WORLD FOREIGN IMPORTER 7 - Docs release to collect the goods 2- LC opening request FOREIGN BANK OF THE IMPORTER Article 39 Assignment of Proceeds 7 - Payment 2

3 1- Purchase contract 5 - Shipment of goods 8 Payment 6 Documents mailed 3- LC issue on UBI><Banca INCOMING L/C (UBI EXPORT) CONFIRMATION 5 - Docs presentation ITALIAN EXPORTER 4 - LC advised and reach a confirmation agreement UBI><BANCA CreDoc Online 7 - Payment Italy TFP Trade Facilitation Program WORLD Article 9. Reimbursement Undertaking FOREIGN IMPORTER 7 - Docs release to collect the goods 2- LC opening request FOREIGN BANK OF THE IMPORTER Silent Confirmation 9- Payment 3

4 CONTRACT 5 - Shipment of goods 8 Documents mailed 10 Payment on maturity 3- Deferred LC issue on UBI><Banca Export LC discounting (Both confirmed and unconfirmed) 6 - Docs presentation with request to discount before maturity ITALIAN EXPORTER 4 - LC advice 7 Payment, less discount fee UBI><BANCA Italy Article 12 Nomination in lieu tax FOREIGN IMPORTER 9 - Docs release to collect the goods 2- Deferred LC opening request FOREIGN BANK OF THE IMPORTER 10- Payment 4

5 1- Purchase contract 5 - Shipment of goods 12- LC repayment + interest 10 Information of Post-financing provided 8 Documents mailed 3- LC issue on UBI><Banca Export LC with Post-financing to the foreign importer 6 - Docs presentation under LC terms ITALIAN EXPORTER 4 - LC advice 7 Sgiht Payment of LC UBI><BANCA Italy WORLD FOREIGN IMPORTER 9 - Docs release to co llect the goods 2- Sight LC opening request with Postfinancing + agreement 11 Information of Post-financing provided FOREIGN BANK OF THE IMPORTER 5

6 6 Warning

7 Discounting Bills of exchange without recourse Supplier Credit Policy 7

8 1- Purchase contract 5 - Shipment of goods 9 Payment less discounting interest 7 Inform UBI about discounting request 3- Deferred LC issue on Foreign bank 8 Assignment of proceeds on maturity OUTGOING L/ C (UBI IMPORT) Discounting to foreign exporter Foreign EXPORTER 6 - Docs presentation with request to discount under LC before maturity 4 - LC advice 10 Payment less discount interest Foreign BANK OF EXPORTER. MT 710 Advice of a Third Bank's or a Non-Bank's Documentary Credit WORLD this letter of credit is discountable Italy Conform documents ITALIAN IMPORTER 2- Deferred LC opening with «Discountable» clause UBI><BANCA Assignment 11 Repayment on maturity 8

9 ISSUANCE OF INTERNATIONAL /LOCAL GUARANTEES ISSUE MT 760 Issue SBLC Contractual Guarantees (bid bond, advance, performance, maintainance Funding Requirements REQUEST MT760 Contractual Guarantees (bid bond, advance, performance, maintainance Tax refund payment bond 9

10 Summary: ADVICE OF NON CONFIRMED L/C ADDING CONFIRMATION DISCOUNTING L/C EXPORT POST FINANCING DISCOUNTING B/E IMPORT DISCOUNTING ISSUE OR REQUEST TO ISSUE GUARANTEES / S.B.L.C. 10

11 Annex.in case you wish to learn more 11

12 12 Flow MT 710: examples from SWIFT U.H.

13 13 Flow MT 720 examples from SWIFT U.H.

14 Assignment of Proceeds Dear Sirs, We transcribe hereafter, for your proper knowledge, the text of the letter which has been transmitted to us from..(beneficiary of l/c). on (date) QUOTE Re: IRREVOCABLE DOCUMENTARY CREDIT N. XXXXXXXX = (amount) OUR REF. N. ZZZZZZZZ With reference to the above mentioned irrevocable documentary credit please note that we confirm you hereby our irrevocable order to transfer on our behalf to..(indicazione del beneficiario estero indirizzo e n. di conto ), the amount of.(importo in cifre e lettere del solo impegno).. soon after the full amount equal to.(importo del credito)...- relevant to the above stated Credit, will be ready and available for us, after dispatch, within the stated validity terms, with all duly complying documents. Without any responsibility on your part, you are kindly requested to give immediate advice to the concerned party:..(beneficiario estero).., by stating the validity terms of said credit. UNQUOTE In advising you of the instructions stated in the above said letter, without any engagement or responsibility on our part, please note that, as it is a credit domiciled for payment at a Foreign Bank counter, we will carry out the instructions received by our client, only after the Foreign Bank has credited us the relevant covering amount. We assure you, however that, as it is an irrevocable order, no further instructions from..(beneficiary of l/c ). meant to modify or revoke these instructions, will be accepted by ourselves, without your previous approval. Please also note that the undertaking we have been charged with will be accepted by ourselves unless 1) we have any prior claims on our customer or 2) there are judicial rulings preventing the payment. 14

15 T.F.P. Mt 799: WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF : CREDIT NO. AAA/16 IN YOUR FAVOUR UNDER THE TERMS : OF THE LETTER OF AGREEMENT BETWEEN OURSELVES AND : YOURSELVES DATED (..)(THE 'CONFIRMING : BANK AGREEMENT'). OUR IRREVOCABLE STANDBY LETTER : OF CREDIT IS ISSUED IN SUPPORT OF THE FOLLOWING : INSTRUMENT (THE 'ELIGIBLE INSTRUMENT') : CLAIMS: PAYMENT WILL BE MADE IN ACCORDANCE WITH : THE TERMS OF THE CONFIRMING BANK AGREEMENT WITHIN : FIFTEEN DAYS AFTER RECEIPT BY US OF YOUR NOTICE : OF UNPAID CLAIM IN THE FORMAT AND ACCOMPANIED BY : THE ENCLOSURES DESCRIBED IN THE CONFIRMING BANK : AGREEMENT (OR, IF THAT FIFTEENTH DAY IS NOT A : TRANSFER (TARGET) SYSTEM, THE NEXT FOLLOWING : NOTICE OF UNPAID CLAIM. : MORE THAN ONE NOTICE OF UNPAID CLAIM MAY BE : PRESENTED. : THIS STANDBY LETTER OF CREDIT IS SUBJECT TO UCP : 600 AND SHALL BE GOVERNED BY AND CONSTRUED IN : ACCORDANCE WITH THE LAWS OF ENGLAND AND WALES. MT 700: :78: PLEASE ADD CONFIRMATION BASED ON 100 PCT COVER FROM EBRD. 15

16 I.R.U : WE ARE AUTHORIZED BY ABCD BANK : TO ISSUE OUR IRREVOCABLE REIMBURSEMENT UNDERTAKING FOR THE AMOUNT OF : EUR 00000,00 IN F/O YR GOOD BANK. :. : HEREBY WE ISSUE OUR IRREVOCABLE REIMBURSEMENT EUR 00000,00 TO HONOUR YOUR CLAIM UNDER LETTER OF CREDIT NO :aaaaaaa ISSUED ON.. : BY ABCD BANK FOR THE AMOUNT OF EUR 00000,00. :. : WE HAVE BEEN INFORMED BY THE ABOVE NAMED ISSUING BANK THAT YOU ARE AUTHORIZED TO PRESENT REIMBURSEMENT CLAIM TO US UNDER THE SAID L/C. : WE IRREVOCABLY UNDERTAKE TO HONOUR YOUR REIMBURSEMENT CLAIM UP TO AMOUNT OF EUR 00000,00 PROVIDED YOU CONFIRM TO US THAT : TERMS AND CONDITIONS OF A/M L/C HAVE BEEN : COMPLIED WITH OR THE ISSUING BANK HAS ACCEPTED : THE APPLICANT'S CONSENT TO PAY AGAINST DISCRDOCS. :. : OUR REIMBURSEMENT UNDERTAKING EXPIRES ON : ANY REIMBURSEMENT CLAIM MUST REACH : US BY AUTHENTICATED TELETRANSMISSION AT LEAST 3 : BANKING DAYS PRIOR MATURITY. : ANY PAYMENT THE MATURITY DATE OF WHICH DOES NOT : FALL ON A U.S./EC/BY BANKING DAY SHALL BE : BROUGHT FORWARD TO THE NEXT BANKING DAY. :. : ALL CHARGES UNDER THE REIMBURSEMENT UNDERTAKING : ARE FOR THE ACCOUNT OF THE APPLICANT. :. : REIMBURSEMENT IS SUBJECT TO URR 725. :. : YOUR CLAIM MUST INDICATE OUR REF. 16

17 Post Finance SES/OSN 3483/ RICEV.IL 99/99/99 ORE 00:00 MSG 700 AVAILABLE WITH..BY.. :41 : A BCABIT21 BY DEF PAYMENT F:DEFF PAYMENT :42P: ON 360DAYS FROM THE DATE OF SHIPMENT :78 : UPON RECEIPT OF CREDIT CONFORM DOCS PLS PAY TO THE BENEFICIARY BENEFICIARY AT SIGHT AND GRANT US A FINANCING FOR THE PERIOD OF 12 MONTHS FROM THE DATE OF PAYMENT TO THE BENEFICIARY.. PROVIDED PRESENTATION OF STIPULATED DOCUMENTS REPAYMENT OF THE PRINCIPAL AMOUNT TO BE EFFECTED BULLET.. YOUR FINANCING COMMISSION IS TO BE CALCULATED AS FOLLOWS: ON THE AMOUNT OF SET OF DOCS PAID FOR THE PERIOD FROM THE DATE OF PAYMENT TO THE BENEFICIARY TILL MATURITY DATE AT EURIBOR FOR RESPECTIVE MATCHING PERIOD FIXED AT TWO BUSINESS DAYS PRIOR TO THE DATE OF PAYMENT TO THE BENEFICIARY PLUS 0.XX0 PCNT P.A. COMPOUNDED 365/360 DAYS/YEAR BASIS. 10 PCNT INCOME TAX WILL BE WITHELD BY US IN RESPECT TO THE FINANCING COMMISSION CALCULATED BY YOUR GOOD BANK. YOUR FINANCING COMMISSION WILL BE PAID AT THE END OF FINANCING PERIOD SIMULTANEOUSLY WITH PRINCIPAL REPAYMENT INSTALLMENT.. PRINCIPAL REPAYMENT INSTALLMENT AND FINANCING COMMISSION WILL BE PAID UPON RECEIPT OF YOUR AUTHENTICATED SWIFT MESSAGE INDICATING ITS EXACT AMOUNT AND DETAILS OF CALCULATION. 17

18 Discounting Import L/C TO: UBI BANCA (UNIONE DI BANCHE ITALIANE) SCPA RE: Assignment of irrevocable L/C Nr.... matur. on, issued by Bank for a total amount of.. Our Ref.... With reference to the above mentioned Letter of Credit, we hereby confirm that our client has assigned their rights to us and that we have irrevocably and unconditionally assigned to you, accepting your offer price of..., plus 3 banking days, plus the amount of USD 150,00 for foreign bank charges. We hereby represent and warrant that we will notify...name of the L/C issuing bank... ( the Issuing Bank of the above L/C) to pay directly to you any proceeds under the above L/C or accept your instructions in that regard. Notwithstanding the foregoing, we further confirm that in case of receiving of any proceeds under the above L/C from the Issuing Bank at maturity, we shall hold such proceeds in trust for your benefit and we shall pay directly to you or your assignees in accordance with your instructions, for the full face value we received and any interest accrued thereon, free of any deduction whatsoever from our side. We further undertake to indemnify you any loss and damages should the documents presented for negotiation under this L/C be forged, fabricated or fraudulent, or contain any material misrepresentation or no genuine underlying transaction exists in connection with the L/C or the beneficiary commits fraud in relation to the underlying transaction. We confirm that all the copies of the documents provided by us under this transaction are authenticated. Please provide to credit the discounted proceeds to our (USD/EUR/etc) Acct. Nr. xxx with xxx Bank (swift code: xxx). Kindly acknowledge receipt. 18

19 Counter Guarantee MT 760 In consideration of you, UBI Banca, issuing the above guarantee to (..beneficiary ) in the terms stated above, we, (requesting Bank) hereby irrevocably and unconditionally agree to pay to you on your r first written demand an amount equal to and in the same currency as each sum paid by you under or in connection with the above guarantee, and we undertake to indemnify you and keep you indemnified against any and all claims, losses, costs, damages, interest or expenses you may sustain in connection with the above guarantee, provided that the maximum amount recoverable from us under this counter guarantee shall not exceed the sum of...( amount ) All amounts payable under this counter guarantee will not be subject to counterclaim or set-off and all such payments must be made free and clear and without deduction of any kind. This counter guarantee is valid until receipt of your authenticated SWIFT message in confirmation of release from all liability thereunder. We agree that this counter guarantee shall be construed and decided in accordance with Italian law and subject to the jurisdiction of the Court in Brescia (ITALY). (or, in alternative) International Rules for Demand Guarantees URDG 758 ICC Publication. 19