DOCUMENTARY CREDITS. 28th and 29th April Navigate. LCs and more LETTERS OF CREDIT & RELATED DOCUMENTATION

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1 DOCUMENTARY CREDITS LCs and more 28th and 29th April 2007 LETTERS OF CREDIT & RELATED DOCUMENTATION KEY CONTENTS How to make Letters of Credit work for you Optimise use of Letters of Credit Alternative modes of payment available How to reduce Credit Risk Fraud Risks at - Radisson SAS Hotel Dubai Deira Creek Regulatory and Legal Risks Using Sales Contracts to your advantage Proper use of Transport Documents. Common Discrepancies in Transport documents. Issues with Insurance and Common Discrepancies Facilitator Zahoor N Dattu Includes Import and Export Checklist and Guide ORGANISED BY Navigate CONSULTING Radisson Plaza Baniyas Road, Deira P.O.Box Dubai United Arab Emirates Phone: Fax: events@navigate.ae

2 DOCUMENTARY CREDITS - KEY CONTENTS LCs and more 1 Brief History and the Basic Documentary Credit Operation 1.1 Brief History 1.2 The basic documentary credit application The Buyer The Issuing Bank The Irrevocable Undertaking Advising Bank Nominated Bank Shipment of Goods and Presentation of Documents Documents and Payment Buyers and Goods 1.3 Generic flow chart of the Documentary Credit Process 1.4 Definition A Generic Understanding of Letter of Credit, Commercial Credit, Documentary Credit and Standby Letter of Credit. 2 The Sales Agreement 2.1 Contract of Sale Conclusion of Export Contract Law Governing Contract International Sales Law An effective Sales Agreement Independence of Contract WHO is involved WHY it is needed 2.2 Trade Terms in Foreign Trade Incoterms Incoterms and Documentary Credits 2.3 Methods of Payment Advance Payment Open Account Documentary Collection Documentary Credits Aval Guarantees 3 Types of Credits Clean Credits Commercial credits v standby letters of credit Revocable credits Advance Payment Credits (Red Clause Credits) Revolving Credits and Installment shipment Evergreen Credits Credits established under aid agreements Inoperative Credits 3.1 Transferable Credits Transferable credits Back-to-back credits Transferable credits v back-to-back credits 3.2 Irrevocable Credits Irrevocable Credits Irrevocable Confirmed Credits 3.3 Types of Credit and Settlement methods Sight Payment Deferred Payment By Acceptance By Negotiation

3 DOCUMENTARY CREDITS - KEY CONTENTS LCs and more 4 Payment to third parties - Assignment of Credit Proceeds Background Extent of bank s responsibilities Extent of payment security. Assignment of credit proceeds 5 Parties to Documentary Credit Transactions 5.1 Roles and Responsibilities Applicant s side Applicant and Beneficiary Applicant and Issuing Bank Issuing Bank and Advising/Nominated Bank Issuing Bank and Confirming Bank 5.2 Roles and Responsibilities Beneficiary s side Beneficiary and Advising Bank Beneficiary and Nominated/Confirming Bank Beneficiary and Transferring Bank Beneficiary and Issuing Bank 5.3 Roles and Responsibilities in Claiming Bank and Reimbursing Bank Claiming Bank and Issuing Bank Reimbursing Bank and Issuing Bank 5.4 Roles and Responsibilities illustrated Diagram Who talks to whom about what 6 Stages of Transport Pre-Carriage Main Carriage Post Discharge 6.1 Sea Types of Carriers Ship Owners Chatterer Liners Tramps Freight Forwarders Multimodal Transport Operators Forwarders v Carriers 6.2 Introduction - Mate Receipt 6.3 Characteristics of Transport Documents Marine/Ocean Bill of Lading Non-Negotiable Sea Waybill Charter Party Bill of Lading Multimodal transport document Difference between Multimodal Transport Document (MTD) and a through Transport Document (TTD) Air transport document Road, rail or inland waterway transport documents Courier and post receipts Summary - Transport Documents 6.4 Common discrepancies in transport

4 DOCUMENTARY CREDITS - KEY CONTENTS 7 Other Documents 7.1 Insurance Documents Insurance Policies Insurance Certificates Broker s Cover notes Insurance terms as commonly seen average, franchise, excess deductible, deck shipment, claims payable/uae/london/new York/etc, warehouse to warehouse clause. 7.2 Financial Documents Bills of Exchange Drafts and Promissory Notes 7.3 Commercial Documents Commercial Invoice Certified Invoice Certificate of Analysis Certificate of Weight Inspection Certificate Packing List Weight List 7.4 Documents for Official Purpose Certificate of Origin Consular Invoice Legalised Invoice Health Certificate 7.5 Ten Common Discrepancies from Bankers Survey@ 7.6 Release of Goods Steamship Guarantees/Indemnities Airway releases and delivery orders Letters of Indemnity (LOIs) Counter Indemnities 8 Risks 8.1 Risks for the Applicant Goods Foreign Exchange Failure of the Issuing Bank 8.2 Risks for the Issuing Bank Insolvency of the Applicant Fraud risk, sovereign and regulatory risk and legal risk 8.3 Risks to the Beneficiary 8.4 Risks to the Advising Bank 8.5 Risks to the Confirming Bank 8.6 Risks to the Reimbursing Bank 8.7 General risks Fraud risks Sovereign and regulatory risks Legal risks Force majeure and frustration of contract 9.0 Making LC Work Anatomy of Deadlines in What is not discrepancy in the eyes of UCP 10.0 Checklist and Guide For For For Export Sales 11.0 Specimens of Major Trade Reading material provided on day one for clarifications in Q & A on day two.

5 WHEN AND WHERE Saturday and Sunday - 28th and 29th April 2007 at Radisson SAS Hotel, Dubai Deira Creek ITENARY Day 1 Day 2 08:00 Registration and Refreshments 08:00 Review and Refreshments 08:30 Session 1 08:30 Session 5 10:30 Morning Coffee 10:30 Morning Coffee 10:50 Session 2 10:50 Session 6 13:00 Lunch 13:00 Lunch 14:00 Session 3 14:00 Session 7 15:30 Afternoon Coffee 15:30 Afternoon Coffee 15:50 Session 4 15:50 Session 8 17:30 Close of Day One 17:00 Feedback and Certificates THE FACILITATOR Zahoor Dattu brings with him over 33 years of trade finance expertise. Currently Head of Corporate Services in Abu Dhabi Commercial Bank, he has earlier held senior level posts with Standard Chartered Bank and Mashreq Bank. Starting his career in 1973 with Central Bank of India, Bombay, Zahoor moved to ANZ Grindlays Bank Dubai, in 1980 as Trade Finance Manager. In 1998 he joined Mashreq Bank Psc Dubai, as an Assistant Vice President, Trade Finance, before finally moving to his current position. A M.Com. from Bombay University, Zahoor is a Certified Documentary Credit Specialist from the IFS (Institute of Financial Services) and IFSA (International Financial Services Association). Zahoor was a regular faculty at Mashreq Learning Centre. He is regularly invited to speak at the Emirates Institute of Banking and Financial Studies, UAE. Zahoor is a contributing Editor to LC Monitor, a trade finance journal published from Canada, his articles on trade finance frequently appear in various International Magazines. A founder member of Informal Trade finance Working Group in the Emirates, he is well respected in the banking and business circles for his knowledge and guidance. Zahoor is a lively speaker who enjoys sharing his rich experiences. WHO SHOULD ATTEND All who are involved in Commercial dealings with Customers or Suppliers. Importers or Exporters Logistics Staff Finance Staff Administration staff involved in drafting commercial documents INVESTMENT AED 1,900/- (U.A.E. Dirhams One thousand nine hundred only) Fees include : Workshop Material, Lunch, Refreshments, and a Certificate of attendance

6 DOCUMENTARY CREDITS 28th and 29th April 2007 REGISTRATION To Register Please fill the below form and send it to: Navigate Consulting 423, Radisson Plaza, Baniyas Road, Deira. P.O.Box 93192, Dubai, United Arab Emirates Tel: Fax: DELEGATES Mr/Mrs/Ms First Name Surname Job Title Department Company Address Telephone Fax Total No of employees Approved by Signature Name Designation Payment: Cheque will be ready on (date) contact Mr/Mrs/Ms at for collection. The session is limited to a maximum of 28 delegates Full payment must be received in advance to confirm registration. Payments to be made vide Company Cheque or Bankers Draft in favour of Navigate Consulting. For payments at our office - Our working hours are 9 am to 1 pm and 2 pm to 5 pm - Saturday to Thursday